News

25 February 2020

The truth about why you need an enduring power of attorney

The importance of an enduring power of attorney is often overlooked because people believe that their spouse or next of kin will be able to look after their affairs if they were to lose capacity. The truth is, it would be very difficult for your loved ones to deal with your affairs if they are not appointed as your attorney.

Let’s use the example of Jane and Tom:
• Jane and Tom are in their mid 50’s.
• Tom works full-time and Jane works part-time.
• Jane and Tom own their family home jointly.  There is a mortgage over their property.
• Tom is involved in a car accident and suffers serious brain injuries. As a result, Tom is unable to make decisions for himself and requires care on a full time basis.
• Jane is unable to care for Tom on a full-time basis and cover the mortgage repayments.  Jane decides to sell the family home and move Tom into a care facility.
• Jane contacts a real estate agent to list the property, however the sale comes to a standstill when Jane encounters a problem; Jane and Tom do not have enduring powers of attorneys.
• As Jane is not appointed as Tom’s attorney, she is unable to sign the contract for sale or transfer documents on Tom’s behalf to effect the sale of the property.

The consequence of not having an enduring power of attorney in place means that an interested party (i.e. family member or friend) would need to make an application to the Queensland Civil and Administrative Tribunal (“QCAT”) to be appointed as the administrator for financial matters and/or guardian for personal and health matters. So in the scenario above, Jane would need to make this application to have the power to sell their property. This process is stressful and can be costly.

If no one is willing to take on this responsibility then the Public Trustee and the Public Guardian may be appointed to take control of your affairs. There is also the risk of these statutory offices being appointed if there is a dispute between family members about who is the most appropriate person(s) to act.

The reality is, any person can unforeseeably lose their capacity at any time during their life. Wouldn’t you prefer to appoint someone who you trust to look after your affairs if this situation were to arise?

If you would like to avoid this problem for relatively little time and money, please do not hesitate to contact us to set up your enduring power of attorney.

Get your affairs sorted today.  Contact our Mareeba wills and estate lawyers on 07 4092 3555.

Signup for all the latest news + offers

Share This

Select your desired option below to share a direct link to this page