What happens when you can't manage your own affairs due to old age or because of accident or illness? The solution is called an Enduring Power of Attorney (EPA), which is different from a Will because it operates while you are still alive.
An Enduring Power of Attorney is a legal document that allows you to choose someone to make important decisions for you when you can no longer make them yourself.
There are two types of EPAs: one for personal care and welfare and the other for property. You can have one or both, depending on your needs.
A Property EPA covers your financial affairs and assets, like accessing bank accounts to pay bills. You can grant authority over all your property or just specific aspects of it. A Personal Care and Welfare EPA deals with your health and well-being, including decisions made if you are in hospital. In all cases your appointed attorney is legally obligated to act in your best interests.
If you become unable to manage your affairs and don't have an EPA, your family or friends, who want to help, must go through the Family Court. This process can take time and be expensive, and you won't have control over who the court might appoint.
Your EPA automatically takes effect when you become permanently incapacitated and can't manage your affairs. It remains in place for your entire life, but you can still handle your matters if you're capable. You can change or cancel your EPA at any time, as long as you still have the mental capacity to do so. This flexibility ensures that you remain in your control until a time of need arises and the EPA comes into use.
One of the most critical decisions is selecting the person you trust to be your attorney. It could be a friend, family member, or even a professional like a lawyer or accountant This is useful because the skills required for personal welfare are different from those needed for financial management. Regardless of your choice, trust in that person is vital.
You can appoint more than one person as your attorney, but care should be taken not to make it too complicated. For example, having two people who both need to sign off on decisions can create issues, especially if one of them lives further away.
Setting up an EPA provides peace of mind that your assets and personal welfare will be properly managed on a temporary or permanent basis by someone you trust when you're unable to do so. We should all have them.
