We can spend decades building our wealth, protecting our families, and planning for retirement. But there's one question most people avoid until it's too late: what happens if you can't make decisions for yourself?

Suffer a stroke, dementia, or a serious accident or illness, and life can change in an instant. Without the right legal framework in place, your family could face months (or more) of stress, legal battles, and uncertainty at the worst possible time. In Ireland, the decision-making supports system exists to prevent exactly this scenario, yet many people have never heard of it.

If you have assets (of any sort) that you believe are worth protecting, someone depending on you, or simply want control over your future care, this is one of the most important conversations you'll ever have!

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What Are Powers of Attorney in Ireland?

You'll be delighted to hear that it isn't another costly insurance policy! A Power of Attorney is simply a legal document that allows you to appoint someone you trust (called your attorney) to make decisions on your behalf. In Ireland, these fall under the Assisted Decision-Making (Capacity) Act 2015, which fundamentally changed how we approach decision-making when someone 'loses capacity'.

There are two main types:

•      Enduring Power of Attorney (EPA): Created while you have capacity, but only comes into effect if you lose capacity. This is the most important document for protecting you, your assets and your loved ones if you suffer that dementia, stroke, or serious illness or injury.

•     General Power of Attorney: Used when you have capacity but need someone to act for you temporarily. Perhaps you're abroad or recovering from surgery. This expires if you lose capacity.

For wealth protection and long-term planning, an EPA is essential. It covers both personal care decisions(medical treatment, living arrangements) and property and financial affairs(managing investments, paying bills, selling property).

The Real-World Cost of Not Having an EPA

Here's what happens when someone loses capacity without an EPA in place:

Lets use the fictional scenario of John Jenkins, a 68-year-old fell from Ahascragh. He retired from his job 5 years ago, and has been having a blast with his wife, tearing around ireland and the continent in their lovel camper! He has €1.2 million in pension assets, €500k in deposits in his name, and a rental property. Then one day he suffered a severe stroke. He had no EPA.

His wife Mary couldn't access his bank accounts (which were in his name only), couldn't sell property to pay for care, and couldn't make decisions about his ARF withdrawals or investment strategy (again in his name only). She had to apply to the Circuit Court for a Wardship Order , a process that took 14 months, cost over €15,000 in legal fees, and required annual court reviews. During that time, investment decisions were frozen, rental properties fell into disrepair and tenant issues (we're laying it on here!) , and tax planning and ARF withdrawal & investment opportunities were lost.

With an EPA, Mary could have managed everything immediately, preserved their wealth, and focused on John's care instead of fighting through the courts and administrative hassle and costs.

The wardship system is expensive, slow, and strips away your autonomy.

‍Wardship can cost tens of thousands and takes control away from your family.

An Enduring Power of Attorney costs a fraction, and saves an ocean of time, hassle and angst.

Who Should Be Thinking About This?

If you answer yes to any of these questions, you probably need to get an EPA:

•      Do you own property, investments, or have a pension pot worth over €100,000?

•      Are you approaching retirement or already retired?

•      Do you have rental properties, a business, or complex financial affairs?

•      Do you have dependents who rely on your financial decisions?

•     Are you concerned about dementia or serious illness or injury as you age?

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The more assets you have, and the more complex your financial life, the more critical this becomes.

But even if you own your family home, an EPA protects your spouse from unnecessary legal burdens.

What Decisions Can Your Attorney Make?

You have complete control over what powers you grant.

An EPA can cover:

Personal Care Decisions:

•      Where you live (home, nursing home, assisted living)

•      Medical treatment and healthcare choices

•     Day-to-day care and support services

Property and Financial Affairs:

•      Managing bank accounts and investments

•      Draw-down and investment or strategy decisions on your ARF and/or State Pensions

•      Selling or renting property

•      Paying bills, filing tax returns, dealing with Revenue

•     Making gifts or managing your estate planning

You can set restrictions if you wish. For example, you might allow your attorney to manage your day-to-day finances but require court approval before selling your home etc. The key is to ensure clarity. Spell out exactly what you want, and make sure your attorney understands your values and wishes.

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Choosing Your Attorney: The Most Important Decision?

Your attorney will have significant power over your life and your finances!

Choose poorly, and you risk financial abuse or neglect.

Choose wisely, and you'll have peace of mind knowing you and your legacy are protected.

Who to consider:

•      Spouse or partner: The most common choice, provided they're capable and trustworthy (which one would hope to be the case!)

•      Adult children: Often a good option if your spouse is elderly (like you?) or unwell. Consider appointing two children jointly to avoid conflict.

•     Trusted friend or professional: If family dynamics are complicated or you have no suitable relatives.

