When people think about estate planning, they often focus on wills—who gets what when they pass away. But what if something happens to you while you’re still alive, and you can’t make decisions for yourself? This is where an Enduring Power of Attorney (EPOA) comes in.
What Is an Enduring Power of Attorney?
An Enduring Power of Attorney (EPOA) is a legal document that allows you to appoint someone you trust to make decisions on your behalf if you become unable to do so. This could be due to illness, accident, or age-related conditions like dementia.
Unlike a standard Power of Attorney, which is usually only valid while you have capacity, an EPOA continues (‘endures’) even if you lose the ability to make decisions for yourself.
What Can an EPOA Do?
Depending on the powers you give them, your attorney can make important financial and legal decisions, such as:
✔ Managing your bank accounts and paying bills
✔ Making investment decisions
✔ Selling or maintaining property
✔ Handling business affairs
In some states, you can also grant powers over personal and health decisions, allowing your attorney to make medical and care-related choices for you.
What Happens If You Don’t Have an EPOA?
Many people assume that if something happens to them, their spouse or children will automatically be able to step in and manage things. But without an EPOA, this is not the case.
🚨 Your family may have to apply to a tribunal – If you lose capacity and don’t have an EPOA, your loved ones may need to go through a lengthy and expensive legal process to get the authority to manage your affairs.
🚨 Your assets could be frozen – Banks and financial institutions won’t release funds to pay your bills or handle your property without legal authority.
🚨 Decisions may be made by a government-appointed guardian – If no family member is legally authorised, the government could appoint someone to make decisions on your behalf, even if it’s not who you would have chosen.
Choosing the Right Attorney
An EPOA gives someone significant power over your financial and legal affairs, so choosing the right person is critical. Some things to consider:
✅ Trustworthiness – Choose someone responsible and capable of handling financial matters.
✅ Availability – Ensure they can step in quickly if needed.
✅ Alignment with your wishes – Discuss your values and preferences with them in advance.
Final Thought
An Enduring Power of Attorney is a simple but powerful tool that ensures your financial affairs are handled by someone you trust if you’re ever unable to manage them yourself. Without one, your family could face legal complications, delays, and financial stress.
💡 Do you have an Enduring Power of Attorney as part of your estate plan? If not, now is the time to put one in place. Contact us today to ensure your wishes are protected: financialsuccess@simonwu.com.au