Power of Attorney
Power of Attorney
Power of Attorney
Definition:
A Power of Attorney is a legal document allowing someone to make legal and financial decisions on your behalf.
Types:
- General Power of Attorney: Valid only while you can make your own decisions; becomes invalid if you lose capacity or pass away.
- Enduring Power of Attorney: Remains valid even if you lose capacity; becomes invalid if you pass away.
Key Points
- Registration: Required if dealing with real estate in NSW; otherwise optional but recommended for ease of use.
- Interstate Recognition: Valid across Australian states and territories if compliant with state laws; not recognized if made overseas.
- Storage: Keep the original document in a safe place; inform your attorney of its location.
- Revocation: Can be revoked by informing relevant parties in writing and destroying the original document.
Why have a Power of Attorney?
- Maintain Control: Decide who makes decisions on your behalf and any restrictions.
- Avoid legal complications: Prevents the need for costly litigation.
- Peace of Mind: Assurance that your affairs can be handled if you are not available or unable to act.
- Financial Security: Attorney is empowered to take decisions and manage your affairs while you are away e.g pay bills, protect your assets, manage finances.
Risks of not having a power of attorney
- Financial Vulnerability: your finances might not be managed properly, in the event you are unavailable or unable to do so.
- Potential disputes: Lack of clear instructions can lead to conflicts about who should take responsibility and what decisions should be made on your behalf.
- Stress and uncertainty: Your loved ones may experience stress and uncertainty without clear guidance.
