Month: May 2026

If you’ve taken steps to put your affairs in order, you might believe your inheritance planning is sorted, especially if you’ve appointed an Enduring Power of Attorney (EPA) for peace of mind. But when dementia enters the picture, even well-intended plans can fall apart. Retirement planning in Australia is complicated enough without unexpected legal battles and family conflict. Missteps around powers of attorney and family dynamics can derail your security and legacy if you’re not careful.

Here’s what you need to know to avoid the most common mistakes in inheritance planning for families facing dementia:

1. Choosing Attorneys Without Considering Family Dynamics

Many people assume that naming close family members, like a spouse and adult child, as joint attorneys will ensure their best interests are protected. But if those individuals have complicated relationships, this setup can quickly turn into a battleground. When trust is shaky or old resentments linger, joint decision-making can backfire. The result? Costly court battles and delays, just when you need support the most.

Real-Life Example:

Joe, in his late eighties, appointed his second wife and daughter from his first marriage as joint attorneys under his EPA. When dementia struck, his daughter challenged her stepmother’s decisions in court, leading to the EPA being revoked. Joe lost his independent representation, and all his financial affairs fell under state control.

How to avoid this mistake:

• Think beyond titles. Choose people who have a proven track record of working together, not just those closest by blood or marriage.
• Communicate intentions clearly, explain your choices in writing to all family members to minimise suspicion and resentment.
• Consider appointing a professional or independent attorney if family dynamics are strained.

2. Not Understanding the Legal Powers You Grant

There’s a big difference between joint and several powers of attorney. Giving multiple people the ability to act independently (“several”) can create confusion, conflict, or even abuse of power. If disputes arise, a court may step in, stripping all attorneys of their authority and handing control to a government body. This can freeze your finances at the worst possible time.

Real-Life Example:

After the EPA was revoked in Joe’s case, neither his wife nor daughter could act on his behalf. All financial decisions, including those for the family’s self-managed super fund (SMSF), required approval from the State Administrative Tribunal. Delays put the fund’s compliance; and Joe’s retirement income, at risk.

How to avoid this mistake:

• Get tailored legal advice before signing any EPA, understand exactly what powers you’re granting and the risks involved.
• Review your EPA regularly to ensure it aligns with current laws and your family situation.
• Ask your adviser about the implications for SMSFs; trustee rules are strict and non-compliance can have severe tax consequences.

3. Underestimating the Financial and Emotional Toll of Legal Disputes

It’s easy to assume that legal safeguards will prevent family struggles, but when emotions run high, disputes can drain both finances and wellbeing. Legal challenges over powers of attorney can cost tens of thousands in fees, delay critical decisions, and damage relationships beyond repair. Inheritance planning is about more than documents, it’s about family peace and your own dignity.

Real-Life Example:

Both Kerry and Sue, Joe’s wife and daughter, spent large sums on legal fees during their court battle. In the end, neither could help Joe directly, and the family faced more stress and fewer options than before.

How to avoid this mistake:

• Talk openly about your wishes, have courageous conversations with all affected parties before dementia or incapacity strikes.
• Involve neutral mediators or professional advisers to facilitate difficult discussions.
• Document decisions and reasons to reduce misunderstandings and future disputes.

The Bottom Line: Empower Your Future Self

Inheritance planning for dementia isn’t just about ticking legal boxes. It’s about protecting your autonomy, your family’s relationships, and your legacy. If you’re unsure about the best approach, or if your situation involves blended families or complex assets like SMSFs, seek independent advice from experts who understand the landscape.

For guidance on finding a trusted adviser, visit the financial advice page. Don’t leave your future to chance.

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Vanessa Stoykov | Courageous Conversations About Money

Inheritance planning in Australia is never just about money, especially when emotions are raw and time is short. If you’re supporting a loved one in palliative care, the last thing you need is added financial stress or family disputes. Yet, it’s exactly at these moments that mistakes can happen, sometimes with devastating consequences for everyone involved.

Rushing financial decisions, especially during end-of-life care, can backfire. Here are the three biggest mistakes people make when handling inheritance planning in Australia; and the steps you can take to protect yourself and your family.

1. Moving Money Without Proper Authority

It might seem practical for someone to suggest transferring a parent’s money before they pass, but this is a legal and ethical minefield. If your loved one cannot give clear, informed consent, any transfer can be challenged later, regardless of intent. Trying to ‘shortcut’ the process rarely ends well.

Many people underestimate how strictly banks and the law interpret capacity and consent. End-of-life is not the time for informal workarounds. It’s the time to follow the will and legal processes already in place.

Real-Life Example: Sarah, 54, faced pressure from her brother to move their mother’s savings into his account before she died. Their mother was unconscious and unable to approve anything. After giving in, the move was later contested by other family members, leading to a lengthy and expensive legal dispute that fractured their relationship for years.

How to avoid this mistake:

• Respect boundaries, If your parent cannot give informed consent, don’t move money under any circumstances.
• Follow the will, Trust the instructions already set out by your loved one.
• Get professional advice, Speak to an estate lawyer or independent adviser before taking action.

2. Ignoring Legal Process to ‘Make Things Easier’

Probate can feel like red tape, but it exists to protect everyone’s interests. Bypassing probate by moving assets outside the estate may seem faster, but it exposes families to disputes, challenges, and tax complications. Shortcuts now can lead to bigger headaches later.

Many people believe that acting quickly will reduce conflict. In reality, acting outside legal channels often creates confusion; and can even invalidate your loved one’s wishes as set out in their will.

Real-Life Example: Karen, 58, moved her father’s funds to avoid probate, thinking she was saving time. Months later, other beneficiaries contested the estate, resulting in frozen accounts and a court battle that lasted over a year.

How to avoid this mistake:

• Let probate do its job, It helps ensure the estate is distributed fairly and according to the will.
• Consult the experts, Estate administration professionals can guide you through the process.
• Keep clear records, Document all actions and decisions to avoid future disputes.

3. Letting Family Pressure Override Good Judgment

When a sibling or relative pushes for ‘urgent’ action, it’s natural to want to keep the peace, especially during an emotional time. But feeling uneasy is a sign your instincts are protecting you and your loved one’s wishes. Urgency around financial decisions is a red flag, not a reason to move faster.

Many people later regret giving in to pressure, especially if it leads to family rifts or financial loss. It’s okay to pause and say ‘no’ when something doesn’t feel right.

Real-Life Example: Lisa, 61, was pressured by her sister to sign documents she didn’t fully understand. By standing firm and waiting for advice, she avoided a financial mistake that could have cost her family thousands.

How to avoid this mistake:

• Trust your instincts, If you feel uncomfortable, pause and seek advice.
• Communicate calmly, Explain why you need to follow proper process.
• Involve a neutral third party, A professional can mediate and clarify any confusion.

Empowering Next Steps

If you’re facing these dilemmas, you’re not alone. Financial experts see these scenarios play out often, and support is available. Protecting your loved one’s wishes is not just your right, it’s your responsibility.

Before you make any decisions:

• Review the will and understand your role
• Pause before acting in haste, there’s rarely a need to rush
• Get independent, qualified advice

You can also access trusted help:

• Read more practical guidance at Vanessa’s Resources Hub
• If you need help finding an adviser, visit financial advice

Having a courageous conversation now can save heartache later. Your instincts matter, trust them.

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Vanessa Stoykov | Courageous Conversations About Money