ARTICLE - Powers of attorney

A power of attorney is a legal document given by one person (the principal) to another person (the attorney). It enables the attorney to act on behalf of the principal. Any mentally sound person may give a Power of Attorney. You cannot give a power of attorney if you are mentally incapable.

An attorney can only act on behalf of another person in relation to financial matters. This can include looking after money or property. It does not allow the attorney to make medical or lifestyle decisions on behalf of another person. To give somebody else the power to make medical or lifestyle decisions, it is necessary to appoint a guardian rather than an attorney.

A power of attorney can take several forms, including:

• general power of attorney - does not have any limitations
• limited power of attorney - limited to a particular defined territory, for example, within New South Wales only. Alternatively, it can be limited to a particular period of time, eg for a period of one year. It can also be limited to specified circumstances, eg relating to the sale of real estate or the return of the principal from overseas.
• enduring power of attorney - enables the attorney to act on the principal’s behalf even if the principal later becomes mentally incapacitated.

The power of attorney must be signed and witnessed. If it is to be used for property transactions or bank account transactions, it should also be registered at the Land and Property Information Office.

If a person becomes mentally incapacitated and does not have a power of attorney, his/her affairs will possibly then be passed onto the Protective Commissioner. This means that their affairs will be managed by a government official.

Granting powers of attorney to somebody will not stop you from dealing with your own affairs, if you are still capable of doing so. More than one attorney can be appointed. You can appoint people jointly (all must sign documents) or separately (each may sign).

Knowing you have a trusted attorney capable of dealing with your financial affairs can give you peace of mind. A solicitor is the best adviser to ensure your requirements are covered. A solicitor can also assist you in striking the proper balance between convenience and caution.

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Contact Kerrisons for more information relating to powers of attorney: Phone 02 4655 7066 or email us today.