Blog Post

Enduring Power of Attorney 

Sandy Gilmete • Nov 12, 2020

We all understand the importance of having a Will but how many of us know about the importance of having an Enduring Power of Attorney. What would happen if you lose mental capacity and not able to take control of your finances and/ or make decisions about your personal care and welfare? This is when you require an Enduring Power of Attorney (“EPOA”).


What is an Enduring Power of Attorney?

An Enduring Power of Attorney is a legal document where a person (the donor) gives authority to someone (the attorney) to act on their behalf when they are unable to do it themselves.


An EPOA operates when you are still alive but have lost physical and/or mental capacity.


Please be aware that an ordinary Power of Attorney is not the same as an EPOA. A Power of Attorney is used when a donor appoints an Attorney to act for them when they are overseas and uncontactable.


Why do we need an Enduring Power of Attorney?

It is often hard to think about a time when you would not be able to make the decisions you need to, or sign documents that relate to your assets or personal health.


We think that our partner or next of Kin will be able to make decisions for us when we are unable to however, this is not correct. Whether you are 18 years old or have been married for 50 years, if you are injured and or lose mental capacity, your family will not be able to access your bank accounts (held in your sole name) or sell your property to pay for your care. If under this situation you do not have an EPOA, your family will need to apply through the Family Court to access your assets, or to make decisions about your personal care. This can take months and cost thousands of dollars.


Ensuring you have an Enduring Power of Attorney will give you peace of mind that someone you trust will look after your assets and personal wellbeing if you are unable to do so, whether this is temporary or permanent.


How does an Enduring Power of Attorney work?

There are two types of Enduring Power of Attorney:


  1. Property : This relates to all your assets and financial affairs either tangible or intangible. This can come into effect if you become mentally incapable or still mentally capable but perhaps physically incapable.

  1. Personal Care and Welfare : This relates to decisions around what happens to your health care requirements while you are incapacitated; for example: whether you require rest home care or further assistance with you care. It is to ensure that a person you trust can make a decision about your care when you can’t.

It is important to understand the differences between these two types, the decisions that would be made under each type and how they work together. For instance, the person you appoint as your attorney for your personal care and welfare may well need to consult with the person you appoint for your property if, for instance, financial support is needed to pay for a care home.


Who can be my Attorney?

1. EPOA for Property:

·You can appoint one or more Attorney’s to act together or separately.

·Your Attorney should be someone you Trust.

·Your Attorney must be 20 years old and of sound-mind and not a bankrupt.

2. EPOA for Welfare:

·You can only appoint one person at a time to be your Welfare Attorney.

· Your Attorney must be someone you Trust and who knows you well enough so that they can make decisions for you as if you had made those yourself.

·Your Attorney must be 20 years old and of sound-mind and not a bankrupt.

Once you have decided who will be your attorney(s) you should let your family members know. This helps to avoid confusion should the worst happen.


What is my Attorney’s role?

Fundamentally; the role of your attorney is to promote and protect your best interests, in the event of physical or mental incapacity. The role of a property attorney can include for example paying bills, rolling over term deposits or even selling your house.


How do I set up an Enduring Power of Attorney?


You should set up an EPOA through a lawyer who will discuss exactly how your EPOA will work best for you. The biggest decision you will make is who will be your attorney(s). Remember that there are often cases where the attorney for your personal care and welfare will need to make decisions with the attorney, or attorneys, for your property.


Some things to consider:

·For your Property Attorney appoint two people to act jointly and severally. In this way both Attorneys can consult each other when making decisions which is in your best interest. This will also mean that if one Attorney loses capacity, the other Attorney can continue to act for you.

·Require consultation with others. You can appoint one overall attorney who is the final decision maker, but require them to consult with others for the decisions they make.

When can your EPOA attorney start making decisions for you?

1. EPOA for Property

An attorney’s power under an EPOA for Property can come into effect when you become mentally incapable or before you are considered mentally incapable. This would be useful if you are mentally capable however physically incapable for example; not able to go to the bank.


2. EPOA for Personal Care and Welfare

An attorney’s power under an EPOA for Personal Care and Welfare comes into effect ONLY when you are considered ‘mentally incapable’. You are considered mentally incapable if you are unable to make decisions about your care and welfare, unable to communicate decisions you have made about your care and welfare or unable to see the consequences of those decisions. For minor decisions the attorney can make this assessment themselves, but for significant decisions, for example residential care or a major operation, your attorney must have a medical certificate from a doctor or health professional, stating you have lost capacity.