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What to look for:

•      Someone who understands your values and wishes

•      Financial literacy and good judgment

•      No conflicts of interest (though difficult if it's someone who stands to inherit from you?!)

•     Willingness and ability to take on the responsibility

Many people appoint two attorneys jointly for financial affairs. For example, one child who's financially savvy and another who's locally based, for example. This provides checks and balances while sharing the workload.

The Registration Process and Safeguards

Ireland's system includes important protections to prevent abuse:

•      The Decision Support Services website has a great Step by Step guide to show what you need to do and when in order to put the EPA in place. View this here: Steps for making your Enduring Power of Attorney | Decision Support Service

Before an EPA is registered, notice must be given to specified family members. This gives them a chance to object if they have concerns about the attorney or your capacity.

•      Medical certification: A registered medical practitioner must confirm you lack capacity before the EPA can be triggered

•      Registration with the Decision Support Service: Once you lose capacity, your attorney must register the EPA with the DSS. Only then can they exercise their powers.

•     Ongoing oversight: The DSS monitors registered EPAs and can investigate complaints of abuse or mismanagement.

These safeguards mean creating an EPA isn't a blank cheque. It's designed as a carefully supervised framework designed to protect vulnerable people while respecting their wishes.

Common Mistakes to Avoid

1. Waiting until it's too late

You must have mental capacity to create an EPA. Once dementia progresses or you've had a serious stroke, it's too late. Many people agree that it makes sense to have an EPA but often say that they'll sort it out when they're older! Unfortunately for some, the opportunity has passed.

2. Not discussing it with your attorney

Appointing someone without telling them is a recipe for disaster! Have an honest conversation about your wishes, your values, and what you expect from them.

3. Failing to update it

Life changes of course. Your appointed attorney might die, become unwell, or your relationship might fall assunder for some reason (it happens!). Review your EPA every few years, particularly after major life events like divorce, death of a spouse, or family fallouts.

4. Using DIY templates without legal advice

An improperly drafted EPA can be invalid or cause confusion. This isn't the place to save a few hundred euro. We recommend you get a solicitor involved. The cost is minimal compared to the peace of mind and future clarity.

How This Fits Into Your Broader Estate Plan

An EPA isn't a replacement for a Will, it's a complement. Your Will determines what happens to your assets after you die. Your EPA determines what happens while you're alive but incapacitated.

Together with your will and tax planning strategies, an EPA forms the foundation of a comprehensive wealth protection plan:

•      Will: Distributes your estate after death

•      EPA: Manages your affairs during incapacity

•      Tax planning: Minimises inheritance tax and maximises wealth transfer

•     Life insurance & pension planning: Provides financial security for dependents

If in force and being 'used', your financial advisor should be working with your attorneys to ensure these pieces fit together seamlessly. For instance, if your EPA allows your attorney to make gifts, your financial advisor can guide them on how to do so tax-efficiently using your annual CAT exemptions.

What to Do Next

If you don't have an EPA:

•      Book a consultation with a solicitor. Many solicitors specialising in elder law or estate planning can draft an EPA within a few weeks.

•      Identify your attorney(s). Think carefully about who you trust and have that conversation with them.

•     Discuss with your financial advisor. Make sure your EPA aligns with your broader financial and retirement plan.

If you already have an EPA:

•      Review it. Is it still current? Are your attorneys still the right choice?

•      Make sure your attorneys know where the original document is kept and understand their responsibilities.

•     Ensure your family knows it exists. There's no point having an EPA if no one knows about it!

Final Thoughts: Control, Dignity, and Peace of Mind

None of us like to think about losing our mental capacity. It feels too distant, too morbid, too uncomfortable to be addressed right now, for many of us! But the reality is that dementia affects 1 in 10 people over 65 in Ireland, and strokes can happen to anyone at any age.

Creating an EPA isn't planning for failure, it's taking control of what happens if something nasty visits us.

It's ensuring that if the worst happens, your family isn't left scrambling through the courts while you're unable to help them. It's protecting the wealth you've spent a lifetime building. And most importantly, it's safeguarding you loved-ones, your dignity and ensuring your wishes are respected when you can't speak for yourself.

This is one of the simplest, inexpensive and most powerful steps you can take to protect yourself and the people you love. The question isn't whether you need an EPA, it's whether you'll act before it's too late.

Need help integrating your Powers of Attorney into your retirement and estate plan?

At Informed Decisions, we work with clients to ensure their financial plans account for every scenario, including incapacity. We coordinate with your solicitor to make sure your EPA, Will, and investment strategy work together to protect your wealth and your family.

Get in touch for a confidential consultation.

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