Far too many retired Australians do not have a fall-back plan should they physically or mentally decline and become unable to make decisions for themselves.
More retired Australians need to have a financial Enduring Power of Attorney to avoid "unnecessary family conflict", Wills and estates accredited specialist at Equity Trustees Limited (EQT) Anna Hacker has warned.
"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 a person'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.
Just like a person would divide assets in a will, the granter should explain what they would like to happen if they should mentally or physically deteriorate.
They should nominate a person who is thoroughly acquainted with 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.
The granter can appoint one or more people with financial Enduring Power of Attorney — usually the same person or people nominated as executor in the Will, though it does not have to be.
The people nominated can make decisions on finance or property, which are legally binding. But they cannot make decisions on medical treatment.