What happens if you become mentally capable again?

If you lost your mental capacity, perhaps through illness, but you are now well again you can revoke your attorney’s power by giving them notice in writing. This doesn’t cancel the EPOA but your attorney will be unable to make decisions for you without an assessment from a health professional or a ruling from the family court that you are once again mentally incapable. You can also cancel (revoke), vary or suspend an EPOA, but you must be mentally capable to do this.


What next?

If you would like to discuss any of the information above and or set up an Enduring Power of Attorney, please contact Sandy Gilmete at Ward Adams Bryan-Lamb.

By Nicola McLeish 17 Aug, 2023
The partners are delighted to announce that Jonathon Amtmann has been promoted to Associate of the firm.
The Fencing Act
By Jonathon Amtmann 16 Aug, 2023
The Fencing Act 1978 (“the Act”) deals with boundary fences between neighbours. Read on to find out all you need to know when erecting a boundary fence.
By Roosje Rabusa 23 Nov, 2022
With the use of social media and online platforms becoming more and more prevalent in our daily lives, it is also becoming easier for people to use these platforms as a way to inflict psychological and verbal abuse or harm on other people. Individuals are now able to use online platforms to create fake profiles, post, threaten, and stalk people as a form of psychological harm. It is even becoming increasingly common for people to send messages by entering text into the reference box in a bank transfer. Individuals are becoming more creative, so it is important that we are aware of the risks of harm, and take the necessary steps to avoid such behaviour from continuing. Under the Family Violence Act 2018, such online behaviour may constitute “family violence” and an application to the Family Court for a Protection Order may be necessary. In order to make an application under this Act, you and the person exerting this harmful behaviour (the Respondent) must have been in a “family relationship”. The Respondent may be a current or previous spouse or partner, or a family member. You may wish to seek special conditions to be included in the Protection Order should the Court grant one. This may include that the Respondent must take all reasonable steps to remove harmful material about you from social media. If you are not in a “family relationship”, an application can be made in the District Court under the Harmful Digital Communications Act 2015. In contrast to an application under the Family Violence Act 2018, for an order to be granted under this Act, it must be satisfied that the other party had intention to cause you harm, and such communication would cause harm to a reasonable person and did cause you harm. If successful, the Court may make orders against the other party including taking down or disabling the material, ceasing or refraining from the conduct concerned, or publishing an apology. This Act is narrow and more targeted, and is not likely to result in quick or efficient redress compared to the Family Violence Act 2018. In any event, it is important that you put necessary measures in place to stop this behaviour from continuing including not sharing your passwords, disabling GPS tracking on online platforms, blocking others on social media, and making a complaint to the relevant agencies.
By Debbie Bryan-Lamb 12 Oct, 2022
Looking to buy your first home but having to rely on Mum and Dad to cough up some money? How would that work and what risks do you need to be aware of?
By Debbie Bryan-Lamb 27 Sep, 2022
Four important legal documents essential in most people’s lives include having a: • Will; • Enduring Powers of Attorney (Property and Personal Care and Welfare); • Family Trust; and • Relationship Property Agreement.
By Debbie Bryan-Lamb 07 Sep, 2022
Question – do you want to have peace of mind about what will happen to your property if you die or separate from your partner? If you answered “yes” then yes you definitely need a pre-nup agreement.
By Debbie Bryan-Lamb 03 Aug, 2022
If you are already living together as a couple or you are planning on moving in together, you need to get sound advice from an experienced lawyer specializing in relationship property matters. Right from the outset you need to understand the implications “living together” may have for your separate property rights.
By Jonathon Amtmann 27 Jul, 2022
The Wills Act 2007 sets out specific requirements Will documents must follow in order to be valid.
By Roosje Rabusa 10 Mar, 2022
When a partner or spouse acquires property from a third party by way of survivorship (or death), that property will be separate property.
By Roosje Rabusa 17 Feb, 2022
As a general rule, gifts between partners or spouses (known as “interspousal gifts”) are not classified as relationship property - unless such gifts are used for the benefit of both parties or that is the intention.
More Posts
Share by: