Enduring Powers of Attorney
What is Enduring Powers of Attorney?
In Australia, an Enduring Power of Attorney (EPA) is a legal document that allows you (the principal) to appoint someone you trust (the attorney) to make financial and legal decisions on your behalf if you become unable to make those decisions yourself due to incapacity or illness.
Enduring Power of Attorney’s are important for several reasons:
Decision Making in Incapacity: An EPA comes into effect when you lose the capacity to make decisions about your financial and legal matters. It ensures that there is someone you trust to act on your behalf in such situations, managing your affairs and making important decisions.
Choice of Attorney: An EPA allows you to choose your attorney, typically a family member, friend, or trusted advisor, who will act in your best interests. This choice ensures that the person handling your affairs is someone you know and trust.
Avoiding Legal Proceedings: Without an EPA, if you become incapacitated, your family or loved ones may need to apply to the courts for a guardianship or administration order to manage your affairs. This can be time-consuming, costly, and emotionally draining. An EPA can help avoid this process.
Asset Protection: An appointed attorney can protect your assets and financial interests by making decisions regarding investments, paying bills, managing bank accounts, and dealing with property matters in your best interest.
Continuity of Business Affairs: If you own a business or have complex financial matters, an EPA can ensure that your business operations continue smoothly and that your financial obligations are met in your absence.
Healthcare Decisions: While EPAs primarily cover financial and legal matters, they can also be used in conjunction with other legal documents, such as advance health directives or Medical Treatment Decision Make appointments, to ensure that your overall care and well-being are managed as you wish.
Peace of Mind: Knowing that you have an EPA in place can provide peace of mind, both for you and your loved ones, as it establishes a clear plan for managing your affairs during a difficult time.
It's important to note that an EPA must be created while you have the mental capacity to understand the document and its implications. Once created, you can specify whether it takes effect immediately or only when you lose capacity, and you can outline any limitations or instructions for your attorney.
EPAs can be complex legal documents, so it's highly recommended to consult with a lawyer experienced in Estate Planning and Enduring Powers of Attorney to ensure that the document is properly drafted and compliant with Australian laws. Additionally, it's a good practice to regularly review and update your EPA as circumstances change or if you wish to make any modifications.