1. What is an Enduring Power of Attorney (EPOA)?

An Enduring Power of Attorney is a legal document that lets you appoint a trusted person (your attorney) to manage your financial, legal, or personal affairs. What makes it “enduring” is that it continues to operate even if you lose mental capacity, such as through illness, accident, or age-related cognitive decline.

2. What are the risks of not having an EPOA?

The absence of an EPOA can have far-reaching legal and financial consequences. Should an individual lose capacity without such protection in place, family members are often compelled to apply to the Guardianship Tribunal or courts for authority to act on their behalf.

This process is invariably time-consuming, costly, and emotionally taxing. Worse still, in the absence of clear directives, disputes may arise among relatives regarding the care or finances of the affected person, potentially leading to fractured relationships and suboptimal outcomes.

• Legal complications: Without a designated attorney, decisions about property, assets, or even daily living expenses may be delayed or contested, sometimes leaving vulnerable people without adequate support.

• Financial risks: Unattended bills, unmanaged investments, or a lack of oversight can quickly erode savings and increase the risk of financial exploitation or loss.

• Emotional toll: The process of seeking guardianship or administration orders can be distressing and divisive, compounding the stress that families already face during periods of cognitive decline.

3. Can I create an EPOA without a legal professional?

While it is possible to create an EPOA without legal assistance, engaging a solicitor or legal expert ensures the document is executed correctly and reflects the principal's wishes. Jurisdictional requirements may vary, and a professional can offer guidance on options, implications, and compliance.

Case Studies and Scenarios

Consider the following illustrative scenarios:

• Scenario 1: Margaret, aged 78, is diagnosed with early-stage dementia. She executes an EPOA naming her daughter and son as joint attorneys. As her condition progresses, her attorneys manage her finances, pay for her care, and ensure her wishes are respected. The process is smooth, and the family remains unified.

• Scenario 2: John, aged 82, loses capacity before executing an EPOA. His children, unsure of his preferences, apply to the tribunal for guardianship. Disagreements arise, resulting in delays and distress. John's affairs remain in limbo as family members struggle to reach a consensus.

Statistics and the future look of the aging population in Australia

The numbers speak for themselves. With the projected rise from 433,000 Australians living with dementia in 2023 to over 1 million by 2065, the likelihood that any given family will encounter cognitive disability within their ranks is significant.

Australia’s ageing population brings with it a host of challenges. Dementia and other cognitive impairments can rob individuals of their ability to manage their own affairs, leaving them vulnerable to exploitation, financial loss, and uncertainty. Families often witness loved ones struggling to make informed choices or manage everyday tasks, such as paying bills, handling assets, or making critical healthcare decisions.

By acting early and thoughtfully, Australians can ensure that their autonomy and values are preserved, even when they can no longer speak for themselves. In a society facing the twin challenges of an ageing population and rising cognitive disability, the EPOA remains an indispensable cornerstone of personal planning and dignity.

3. Why an Enduring Power of Attorney is Important

1. Protection if You Lose Capacity
   Cognitive impairment, dementia, or serious injury can leave you unable to make decisions. An EPA ensures your affairs are handled by someone you trust, rather than leaving decisions to courts or strangers.

2. Financial Security
   Your attorney can manage bank accounts, pay bills, handle property transactions, and ensure your finances are protected and properly managed.

3. Healthcare and Personal Decisions
   An EPA covering personal/medical decisions ensures your wishes are respected, such as medical treatments, living arrangements, and care preferences.

4. Prevents Family Conflict
   Clear instructions in an EPA reduce the risk of disputes among family members and ensure your intentions are followed.

5. Peace of Mind
   Knowing your affairs are in safe hands allows you to focus on your health and wellbeing without stress.

With the guidance of our associated legal professionals, your estate planning documents can be carefully tailored to safeguard your family, assets, and legacy for generations to come.