EPOAs are like a life jacket – rather have them and not need them, than not have them and need them.
We all want to avoid complications. Putting EPOA’s in place will give you and your loved one’s peace of mind for the future. It can make difficult situations a little easier knowing that someone you nominate can legally assist you with certain tasks or with making decisions.
They are essential documents should you find yourself unable to make decisions, whether you are temporarily or permanently unable to make decisions yourself.
There are two types of EPOA’s, one for property decisions and one for personal care and welfare decisions. We highly recommend that you have both although the Attorneys can be different people.
Personal Care and Welfare – This EPOA authorises the person you name as your Attorney to make decisions on your behalf about your personal care and welfare and only takes effect if you become mentally incapable or if you are unable to make these decisions yourself.
Property – This authorises your Attorney/s to make decisions on your behalf about your property, meaning your house, finances or any other property (assets and liabilities) that you own and can be activated earlier than upon loss of capacity, if need be.
Being an Attorney is a big responsibility. Your Attorney must always promote and protect your welfare and your best interests. They must encourage you to make or be a part of the decision making as far as possible. It is important that they encourage you to be part of the community, and they should consider the financial effects of all the decision they make.
When dealing with your property, your Attorney cannot benefit themselves, (except for out-of-pocket expenses) unless you expressly provide for this in the EPOA, or if you hold the property jointly.
It is comforting to know that your Attorneys’ actions can be supervised and challenged.
Once your EPOA has come into effect, it remains in place until you terminate the Attorney’s appointment or their authority to act is suspended, or they renounce. In all cases, EPOA’s end when a person dies.
With no Enduring Powers of Attorney in place, no one has an automatic right to handle your affairs. Even if some of your assets are jointly owned, your spouse or partner may be able to deal with some of these matters, but they will not be able to sign documents or make significant decisions on your behalf without legal authority. To obtain legal authority you will need to apply to the Family Court for the appointment of a Property Manager and/or Welfare Guardian. Court applications are more expensive than the cost of EPOA’s and can delay very important decision making.
As our lives change, so too might the people in our lives, therefore it’s important to review your EPOA’s every few years. If you don’t have EPOA’s or need to review your existing EPOA’s, let’s have a chat.