A good estate plan will often include consideration of the management and treatment of assets prior to death, in addition to the provision for one's loved ones and the transfer of assets after death.

When you die, your estate representatives (often called executors or administrators) will be responsible for administering your estate and distributing the assets to your beneficiaries. These estate representatives will also have the task of managing your affairs and assisting family members after death.

But it is also important to consider who will handle your personal and business affairs during your lifetime and how your affairs will be affected should you lose mental or physical capacity due to a debilitating illness or a tragic accident.

It is possible to execute an Enduring Power of Attorney, which gives another person, or persons, the power to deal with matters on your behalf, such as handling bank accounts and investments, signing cheques, or dealing with property to be rented or sold.

You may appoint a trusted relative or friend to make and execute decisions for you while you are indisposed. Remember that you are placing a great amount of power and trust in your attorneys to manage your affairs and you should therefore choose them carefully.

As with the appointment of the Executors of your Will, you should only appoint competent persons who have a full understanding of your family and business affairs and who are trustworthy and reliable.

It may be that your spouse or your children are capable of handling this responsibility. On the other hand it may be more appropriate for a professional to manage your affairs. Alternatively you may decide to appoint a combination of the two which may give you the peace of mind that there is less opportunity for misuse of the powers.

Whoever you decide to appoint, you should choose people who are able to co-ordinate well with each other.

The Enduring Power of Attorney is usually drafted so that it only comes into effect upon the production of a certificate from a qualified medical practitioner attesting to your loss of physical and/or mental capacity to manage your own affairs.

Should you fall ill, suffer a stroke or develop Alzheimer's without having executed an Enduring Power of Attorney, your next of kin would have to be appointed your Receiver by the Court under the Mental Health Act 1968. Under a receivership order, accounts must be filed with the Registrar of the Supreme Court on an annual basis. But such an application is time-consuming and costly and your family may have to wait for a Court order before they can pay for your care and associated expenses. An Enduring Power of Attorney is less expensive, maintains privacy, and is more convenient and less stressful for the family.

An Enduring Power of Attorney is also a more secure arrangement than the holding of a joint bank account where abuse may go undetected or where the terms of your Will may not be carried out with respect to the assets in a joint bank account.

You may dictate under what circumstances the Enduring Power of Attorney comes into effect and how it will be used. Remember that your attorneys will only have as much power as you grant to them in the Enduring Power of Attorney. You are free to regulate the situations in which they may make gifts, or transfer your property.

Your Enduring Power of Attorney may stipulate that it only comes into effect provided that all the attorneys are able to act, and also that they must act together. You may, however, provide that your attorneys may act separately, and this may prove useful if one of the attorneys travels frequently or resides abroad.

Remember that an Enduring Power of Attorney may be revoked in the event that you regain capacity and are able to handle your own affairs. All powers of attorney are automatically revoked upon death.

An Enduring Power of Attorney is prepared in addition to your Will. As with a Will, it is always advisable to discuss your Enduring Power of Attorney with your legal counsel, who can advise how you can best safeguard your interests by limiting your attorneys' opportunities for abuse and exploitation. Whilst there is no registration regime for Enduring Powers of Attorney in Bermuda, an Enduring Power of Attorney is always potentially subject to the supervision of the Supreme Court of Bermuda.

However you decide to proceed, an Enduring Power of Attorney allows you to prepare for a time when you may not be able to handle your own affairs, and gives you the opportunity to dictate how your affairs will be managed, and by whom.

Attorney Vanessa Lovell is a member of the Trusts and Financial Structures Team of Appleby Spurling & Kempe. Copies of Ms Lovell's columns can be obtained on the Appleby Spurling & Kempe website at www.ask.bm.

This column should not be used as a substitute for professional legal advice. Before proceeding with any matters discussed here, persons are advised to consult with a lawyer.