Far too many retired Australians do not have a financial enduring power of attorney, which can lead to problems if they become physically or mentally incapacitated, according to Wills and estates accredited specialist at Equity Trustees Limited (EQT) Anna Hacker, who warned it could lead to "unnecessary family conflict".
"I would suggest that having a financial Enduring Power of Attorney is as important as a Will for the retired, and if they don't already have one every Australian should sign a financial Enduring Power of Attorney when they retire," she said.
While a Will sets out instructions on what happens to someone's assets when they die, an Enduring Power of Attorney lets the nominated attorney or attorneys take action if the granter can no longer do it for themselves.
The granter should set out what they want to happen if they become incapacitated.
"The people nominated can only make decisions to do with finance or property and in these areas all actions taken are legally binding.
"However, the financial Enduring Power of Attorney does not cover other areas such as decisions about care or medical treatment," Hacker said.
The persons nominated should have comprehensive knowledge of the granter's financial affairs.
"It is important that all cards are placed on the table by anyone nominating an Attorney to act, to prevent costly oversights. Without this knowledge, bills may not be paid, share entitlements lost, and property forfeited," Hacker said.
