Assuming your spouse can just access your cash?
Let’s say you manage all the household finances and suddenly you lose capacity. You’d think common sense prevails and your spouse can just step in and take over, right? This one doesn’t fare too well in reality, as without an Enduring Power of Attorney (EPA), banks can completely freeze your funds. In a recent real-world case, a wife was locked out of her accounts for eight months, leaving her unable to pay for basic groceries, car repairs, or even a trip to the dentist while she waited on the courts. Because they didn’t have an EPA or children, the court even had to track down the husband’s brother in Australia to get his thoughts. When you look at the variables, getting an EPA(Enduring Power of Attorney) sorted before you need it is an absolute no-brainer.
An EPA, enables another person to be able to act on your behalf and make decisions for you. You can set parameters on types of financial affairs it covers. Along with the conditions or the people that can confirm that you are physically and mentally able to take control over your affairs fully.
Joint property vs having a proper Will
Looking at what happens when someone passes away, you might think having a jointly owned property means you are fully covered. But if you die without a will, things get messy fast. Your surviving partner will have to apply for “Letters of Administration,” a lengthy court process that can drag on for eight months. Even with a Will, going through probate can take months. Without these documents in order, your spouse won’t be able to easily refinance loans or transfer property titles, as those actions still require joint signatures.
The $1,500 setup vs the $15,000 headache
This makes a lot of sense when you look at the numbers. Normally, experts suggest getting your asset protection in place by age 45 or 50. Setting up an EPA and a Will for a couple costs around $1,500. If you steer away from doing this now, your family could be footing a $15,000 bill to go through the court system later. That is 10 times the cost, plus a massive headache and delay for your loved ones when they are already distraught. So, if you want to keep your family’s management of funds clean and tidy, run this past your lawyer and get it sorted now.
