Do you need an Enduring Power of Attorney?

A power of attorney is a power for one person to sign on behalf of another.  Ordinarily, your signature is needed to write a cheque, sign a legal document or give an authority.  When you give someone else a power of attorney, you give that person power to do those things on your behalf.

A normal power of attorney ends when you revoke it, when you die or when you become mentally incapable.

An enduring power of attorney does not end when you become mentally incapable.  Indeed, it is designed to help you to manage your affairs even if you do become mentally incapable.  Without an enduring power of attorney, someone must apply on your behalf to the State Administrative Tribunal for the power to manage your affairs and this application both takes time and costs money.

An enduring power of attorney gives power only in relation to financial and property decisions.

Because an enduring power of attorney allows your chosen attorney to make decisions for you when you are no longer able to make them for yourself (or to stop your attorney from making them), they are very powerful documents.  You must only appoint people you trust.  For example, even a child of yours may prefer to put you in a care facility and sell your home to pay for it.

In addition, you must consider whether to impose any limitations.  For example, you may prefer:

  • that the power extends only to a particular bank account; or
  • does not extend to a particular asset, such as your home.

Even though an attorney is under a duty to act in your best interests, this still allows a wide discretion.  In addition, there may be no third party who is willing and able to supervise your attorney’s decisions.

The attorney’s duty to act in your best interests limits his or her ability to make gifts on your behalf.  If you wish the attorney to have this power, please consider carefully what limits you wish to place on it.

You do not need to register the enduring power of attorney unless you are the registered owner of land in Western Australia.  However, if you are, the enduring power of attorney cannot be used for that land unless and until it is registered.

In addition, registration means that a copy of the enduring power of attorney is always available in a form acceptable to many institutions.

Whenever you register the enduring power of attorney, there is a fee payable to Landgate (currently $178.20 each).  However, unless you register it within 3 months of signing it, you will also have to sign a statutory declaration that it has not been revoked. 

For further information see the Guide to Enduring Powers of Attorney published by the Office of the Public Advocate at https://www.publicadvocate.wa.gov.au/E/enduring_power_of_attorney.aspx?uid=4607-1285-4846-1893

Court