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Why Everyone needs an Enduring Power of Attorney (EPA)
The term “Enduring Power of Attorney” (or EPA for short) might sound scary to some people. When you break it down “Enduring” means lasting over a period of time and an “Attorney” is someone that acts on your behalf. So, when you put an EPA in place, it means that you are formally nominating someone to make decisions for you, over time. Your attorney can look after your personal wellbeing and/or property and finances in the event that you’re medically unable to, or if you decide it's too much to manage yourself. You have the power to decide who acts as your attorney, who they need to consult with (aside from yourself), determine conditions and restrictions and for property and finance matters, when the EPA comes into effect.
There are two kinds of EPA – one for personal care and welfare and a separate one for property. An EPA for personal care and welfare allows you to choose one person as your attorney. This is not a lawyer, but someone close to you who knows your wishes and who you trust to make important decisions about your health, accommodation and care. This EPA only comes into effect in the event that a medical professional determines you no longer have mental capacity.
On the other hand, an EPA for property gives you the option to appoint one or more attorneys to make decisions about your property, finances and legal contracts. This means they can pay bills, manage a bank account or buy and sell property on your behalf. You can determine whether it takes effect immediately, or only if you no longer have the capacity to make decisions. With this EPA you can also determine who your attorney/s need to consult with or provide information to and include restrictions and conditions to control how your assets are managed.
To future-proof the EPAs, we always recommend you appoint a back-up person called a successor attorney. This way, should your attorney be unable to act on your behalf or pass away, the successor attorney will be able to step in to make decisions.
Many people believe EPAs are only important to have as we get older, but this is not true! Anybody can lose capacity at any age or stage due to unforeseen circumstances, such as a stroke or an accident. If you do not have EPAs in place and you lose capacity, then it can be stressful, take a long time and be costly to apply to the court to appoint someone to be your property manager or welfare guardian (or both).
Having EPAs in place is like having an insurance policy and needs to be in place in advance. It is particularly stressful when a loved one loses capacity and by taking a bit of time now and getting these documents sorted, you could avoid a lot of extra stress (and cost) for your family down the track.
We’re happy to discuss and advise you on the best ways to protect and manage your estate.
Yolandie Rivas is a Legal Executive for ClearStone Legal.
p: 09 973 5102
