A Comprehensive Guide and Tips to Prevent Financial Abuse
When planning for the future, one of the most important legal documents to consider is the Enduring Power of Attorney (EPoA/EPA). Here we help you understand the essential duties of an Enduring Power of Attorney. In Australia, these documents different from state to state. They are to ensure that someone you trust will make decisions on your behalf if you become unable to do so.
What are the responsibilities of being an EPOA?
It is crucial to understand the responsibilities that come with being an Enduring Power of Attorney. In this article, we will explore the key duties of an Enduring Power of Attorney. We provide a clear guide for both those appointing and those being appointed.
What is an Enduring Power of Attorney?
An Enduring Power of Attorney is a legal document that allows you to appoint a trusted individual (or individuals) to make decisions on your behalf regarding your financial and personal affairs. A general power of attorney ceases to be effective if you lose mental capacity. An Enduring Power of Attorney continues to operate, hence the term “enduring.”
Key Duties of an Enduring Power of Attorney
Acting in the Principal’s Best Interests
The foremost duty of an Enduring Power of Attorney is to always act in the best interests of the principal. That is the person who appointed the attorney. This means making decisions that prioritize the principal’s well-being, financial security, and overall quality of life. Whether managing finances, paying bills, or making investment decisions, the attorney must put the principal’s needs first.
Managing Financial Affairs Prudently
An Enduring Power of Attorney must manage the principal’s finances with care and diligence. This includes ensuring that all bills are paid on time, managing bank accounts, and making wise investment choices. The attorney must keep detailed records of all financial transactions, as they may need to account for their actions at any time.
Keeping Accurate Records
Transparency is key when acting as an Enduring Power of Attorney. The attorney must keep comprehensive and accurate records of all decisions made and actions taken. This includes financial transactions, legal decisions, and any other actions taken under the authority of the EPA. Proper record-keeping not only protects the principal but also the attorney, should their decisions ever be called into question.
Avoiding Conflicts of Interest
An Enduring Power of Attorney must avoid situations where their interests could conflict with those of the principal. For example, the attorney should not make decisions that benefit themselves or others at the expense of the principal. It is crucial the attorney remains impartial and focuses solely on the best interests of the principal.
Understanding the Limits of Authority
While an Enduring Power of Attorney has significant authority, this power is not unlimited. The attorney must operate within the bounds set by the EPA document and the law. For instance, certain decisions, such as making or changing a will, are beyond the scope of an EPA and require a different legal authority.
Consulting with the Principal (If Possible)
Whenever feasible, the attorney should consult with the principal before making significant decisions. Even if the principal’s capacity is diminished, involving them in decisions to the extent possible can help ensure that their preferences and values are respected.
Regularly Reviewing the Principal’s Needs
The attorney should regularly review the principal’s financial situation and personal needs. Circumstances can change, and it’s essential that the attorney adapts their management of the principal’s affairs accordingly. This might involve reassessing care needs, adjusting budgets, or seeking professional advice when necessary.
Maintaining Confidentiality
All personal and financial information related to the principal must be kept confidential. The attorney must safeguard the principal’s privacy, only sharing information with those who have a legitimate need to know, such as other legal representatives or healthcare providers.
Final Thoughts: The Responsibility of Being an Enduring Power of Attorney
Being appointed as an Enduring Power of Attorney is a significant responsibility. It requires a deep commitment to the well-being of the principal, a thorough understanding of legal obligations, and the ability to make sound, unbiased decisions. Whether you are considering appointing someone as your Enduring Power of Attorney or have been asked to take on this role, it’s essential to understand these duties fully. By doing so, you can ensure that the principal’s best interests are protected, and their wishes are respected.
If you need more information or guidance on appointing an Enduring Power of Attorney or understanding your responsibilities in this role, Trusted Aged Care Services is here to help. Contact us today to discuss how we can support you through this important process.