Powers of Attorney
Powers of Attorney relate to financial, property and contractual matters. A Power of Attorney is a written and signed document that you should have a lawyer prepare. Call us for help!
What is a General Power of Attorney?
Thisis created for a specific period, for example if the Principal is travelling overseas and needs to sell their home, then they can instruct their Attorney to sign all documents for the sale of the home. The general Power of Attorney is usually limited for a specific period and is suspended if the Principal loses their capacity or becomes physically or mentally ill.
What is an Enduring Power of Attorney?
An enduring Power of Attorney is one which operates even after the Principal has lost capacity or is mentally or physically unwell. The benefit for older people is that it enables them to choose one Attorney or joint Attorneys to manage their financial affairs as if they become incapable of doing so.
This avoids the need for an application to be made at the Guardianship Division | NCAT – NSW Civil and Administrative Tribunal or the Supreme Court to appoint a Financial Manager.
General Information – Powers of Attorney
Powers of Attorney relate to financial, property and contractual matters. A Power of Attorney is a written and signed document, whereby the “Principal” entrusts and confers power on another person, “the Attorney” to make financial decisions on the behalf of the Attorney.
The Attorney can sign cheques, deal with bank accounts, buy and sell property. The Attorney must act with good faith and always in the best interests of the Principal. The Attorney can be called to account for their actions and should keep records of all their dealings.
An enduring guardianship is a document which confers power on a “Guardian” to deal with the accommodation and health of the Principal. The Enduring Guardian operates at the time that the Principal loses capacity and not before. It will cease when the Principal dies or if it revoked by the Principal, whilst they have capacity.
To appoint an enduring guardian, the Principal must be over the age of 18 years and must understand what they are doing. The enduring guardian must be an adult and cannot be paid for their services to the Principal.