Power of Attorney refers to the authorisation given to your nominated “attorney” to represent your financial and property decisions. It is important to note that the decisions made by an attorney will be legally binding, to the same effect as decisions made by yourself. It is therefore important to make an informed decision before entrusting this responsibility, and a Will Lawyer can assist to ensure this as part of your estate planning.
The role of a Power of Attorney is only activated once you lose ‘decision-making capacity’ in a legal context, or when you specify you would like it to commence operation.
Types of Power of Attorney
The two different types of Power of Attorney that can be arranged are – general and enduring.
General Power of Attorney
A General Power of Attorney is typically only used for a specified period of time. For example, if you are planning a vacation and would like your financial affairs to be handled in the meantime, or would like important paperwork to be signed that you cannot be physically present for, this would fall to the role of a General Power of Attorney. Note they only apply when you are of sound legal mind and mentally capable to make rational decisions.
Enduring Power of Attorney
An Enduring Power of Attorney plays are more permanent role and only ceases at the time of your death. It serves as a guarantee that your financial and property affairs will be attended to in the event of an unforeseen illness or injury that renders you incapable to make decisions for yourself.
Given the substantial role they play in your life, it is important to choose your Power of Attorney wisely. You must be confident in their level of capability, capacity, loyalty and understanding to your choices. This is difficult decision that often delays the process of estate planning, and therefore it is advisable to seek a Will Lawyer’s assistance.
How Can a Will Lawyer Help?
- Answer any general questions you have relating to your need for a Power of Attorney
- Inform your decision to choose the type of Power of Attorney in light of your individual circumstances by presenting viable, researched options
- Oversee compliance of legal regulations around appointing and accepting a Power of Attorney
- Provide insight from experience to give you the confidence to make the right decision for yourself
- Assist to compile a formal document of the responsibilities and scope of power held by your Attorney
For any questions or concerns regarding your Power of Attorney or estate planning in general, do not hesitate to contact our Estates Team at Matthews Folbigg Lawyers on 9635 7966 or email us at estates@matthewsfolbigg.com.au
