What is an Enduring Power of Attorney?
The law in relation to Enduring Powers of Attorney (EPA) changed on 16 March 2017.
There are two types of EPA’s:
- Personal Care and Welfare – This EPA relates to your health and personal wellbeing. You can only appoint one attorney at a time, plus a substitute.
- Property – This EPA relates to your property, in other words, anything that requires your signature. Your attorney will be able to sign documents for you, deal with your bank accounts, utility bills, etc. One or two attorneys can be appointed at the same time, with substitutes.
What else can I include in my EPAs?
- You can provide full addresses, contact details including an email address for your Attorneys.
- Where possible, your Attorney must always consult you first before making any decision.
- There is provision for a duty to consult. This means you may nominate someone you trust who your Attorney is able to consult with before making a decision on your behalf.
- Your Attorney must keep a record of each financial transaction they enter into on your behalf. Failure to do so is an offence for which your Attorney can be prosecuted and fined.
- There is provision for you to revoke any previous EPAs you may have signed in the past.
- An EPA for Personal Care and Welfare can only come into effect if you are deemed mentally incapable. This assessment is made by a qualified medical professional.
- An EPA for Property may come into effect immediately, or you may choose for the power to come into effect only if you are mentally incapable.
What about my current EPAs?
If you have completed signed and dated EPAs prior to 16 March 2017, then these documents are still valid.
What if I don’t have EPAs?
If you become mentally incapable without EPAs then it may be necessary for your next of kin to apply to the Family Court for an Order under the Protection of Property Rights Act. The Family Court will appoint someone to act on your behalf. As you can imagine, Court applications are expensive and time consuming. It is far more economical and sensible to spend the money now and sign EPAs.
Where to from here?
Enduring Powers of Attorney are onerous and lengthy documents. Please discuss your requirements with a member of our Team at KW Legal who will be happy to help.
Note: Katherine’s Blog is not a substitute for legal advice, please contact your lawyer.