Most of us know the importance of having a Will. But far fewer people have heard of Enduring Powers of Attorney, often shortened to EPOAs. These documents don’t deal with what happens after you die. Instead, they step in if something happens to you while you’re still alive and unable to make decisions for yourself.

Shenali Lewke-Bandara of Denham Bramwell Lawyers explains why EPOAs are just as important as Wills, and why waiting until you need them is too late.

What an EPOA does

An Enduring Power of Attorney gives someone you trust the legal authority to make decisions on your behalf if you lose the ability to do so yourself. There are two types:

• Property EPOA: allows someone to make financial and property decisions, such as paying bills, selling a house, or managing investments.
• Personal care and welfare EPOA: covers decisions about your health and well-being, including medical treatment and living arrangements.

These documents only come into play when you can’t make decisions yourself, for example, after a serious accident, a stroke, or a health condition that affects your capacity.

Why they’re essential

Without an EPOA, no one automatically has the right to make these decisions for you. Even your partner or children would have to apply to the Family Court for authority, which is stressful, time-consuming, and expensive.

EPOAs are often described as the documents you hope you never need, but if you do, they are invaluable. They allow your loved ones to step in quickly and legally, without extra hurdles, at what is already a difficult time.

Common misconceptions

A lot of people assume their spouse or family can simply step in if something happens. In reality, the law doesn’t work that way. Banks won’t release funds, property can’t be sold, and care decisions can’t be made without proper authority.

Another misconception is that EPOAs are only for the elderly. In truth, accidents and health events can happen at any age. Having EPOAs in place is about peace of mind, not pessimism.

Choosing the right person

Appointing an attorney under an EPOA is a big decision. You’re giving someone control over your finances or health decisions, so trust is critical. Many people choose a partner or adult child, but it could also be a close friend or professional adviser.

It’s possible to appoint more than one person, either to act together or separately, depending on what suits your situation. A lawyer can help you think through the pros and cons of each option.

Putting it in place

Setting up EPOAs is a straightforward process, but it must follow strict legal requirements to be valid. A lawyer will talk through your circumstances, explain the powers you can grant, and make sure the documents reflect your wishes.

Like a Will, an EPOA isn’t something you set and forget. It’s worth reviewing if your relationships or circumstances change.

Planning ahead

Life is unpredictable, and while you can’t prepare for every possibility, you can make sure the right structures are in place. EPOAs give you that safeguard. They protect your home, your finances, and your personal well-being if the unexpected happens, and they spare your family unnecessary stress.

Disclaimer: This article is based on a podcast featuring insights from experienced professionals and is intended for general information and inspiration only. While we aim to share valuable guidance, please seek personalised advice from qualified professionals before making decisions about your property, finances, or renovation plans.