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Peter Townsend

Traps in enduring power of attorney and super

Be certain that your EPOA sets out clearly and fully what you want or don’t want your attorney to be able to do with your retirement nest egg.

The “enduring power of attorney” was developed to get around the annoying problem that under the common law, a power of attorney ended when the person’s capacity to grant the power ended (due to dementia or substantial chronic ill-health).

Medical advances are extending our physical life but not yet our mental acuity, so there are many people living longer with dementia needing a valid power of attorney during that period. So the EPOA was born in all states and territories in Australia. Every adult should have one.

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Peter Townsend is principal of Townsend Business & Corporate Lawyers.

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    Original URL: https://www.afr.com/wealth/personal-finance/traps-in-enduring-power-of-attorney-and-super-20210726-p58cu9