"Mr Wong suffered a sudden stroke recently. His wife rushed to the hospital to find that her husband could neither move nor speak clearly. In addition to worrying about him, Mrs Wong also had to take over the management of their finances. Even dealing with her daily expenses exhausted her – she had never asked Mr Wong about their bank accounts, properties or other financial arrangements, and now she simply had no idea what she should be doing."

What could you possibly do if you were ever in a similar situation?

The best thing is to be well-prepared and to plan ahead for the future. One possibility is to consider, arrange for and carry out the "Three Treasures for the Elderly" programme. This includes – (1) Executing an Enduring Power of Attorney ("EPA"), (2) Making a Will, together with (3) Advance Directives.

This means that you can manage your affairs in advance. More importantly, it will help to prevent anxiety, worry, mistrust and even conflict between different family members. It could also help to clarify the situation with regard to the careers or businesses of the individuals concerned.

But first, let us take a better look at EPAs – What are they and what do they do?

Studies demonstrate that even with mild dementia, individuals lose the capacity to manage their finances. It therefore makes good sense to learn about the best legal methods to organise your affairs before the onset of any possible illness and to make the most suitable financial arrangements for everyone concerned.

Like most common law jurisdictions, Hong Kong has had its own EPA legislation, the Enduring Power of Attorney Ordinance, Cap, 501, since 1997. This legislation provides an instrument for the appointment of someone of your own choice, while you have the capability to decide, who you would like to manage your financial affairs and what areas they should look after, if by any chance you should need such help. If you proceed along this route however, make sure you get a solicitor to help you, as there are a number of guidelines, some of which are quite strict, that you will need to follow.

Despite its benefits however, the usage rate of EPAs in Hong Kong is extremely low. As at the end of September 2010, that is in 13 years, only 53 EPAs have been registered with the High Court so far. There is no doubt that a major reason for this low uptake is due to insufficient promotion. Additionally, since two simultaneous witnesses, a doctor and a solicitor, need to sign the document, many believe that this cumbersome execution requirement together with high fees also contribute to the low usage rate.

As a result, the Law Reform Commission has currently put forward two important consultations, one in April 2007 and the other in July 2009, to improve the system. The first consultation deals with a simplification of the witness requirement, removing the necessity to have a doctor as a witness. The second consultation deals with expanding the scope of EPAs to include personal care, residence and other daily decisions, among others.

In the meantime, watch out for our next article, which will look into the second treasure in the treasure chest – Wills.

Until then!

Special Thanks: The Guardianship Board

Continuous reading：
"Three Treasures for the Elderly" Treasure 2 – Will
"Three Treasures for the Elderly" Treasure 3 – Advance Directives in Relation to Medical Treatment