Enduring Power of Attorney vs. Enduring Power of Guardianship: Key Differences
When planning for the future, understanding how decisions will be made on your behalf is crucial. In Western Australia, two common legal instruments come into play: an Enduring Power of Attorney (EPA) and an Enduring Power of Guardianship (EPG). While both involve decision-making authority, they serve distinct purposes and operate under different legal frameworks. Knowing the difference can help ensure your affairs are handled according to your wishes.
What Is an Enduring Power of Attorney?
An Enduring Power of Attorney is a legal document that allows you to appoint someone (your attorney) to manage your financial and property affairs if you lose capacity. This authority can take effect immediately or only if you become unable to make decisions for yourself.
Key aspects of an EPA:
Limited to financial and property matters.
Cannot be used for personal or medical decisions.
Remains valid even if you lose mental capacity.
Must be created while you have full legal capacity.
For a more detailed breakdown, visit our Enduring Power of Attorney Perth page.
Why Do You Need an Enduring Power of Attorney?
What Is an Enduring Power of Guardianship?
Unlike an EPA, Enduring Power of Guardianship is a legal arrangement where a person (the guardian) is appointed to make personal, lifestyle, and medical decisions if you lose capacity. This authority only takes effect when someone is no longer capable of making decisions for themselves.
Key aspects of an EPG:
Covers health, medical, and personal decisions.
Does not grant authority over financial matters.
Remains valid even if you lose mental capacity.
Must be created while you have full legal capacity.
If no EPA and no EPG is in place, loved ones may need to apply for guardianship and administration through the State Administrative Tribunal, which can create uncertainty and delays.
Can Someone Take Over Your Enduring Power of Attorney?
Why Choosing an EPA Matters
Without an Enduring Power of Attorney, your loved ones may have to navigate complex legal processes to manage your affairs, causing unnecessary stress and delays. Appointing an attorney in advance ensures a trusted person can handle your financial matters without court intervention. It also provides greater certainty, reducing the risk of disputes.
How Bechelet & Co Can Assist
At Bechelet & Co, we specialise in estate planning and provide tailored legal advice on Enduring Powers of Attorney and Enduring Powers of Guardianship. Our Perth-based legal team can help you draft an EPA and EPG that align with your wishes and safeguards your future should you become incapacitated.
Final Thoughts
Understanding the difference between an Enduring Power of Attorney and an Enduring Power of Guardianship is crucial for effective estate planning. By putting an EPA in place, you can protect your financial future and spare your loved ones from unnecessary legal hurdles. By putting an EPG in place you can ensure a trusted person can make sensitive decisions about your medical and personal matters. If you need assistance in setting up an EPA or EPG, Bechelet & Co is here to provide legal guidance tailored to your needs.