How Effective is Your Enduring Power of Attorney?
You may be surprised…
Most people know the importance of having an Enduring Power of Attorney (EPOA). If you become unable to make financial decisions, your attorney can step in and manage things on your behalf.
But here’s the catch – not all EPOAs are created equal. In fact, most standard documents are too limited and don’t allow your attorney to do the things you’d reasonably expect. For example, unless you’ve given specific authority, your attorney can’t use your money to support your spouse or children.
This is why having a modern, well-drafted EPOA is essential. It should cover the following key areas:
What Your Enduring Power of Attorney Should Cover:
Support for Your Family
By default, your attorney can only act in your best interests.
That means they can’t financially support your spouse, children, or dependents unless you give them express authority.
Without this authority, your attorney could even be sued by beneficiaries—or by you if you regain capacity.
Acknowledging Conflicts of Interest
Many people appoint their spouse as their attorney.
But if your spouse uses your funds to pay the mortgage (benefiting both of you), they could technically be challenged by your executor or other beneficiaries.
A tailored EPOA can protect them from this risk.
Authorizing Disclosure of Information
Your attorney may need to share or request your personal information.
Privacy laws can block this without your written consent.
A modern EPOA includes express authority to handle disclosures.
Access to Your Will
Giving your attorney access to your Will helps them make consistent decisions about your assets.
Without this, they may unknowingly act against your wishes, leaving them open to legal challenges.
Management of Your Superannuation
Super is often one of your biggest assets.
Your attorney may need access to provide for your family or reduce tax liabilities before your death.
Without authority, super funds (especially SMSFs) may refuse to deal with your attorney.
Maintaining Your Lifestyle
Attorneys can decide how you are cared for—at home, in care, or elsewhere.
By giving instructions, you can guide them to prioritize your lifestyle or focus on preserving your estate.
Authority Over Trusts
If you are a trustee or controller of a trust, you can authorize your attorney to act in those roles.
Rules differ by state, but this should always be addressed.
Gifting and Charitable Donations
Without authority, your attorney cannot make gifts or donations.
You can include clear instructions to allow this.
Accountability and Checks
Always choose an attorney you deeply trust.
But safeguards can help—such as requiring them to report their actions to other family members or trusted individuals.
This promotes transparency and avoids family conflict.
Final Thoughts
Your Enduring Power of Attorney is more than just a form—it’s a crucial tool that shapes how your finances, family, and lifestyle are managed if you lose capacity.
A generic, standard EPOA may leave gaps, expose your attorney to legal risk, and fail to protect your loved ones. By ensuring your EPOA is modern and comprehensive, you can give both yourself and your family peace of mind.
General advice disclaimer / General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC Wealth accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement for this purpose
