Common Myths About Powers of Attorney

An Enduring Power of Attorney is a critical document in your estate plan, yet there are many misconceptions about how it works and what it can achieve. From confusion about when an Enduring Power of Attorney (EPA) kicks in, to misunderstandings about Advance Health Directives, we’ll debunk some of the most common myths surrounding these essential tools.

Myth 1: A Power of Attorney Gives Someone Total Control Over Your Life

This is perhaps the most widespread misconception. While a Power of Attorney allows someone to make decisions on your behalf, it doesn’t give them unlimited control over your life. In fact, there are strict limits on the kinds of decisions they can make.

Enduring Power of Attorney (EPA): appoints someone you know and trust to make your financial and personal (including health) decisions for you if you lose the ability to make those decisions for yourself. The person stepping in to make decisions for you is called your ‘attorney’. Your attorney is bound by law to act in your best interests and within the scope of the authority you’ve given them (ie. they can’t step outside the authority and power you have given them!).

Advance Health Directive (AHD): where you make medical decisions in advance now, while you have capacity, so that the document speaks for you if you lose decision-making ability in the future. Your AHD gives directions about your medical care and treatment preferences if you become incapacitated. Your attorney must follow your wishes in the AHD and can’t override those decisions.

Myth 2: You Don’t Need an Enduring Power of Attorney if You Have a Will

A Will and an Enduring Power of Attorney serve entirely different purposes. Your Will governs what happens to your estate after you die, whereas an EPA and AHD come into effect while you’re still alive but unable to make decisions for yourself. Your Will, combined with a Letter of Wishes, provides comprehensive protection and peace of mind after your death. Your EPA and AHD do the same, but during your lifetime.

If you suffer an illness, injury, or lose mental capacity, a EPA allows a trusted person or people to manage your affairs. Without an EPA, your loved ones may face legal complications and delays in accessing your finances or making necessary care decisions. There’s also a risk that someone you don’t know or wouldn’t want making decisions for you is appointed as your decision-making by the Queensland Civil and Administrative Tribunal.

Myth 3: Only Elderly People Need an Enduring Power of Attorney

While it’s true that many people consider an EPA as they get older, it’s important to have one in place at any age. Accidents and sudden illnesses can happen to anyone. Having an EPA ensures that someone you trust will be able to manage your affairs if you’re temporarily or permanently incapacitated.

Myth 4: Once You Appoint an Attorney, You Can’t Change It

Another common misconception is that once you appoint an attorney, you lose control over your choices. In reality, as long as you retain decision-making capacity, you can revoke or change your Power of Attorney at any time. You’re in control of who acts on your behalf.

Myth 5: If I Lose Capacity, I Won’t Care What Decisions Are Made for Me

The decisions that can be made for you if you lose decision-making ability can greatly impact your quality of life and the value of your assets.
The types of personal (including health) decisions that can be made for you include:

  • Who you spend time with
  • Where you live
  • What food you eat
  • Activities you participate in
  • Healthcare you receive
  • Who provides your health care

The types of financial decisions that can be made for you include:

  • How your money is spent
  • Whether your assets are sold
  • If and how your assets are invested

Do you care about any of those decisions? If yes, you need an Enduring Power of Attorney.

A person who has lost capacity remains deserving of dignity, a good quality of life, and respect for their values, beliefs, and preferences. By nominating trusted individuals to make decisions on your behalf, you are safeguarding your future and ensuring that your wishes are honoured.

Conclusion

Understanding the facts about Enduring Powers of Attorney and Advance Health Directives is key to protecting your future. These legal tools allow you to maintain control over your personal, financial, and healthcare decisions even when you can’t make them yourself. If you haven’t already included an Enduring Power of Attorney in your estate plan, now is the time to consider it. Reach out to us today to ensure your plan is comprehensive and protects you and your family.

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