Who Will Manage My Affairs If I Lose Capacity?
You may have a Will in place but what about Enduring Powers of Attorney? Young or old, Enduring Powers of Attorney are an essential part of any person’s estate planning.
Often people assume that in the event they become mentally incapable, their parents or spouse will automatically be able to manage their personal and property affairs. However, once you reach 18 years of age that is no longer the case.
An Enduring Power of Attorney is the legal document that gives authority to a person of your choosing to manage your affairs if you were to become mentally incapable, the person you nominate for this role becomes known as your Attorney. There are two types of Enduring Powers of Attorney – one relating to your Property and one relating to your Personal Care and Welfare.
Once signed, your Enduring Power of Attorney document will be held in safe keeping and will only be activated if a medical professional determines you no longer had mental capacity.
An accident, injury or illness rendering you incapable could strike at any time, but so long as you have your Enduring Powers of Attorney in place you can have peace of mind that people you trust are the people that will have the ability to communicate with medical professionals, continue to pay your bills and manage your property.
When selecting your Attorney, it is important to consider somebody who is a good communicator and can make sound decisions at an emotional time. If siblings or others are to be consulted bear in mind the dynamic of those relationships and think about who the best person would be to manage that dynamic.
What happens if I lose capacity and I don’t have Enduring Powers of Attorney in place?
If you were to become mentally incapable without Enduring Powers of Attorney in place, your family or friends would have to make an application to the Court for an order (known as a PPPR order) appointing a nominated person as your Welfare Guardian and Property Manager.
Welfare Guardians and Property Managers appointed by the Court have mostly the same authority as an Attorney. They can make decisions about your everyday and medical care and manage any property you own to promote and protect your best interests.
Rather than relying on the Court process, it is certainly best practice to put Enduring Powers of Attorney in place while you can. Applying to the Court for these orders often results in a great cost in both time and expense. However, if you find yourself in a position where a loved one has lost their ability to make decisions for themselves and does not have Enduring Powers of Attorney in place, we are certainly able to help assist you through this process.