Powers of Attorney are used to appoint a trusted individual to make important financial decisions when you cannot. There are a number of forms of these legal documents which can be used depending on the circumstances that arise. A general Power of Attorney is used to appoint someone to make decisions on your behalf for a specified time period – For example, if you travel overseas you cannot manage your financial affairs. However, if you lose your capacity to make decisions permanently, this appointment will become invalid.
An Enduring Power of Attorney continues to apply even when you can no longer make financial decisions for yourself. An Enduring General Power of Attorney will persist even when you are legally incapable of making financial decisions. Creating an Enduring Power of Attorney is equally as important as making a Will.
An Enduring Power of Attorney does not permit an individual to make lifestyle, personal or treatment decisions on your behalf. In order to appoint someone to do this, you need an Enduring Power of Guardianship.
Benefits
By creating an Enduring Power of Attorney, you can appoint someone you trust to manage your financial affairs either when you lose capacity or immediately. This will enable you to choose someone who is reliable and financially astute. A Power of Attorney also minimizes financial hardships that may arise, if you can no longer make reasoned decisions or attend vital meetings and institutions due to physical disability. These simple documents will ensure that your financial assets are managed with much continuity as possibility.
You can also choose to impose limits of what activities and decisions your appointed attorney can carry out on your behalf. It is possible to outline how you would like your estate to be managed, which adds to the control you have over your financial affairs. Your appointed attorney can also maintain confidentiality in respect to your investments, property and other financial matters.
An Enduring Power of Attorney is a necessary document for anyone who wishes to ensure their financial affairs are in order. By creating an Enduring Power of Attorney, you avoid an administrator being appointed against your wishes. More importantly, you can have a say in who you would like to manage your estate and how.
To be an Enduring Power of Attorney, it is necessary for a prescribed witness, such as a solicitor, to explain the effect of the Power of Attorney to the principal before it is signed, witness the signature by the principal and complete a certificate under s.19 of the Powers of Attorney Act, 2003 (NSW).
If it is proposed that the Power of Attorney will be used to sign documents that affect real estate, the Power of Attorney must be registered at the office of Land & Property Information NSW.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
