Making a Will and Power of Attorney: Why Bother and Where Do You Start?

Making a will or EPA?

There are two distinct ways in which a person can hand over authority for their assets or property to another person in Australia. 

That is, either by making a will or creating an Enduring Power of Attorney (EPA). 

Most people understand the concept of making a will. It is a legal document that sets out how people should handle your assets and properties after you die.

On the other hand, power of attorney is less well-understood. 

An EPA is a legal agreement that allows you to appoint someone to act on your behalf and make financial decisions about your assets while you are still alive, should you lose the capacity to do so yourself. 



The named person is usually a family member and is called an “attorney”. This must be a person that you trust to make the right decisions for you. 

An EPA becomes operational where you, as the owner of the property, lose legal capacity to make financial decisions. 

It is limited to financial or property decisions and does not extend to social, lifestyle or health decisions.

Why is making a will or an EPA important?

The importance of making a will or creating an Enduring Power of Attorney should not be underestimated. 

Firstly, these documents give you the right under the law to appoint someone to act on your behalf. 



Hence, they enable you to decide on the use and management of your assets and property in your absence.

The primary importance of a will is to declare how you would like your property or assets to be distributed after you die. 

For instance, if you leave behind children who are not yet of an age to inherit your property, you can clearly state in the will how the property will be transferred to them. 

Without a legal will, the state has full authority to determine how the assets you leave behind should be distributed. Most people would rather decide for themselves.

How to prepare a will

Making a will requires you to follow specific rules in law. If they are not followed, the will may be rendered invalid. 

So, you will need the assistance of a Perth lawyer when preparing a will. A good estate planning or property lawyer will guide you on the correct terms to ensure that there is no ambiguity in the will. 

Your business adviser should be able to help you locate a good lawyer, if you are struggling to find one. 

Speak to us at Ascent Accountants if you need pointing in the right direction.