Power of Attorney - Parramatta

What is a Power of Attorney?

A Power of Attorney is a legal document that allows you to appoint a trusted person - known as your attorney - to make decisions and act on your behalf in relation to financial and property matters.

If an attorney is appointed, this does not mean that the individual has given away their own right to make decisions. That individual can continue to make their own financial decisions and deal with their assets. However, if they become unable to do so then their attorney can do so for them.

Depending on the type of Power of Attorney you put in place, this authority may continue if you lose the capacity to make decisions for yourself.

Your attorney may be authorised to manage matters such as:

1. bank accounts and other financial affairs;
2. buying, selling or managing property;
3. paying bills and expenses; and
4. entering into financial or legal transactions on your behalf.

It is important to appoint someone you trust to act honestly, responsibly and in your best interests. Your attorney may be a family member, close friend or another suitable person who understands the responsibilities involved and is willing to accept the role.

Because an attorney can be given significant control over your finances and property, careful consideration and appropriate legal advice are essential.

A Power of Attorney may end in a number of circumstances, including when:

1. you revoke it while you have the legal capacity to do so;
2. your attorney resigns, dies or otherwise becomes unable to act;
3. you or your attorney become bankrupt, where bankruptcy affects the authority granted;
4. a court or tribunal terminates the appointment;
5. you die, at which point your Will and the administration of your estate take effect; or
6. you lose decision-making capacity and the document is not an Enduring Power of Attorney.

 

There are two (2) types of Power of Attorney:

1. General Power of Attorney - Usually for a specified period, purpose or transaction, or while you remain capable of managing your affairs
2. Enduring Power of Attorney - As specified in the document, such as immediately or after a particular event

General Power of Attorney

A General Power of Attorney, sometimes called an ordinary Power of Attorney, authorises another person to manage specified financial and legal matters while you retain decision-making capacity.

It may be useful when you:

• are travelling or living overseas;
• need someone to complete a particular property transaction;
• are temporarily unavailable because of illness or another circumstance; or
• want assistance managing certain financial affairs.

Because it does not continue after you lose capacity, it is generally unsuitable as the sole document for long-term incapacity planning.

Enduring Power of Attorney

A power of attorney that continues to have effect, despite the grantor’s mental incapacity is an enduring power of attorney. An Enduring Power of Attorney authorises your attorney to manage financial and legal matters and, importantly, can continue operating if you later lose decision-making capacity.

It is commonly used as part of an estate and succession plan because it allows a trusted person to manage matters such as your bank accounts, bills, investments and property if you become unable to do so yourself. The attorney must accept the appointment, and the document is subject to specific witnessing requirements.