What is an Enduring Power of Attorney and why do I need one?

An Enduring Power of Attorney (EPA) is a legal document that allows you to appoint trusted people to make decisions on your behalf if you become unable to do so yourself.

EPAs are an important part of estate planning and help ensure your affairs can continue to be managed if your circumstances change.

There are two types of EPA:

• Property – covering your financial and property matters
• Personal Care and Welfare – covering decisions about your health and wellbeing

It’s important to note that EPAs only apply during your lifetime. They automatically cease when you pass away.

What’s the difference between the two types of EPA?

While both types of EPA allow someone to act on your behalf, they operate in different ways.

Personal Care and Welfare EPA

An attorney appointed under a Personal Care and Welfare EPA can only act once a medical professional confirms that you no longer have the mental capacity to make those decisions yourself.

This safeguard ensures your independence is protected for as long as possible and that decisions about your care are only made when necessary.

Property EPA

A Property EPA is more flexible.

Depending on how it is set up, it can:

• take effect immediately (for example, if you are overseas or need assistance managing finances), or
• take effect only if you lose mental capacity

You can also place limits on your attorney’s powers, including requiring them to consult with other people when making decisions on your behalf.

What happens if you don’t have an EPA?

If you lose mental capacity and do not have EPAs in place, no one automatically has the authority to make decisions for you.

In that situation, your family or loved ones would need to apply to the Family Court to have a welfare guardian and/or property manager appointed.

This process can be:

• time-consuming
• costly
• stressful for your family

It can also delay important decisions at a time when they may need to be made quickly.

Why having an EPA matters

An Enduring Power of Attorney is one of the simplest ways to ensure your affairs are managed according to your wishes if you are unable to make decisions yourself.

It provides:

• continuity in managing your finances and property
• clarity about who can make decisions for you
• protection of your personal wellbeing
• reassurance for your family

Without an EPA, even straightforward situations can become legally complex.

Talk to Grayson Clements

If you would like advice on putting Enduring Powers of Attorney in place, the Grayson Clements team can help you create arrangements that are clear, practical and tailored to your circumstances. Talk to us today.