Many people put off making a Will or setting up Enduring Powers of Attorney for a variety of reasons, some of which may be:
What many people do not realise is how much harder and more costly it can be to sort matters out if someone dies without leaving a Will. If they hold a property title in their sole name or as a tenant in common (ie as to a specific share of the property) then it cannot be dealt with (sold or transferred) unless Letters of Administration are granted by the High Court. If they have money or investments with a balance of over $15,000 then again, Letter of Administration will be required. A life insurance policy or superannuation fund will also require Letters of Administration before any payout is made. Obtaining Letters of Administration is a lot more complicated that applying for a grant of Probate if the deceased had left a Will.
Then there is the matter of how the deceased person's assets are distributed if they have not left a Will. In that case the distribution is governed by the Administration Act 1969 and it all depends on which family members outlive the deceased as to how that distribution is made. What the Administration Act provides for might not necessarily have been what the deceased would have wanted.
None of us can predict what is around the corner as far as unexpected events are concerned. Anyone's life can change dramatically without warning.
We believe everyone over 18 should have EPAs in place — whether young or old. While you are still mentally capable, you should do it now. People tend to think that only the elderly are likely to need someone to manage their affairs, but anyone can become mentally incapable at any age. An accident can leave you brain damaged, a stroke can leave you mentally and physically disabled, and conditions such as Alzheimer's or dementia can strike people at a relatively young age.
So, as you should have a current Will, it is just as important to have EPAs in place. Once you've done them, you can bottom-drawer them and (almost) forget about them. You never want to have to use them but you will have peace of mind knowing that they are there.