If something unexpected happened and you were no longer able to manage your finances, who would step in to pay your bills, protect your savings, manage your investments, and make important decisions about your aged care?
Most Australians assume a next of kin can simply take over. In reality, they cannot.
Without a valid Enduring Power of Attorney (EPOA), the people closest to you may be left navigating a complex legal process just to help when you need them most. They may need to apply to a state tribunal for a guardianship or administration order.
That process can be slow, costly, and stressful, adding uncertainty and pressure to an already difficult time for your family.
The good news is that the fix is simple, and every Australian adult should have one in place well before they think they need it.
Putting an EPOA in place is not just about protecting yourself. It is also about giving your family clarity and confidence when important decisions need to be made. It often prompts important conversations between generations about who can step in, how decisions should be made, and what matters most if circumstances change unexpectedly.
This guide explains how an Enduring Power of Attorney works, why it matters for your financial decisions during incapacity, and how to set one up correctly.
What is an Enduring Power of Attorney?
An Enduring Power of Attorney is a legal document that lets you (the “principal”) appoint a trusted person (the “attorney”) to make financial and legal decisions on your behalf.
The word “enduring” is the important bit. It means the document keeps working even if you lose mental capacity. A general power of attorney, by contrast, stops the moment you can no longer make your own decisions, which is precisely when you need it most.
Your attorney can manage bank accounts, pay bills, sell property, run investments, and deal with government agencies including Centrelink and the ATO. They effectively stand in your shoes for financial matters.
An EPOA covers financial decisions. Health and medical decisions are usually covered by a separate document, although in some states, such as Queensland and the ACT, the EPOA can cover both. The names and rules vary by state and territory.
Why every Australian adult needs one
Incapacity is not just an ageing issue. A stroke, a car accident, an early-onset dementia diagnosis, or a serious illness can take away your decision-making ability at any age.
Without an EPOA, no one has automatic legal authority to manage your finances. Not your spouse. Not your adult children. No one.
The alternative is a formal application to your state guardianship tribunal, such as NCAT in NSW, VCAT in Victoria, or QCAT in Queensland. This can:
- Typically take weeks or months to resolve.
- Result in someone you would not have chosen being appointed.
- Involve ongoing reporting to the tribunal.
Superannuation, which is held in trust, cannot be accessed by a spouse without formal authority. Property titles, share registries, and insurance policies all sit outside a joint account arrangement, and each of them needs someone with legal standing to act.
How an Enduring Power of Attorney works in practice
When you set up an EPOA, you choose when it takes effect. There are two common options:
- Immediately. Your attorney can act straight away. This is useful for convenience, for example if you travel frequently or want help with day-to-day banking.
- Upon incapacity. Your attorney can only act once you’ve lost capacity. This usually needs to be confirmed by a doctor or other health professional.
Whichever option you choose, your attorney must act honestly and in your interests, taking your wishes into account, and keep proper records of the decisions they make on your behalf.
You can appoint more than one attorney, and you can specify how they make decisions: jointly (they must agree on everything), severally (each can act alone), or jointly and severally (a mix of both).
You can also set conditions and limits. For example, you might require the approval of a specific family member before your attorney can sell the family home.
While you still have capacity, you can revoke or update the EPOA at any time.
Choosing the right attorney
Trust is the first and biggest consideration. Your attorney will have broad authority over your money, your property, and your dealings with government agencies. You need someone who will act with integrity even when no one is watching.
Beyond trust, think about practical capability. Can this person manage complex financial matters? Do they understand investments, property, and tax? Will they be willing to engage with your financial adviser and accountant when needed?
Common choices include a spouse, an adult child, a trusted friend, or a professional such as a solicitor or trustee company.
Appointing more than one attorney can give you useful checks and balances, but it can also slow decisions down if the attorneys disagree. It is generally a good idea to also name a substitute attorney in case your first choice cannot act when the time comes.
A few red flags to avoid: appointing someone who has their own financial difficulties, someone who lives overseas (the practical complications are real), or anyone who has a potential conflict of interest.
It is also worth thinking about age and health. Appointing a sibling who is only a few years younger than you is fine in principle, but when the time comes if they’re unable or unwilling to act for you, your substitute attorney becomes the person actually doing the work.
Enduring Power of Attorney and aged care
Aged care is the place where not having an EPOA causes the most concern. Decisions about entering care often need to happen quickly. A hospital discharge, a sudden decline at home, or a single available bed at the right facility can mean decisions need to be made in days, not weeks.
The financial decisions in aged care are also significant. The accommodation (Refundable Accommodation Deposit) can cost over $500,000, and you may need to choose between paying a lump sum (RAD) or paying a daily rate (DAP), decide whether to sell or rent the family home, work through how the move affects ongoing aged care costs, and complete the aged care assessment.
Without an EPOA, the family may be unable to access the person’s funds or sign agreements to pay for any of this. Services Australia will generally not discuss pension or care fee details with family members unless they hold legal authority or have been set up as a nominee.
Aged care providers will also need someone with legal authority to sign the accommodation and service agreement and set up payments. Without it, finalising a permanent place can be delayed.
Even setting up home care (support at home) or creating a granny flat arrangement becomes harder than it needs to be.
Enduring Power of Attorney – getting it right
Setting up an EPOA is straightforward, but the document itself should be drafted by a solicitor who knows your state’s rules.
Making sure it fits with your broader financial plan, your superannuation, your investments, and your aged care strategy is where your financial adviser comes in.
The two pieces work best when they are designed together. Review the document every few years as well.
Life events such as a divorce, a death in the family, a move interstate, or a major change in your financial position can all be reasons to refresh who you have appointed and what powers you have given them. Check whether the person you’ve appointed as attorney is still willing and able to act for you.
Need help integrating your EPOA with your broader financial and aged care plan? Book a complimentary consultation.
Frequently asked questions
Can my spouse automatically manage my finances if I lose capacity?
No. A spouse has no automatic legal authority to manage your individual assets, deal with your superannuation, or interact with government agencies on your behalf. An Enduring Power of Attorney is the cleanest way to make sure your spouse can step in without delay.
What is the difference between an Enduring Power of Attorney and a will?
A will takes effect after you die, while an Enduring Power of Attorney operates while you are alive but unable to manage your own affairs. They serve different purposes, and you need both. Your EPOA manages your financial and legal affairs during incapacity, while your will distributes your estate after death. It is also important to consult your solicitor to ensure both documents are properly prepared and kept up to date in line with your circumstances.
What happens if there is no EPOA and I lose capacity?
Your family or representative will need to apply to the relevant state tribunal (such as NCAT in NSW, VCAT in Victoria, or QCAT in Queensland) for an order allowing someone to manage your finances. The process can take months, can be costly if there are disputes, and may result in an administrator being appointed who is not a family member. During that time, your family may be unable to access assets in your name, which can be very difficult if urgent decisions need to be made.
Alteris Financial Group Pty Ltd (ABN 59 133 479 115) holder of AFSL No.402370. The information contained in this article is general in nature and does not take into account your personal circumstances. We recommend you consult a financial adviser whose advice will take into account your particular objectives, financial situation and individual needs. We recommend you consult a solicitor in relation to your will and Enduring Power of Attorney.
Rates and thresholds cited are current at the date of publication and are subject to change. Check the responsible authority for current figures.
Last updated: September 2026
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