Planning for the future isn’t just about writing a Will.
It’s about making sure your financial affairs stay protected during your lifetime, especially if you become unable to manage them yourself.
That’s where an Enduring Power of Attorney (EPOA) comes in. This legal document allows you to appoint someone you trust to manage your financial and legal affairs if you lose the capacity to make decisions.
It’s one of the most important pieces of future planning you can put in place – yet it’s often overlooked.
Quick takeaways
Planning ahead isn’t just for retirement. It’s about making sure someone can step in if you can’t manage your own affairs due to illness, injury, or age.
Here’s what you need to know:
- An EPOA lets a trusted person manage your finances if you lose capacity.
- It stays valid even if you become mentally incapacitated (unlike a general Power of Attorney).
- You choose what powers they have, including limits and permissions to support others.
- Without an EPOA, your family may need to go to a tribunal to gain control.
- It’s best used alongside a Will and Enduring Guardianship for full protection.
Want to understand how it works, who to appoint, and how to get it right? Keep reading below.
What Is an Enduring Power of Attorney?
An EPOA is a legal document that allows you to nominate one or more people (called your attorney/s) to make financial and legal decisions on your behalf if you’re no longer able to do so.
Unlike a standard Power of Attorney (which becomes invalid if you lose mental capacity), an EPOA endures, continuing to operate during times when you’re mentally incapacitated due to illness, injury, or age-related decline.
This makes it particularly important for people:
- Managing chronic or degenerative health conditions
- Entering retirement or aged care
- Wanting to plan ahead for financial security and family support
By putting an EPOA in place now, you avoid putting your loved ones through a lengthy, expensive legal process later if something unexpected happens.
How It Differs from Other Planning Documents
Many people assume that a Will or general Power of Attorney is enough, but these documents only cover part of the picture.
| Document Type | When It Applies | What It Covers |
| Will | After your death | Distribution of your assets and estate |
| General Power of Attorney | While you have capacity | Financial decisions (ceases if you lose capacity) |
| Enduring Power of Attorney | While you’re alive but have lost capacity | Financial and legal decisions |
| Appointment of Enduring Guardian | While you’re alive but have lost capacity | Medical, health, and lifestyle decisions |
For complete peace of mind, a family lawyer will often recommend having all of these documents in place to ensure your wishes are respected, not just after your passing, but during your lifetime if you’re unable to make decisions yourself.
What Your Attorney Can Do
Your nominated attorney steps into your shoes when you’re no longer able to manage your financial affairs. Depending on how your EPOA is drafted, they can:
- Manage bank accounts, including deposits, withdrawals, and transfers
- Pay bills and everyday expenses
- Buy or sell real estate or other major assets
- Handle investments and superannuation accounts
- Submit tax returns and liaise with the ATO
- Manage debts, loans, and mortgages
- Sign contracts and legal documents on your behalf
- Make financial decisions during emergencies
The scope of your attorney’s authority can be as broad or as limited as you like. Some people grant full financial control. Others restrict their attorney to specific actions, like managing a rental property or paying bills only.
Can Your Attorney Provide Financial Support to Others?
This is one of the most important (and often misunderstood) parts of setting up an EPOA in Australia.
Under the Powers of Attorney Act 2003 (NSW) and similar legislation in other states, an attorney cannot provide gifts or financial benefits to others unless the EPOA document specifically authorises it.
You can include provisions that allow your attorney to:
- Give birthday or holiday gifts to family members in line with your past behaviour
- Cover basic needs like housing, medical expenses, and education for your spouse, partner, or dependents
- Provide reasonable benefits to themselves, such as reimbursement for travel or time spent managing your affairs
If you don’t include these authorisations, your attorney will need to apply to a court or tribunal to make such payments. This can delay support to loved ones and create unnecessary legal stress.
Including clear instructions in your EPOA makes things simpler, faster, and more affordable for everyone involved.
Choosing the Right Attorney
Your attorney will have significant control over your finances, which means choosing the right person is critical.
Here are key traits to look for:
Trustworthiness
You must be confident the person you choose will act honestly and in your best interests. Family members are often chosen, but friends or professional advisors can also be suitable.
Financial Competence
They should be capable of managing money, bills, and paperwork, and understand their legal responsibilities under the EPOA.
Reliability and Availability
They need to be responsive, organised, and able to act when required – not just in theory, but in practice.
Good Communication Skills
Your attorney may need to interact with banks, government agencies, and your family. Clarity and diplomacy are helpful skills in this role.
Willingness to Act
Always speak with your chosen attorney beforehand. Make sure they’re aware of the role and comfortable accepting the responsibility.
Consider Appointing a Backup
You can also nominate a successor attorney (someone who steps in if your primary attorney is no longer able or willing to act).
How to Set Up an Enduring Power of Attorney in Australia
Creating an EPOA is straightforward, but it’s essential to get it right. Here’s how:
- Seek legal advice from a family law specialist to ensure the document reflects your needs and includes all necessary provisions
- Complete the correct EPOA form for your state or territory
- Sign in front of an authorised witness (usually a lawyer, justice of the peace, or eligible professional)
- Give certified copies to your attorney/s and keep the original in a safe place
- Review it regularly, especially if your relationships or circumstances change
Frequently Asked Questions
Q: Do I really need an Enduring Power of Attorney?
If you want to ensure your finances are managed according to your wishes if you lose capacity, then yes. It’s especially important if you own property, run a business, or have dependents.
An accredited family lawyer can also advise if other documents (like a Will, Enduring Guardian, or Binding Financial Agreement) should be considered alongside your EPOA.
Q: Can I have more than one attorney?
Yes. You can appoint multiple attorneys to act:
- Jointly: all decisions must be made together
- Severally: each can act independently
- Jointly and severally: either alone or together
Make sure roles are clearly defined to avoid confusion or conflict.
Q: Can I change or revoke my EPOA?
Absolutely. As long as you still have legal capacity, you can revoke or update your EPOA at any time. It’s a good idea to review your documents every few years or after major life changes.
Q: What if I lose capacity without an EPOA?
Without an EPOA, your family may need to apply to a state tribunal (like NCAT or VCAT) for legal authority to manage your affairs. This process can be stressful, costly, and time-consuming, and may result in someone being appointed that you wouldn’t have chosen.
Planning Ahead Matters
Losing capacity isn’t something any of us like to imagine, but it happens more often than we think, especially due to accidents, strokes, dementia, or sudden illness.
Setting up an Enduring Power of Attorney gives you peace of mind that your finances are protected and that your loved ones won’t be burdened by legal uncertainty.
It’s a simple step that can make a world of difference.
Speak to an Expert at Capelin Lawyers
If you’re ready to protect your future, we’re here to help.
At Capelin Law, our family law experts are here to help you plan with confidence. We’ll guide you through the process of creating a legally sound Enduring Power of Attorney that reflects your personal values and supports your family’s future.
Contact us today for clear, personalised advice on how to get started.
