Yes ... you probably do, especially if you are in perfect health right now.

The loss of capacity can be sudden, such as from an accident or stroke, or it can be gradual, such as from dementia. Under Queensland Law, a mentally incapacitated adult is not allowed to make their own important decisions.

Your Enduring Power of Attorney must be prepared while you are of sound mind.  Often the document isn’t used unless you have first lost your mental capacity.  Your Enduring Power of Attorney:-

·         Appoints a decision-maker of your choice.

·         Lets you control (to a certain extent) the decision making.

·         Lets you authorise and facilitate transactions that might otherwise be prohibited or difficult to arrange.

Don’t assume that your spouse, or next of kin, can automatically make every decision for you, if you become mentally incapacitated.  They can make some decisions, but not all, unless you have already authorised them to do so in your Enduring Power of Attorney.   If you do not want your legal spouse or next of kin to make any decisions about you, at all, then I strongly advise that you prepare an Enduring Power of Attorney.

Some other reasons to prepare an Enduring Power of Attorney include:-

·         To establish rules necessary for running a business or investments.

·         To ensure that your health preferences are recorded, such as to decline blood transfusions or invasive surgery, or if you prefer alternative medicines.

·         To authorise a promised gift, repayment of a loan, or the maintenance of a person who is not strictly dependent on you.

·         To create rules about assets that you wish to preserve or ‘quarantine’ to enable directions in your Will to be carried out after you die (but, you need to be careful doing this as your assets may need to be sold if you need extra money for your personal care).

 

You should also ask for advice about ‘conflict transactions’ if you, and the person/s you have appointed as your attorney/s:-

·       Live together, (or plan to live together if you can’t live alone).

·       Have a family business, mutual assets, or a mutual investment.

·       Have private loans between each other, or your companies.

·       Want to buy, or sell, or transfer assets between each other.

 

Be aware that the laws are different after a person turns 18.  If a ‘child’ over 18 years old becomes mentally incapacitated in an accident their parent(s) cannot automatically step in and organise their child’s financial arrangements.  All young adults should prepare a basic Enduring Power of Attorney which can be reviewed as needed.

If you cannot afford a Lawyer then you can contact the Public Trustee, or buy a ‘blank’ Enduring Power of Attorney form at the post office.  Once again, think carefully before choosing to rely upon these options because there are many issues to think about when preparing your Enduring Power of Attorney, particularly because our lives and our needs vary as we get older.  The blank form can appear to be deceptively simple! Because the way an Enduring Power of Attorney is written affects you while you are still alive, and could affect your loved ones in the future, it is a good idea to get professional guidance and advice.