June 2026 – Brenda Fang
The short answer is yes. Planning ahead allows you to prepare for a situation where you may lose the capacity to manage your personal and financial affairs.
Enduring Power of Attorney
An Enduring Power of Attorney allows you to appoint a trusted individual (or individuals) to make legal and financial decisions on your behalf. Unlike a General Power of Attorney, which ceases to operate if you lose capacity, an Enduring Power of Attorney continues to have effect even if you are no longer able to manage your own affairs.
Your attorney can assist with a range of matters, including buying and selling real estate, managing bank accounts and investments, and paying bills and expenses.
It is not uncommon to have both a General Power of Attorney and an Enduring Power of Attorney in place. For example, a General Power of Attorney may be used to authorise someone to manage your affairs while you are overseas, whereas an Enduring Power of Attorney is in place to protect your interests if you lose capacity.
Careful thought should be given to:
* who you appoint as your attorney;
* whether to appoint more than one attorney; and
* the scope of the authority you grant.
You may choose a trusted family member, a close friend, or a professional adviser. If appointing more than one attorney, you can specify whether they act jointly, severally, or jointly and severally.
Attorneys appointed jointly must act together, which can provide an added layer of oversight but may lead to delays if they disagree or are not readily available. Attorneys appointed severally can act independently, which can be more efficient but carries a greater risk of decisions being made without consultation. A jointly and severally appointment offers flexibility but should be considered carefully in light of these trade-offs.
Enduring Guardianship
An attorney cannot make decisions about your lifestyle or healthcare. These decisions are made by a guardian.
Under an Enduring Guardianship appointment, you can nominate a trusted person to make personal, lifestyle and medical decisions on your behalf if you lose capacity. Alternatively, if no appointment is in place, a guardian may be appointed by the NSW Civil and Administrative Tribunal or the Supreme Court.
A guardian’s role may include making decisions about medical treatment, accommodation, and support services.
As with appointing an attorney, it is important to carefully consider who you appoint as your guardian. You should choose someone who understands your values, is willing to act, and is able to make decisions in your best interests.
Final thoughts
Enduring Powers of Attorney and Enduring Guardianship appointments are key components of effective estate and succession planning. They can have significant long-term consequences, so it is important to ensure they are properly tailored to your circumstances.
Our lawyers can guide you through the process, help you weigh your options, and prepare documents that reflect your wishes. Contact Harris Freidman today to get started.