What's in a Power of Attorney and why you need to think about having one?
The N.S.W. Power is a statutory form of about 1 page long whereas the ACT power is several pages. Either document can be provided to you at your request.
What should be in the Power -
- Will you appoint your spouse or family member an Attorney or perhaps even your lawyer? You need to have utmost faith in your Attorney. If you have two Attorneys, are they to act jointly or may they act individually?
- Do you give the Attorney full Powers, specific (eg. to sell your home) or limited Powers. If an Attorney is to benefit from a transaction, then the Attorney must be specifically authorised to benefit.
- When is the Power to commence - immediately on signing, on a given date or only when you are incapacitated? This last option will require medical evidence and may lead to unnecessary costs for doctor's reports.
- Will you pay the Attorney to act for you?
- If you are incapacitated, will your Attorney have Power to decide where you live, when you go on holidays or what medical treatment you should receive?
- Can medical treatment be withheld on the say of an Attorney who may also be a beneficiary under your Will?
Whatever you decide upon, it is very important that an Attorney keeps his / her /their affairs totally separate from those of the donor. The Attorney must act in good faith and unless specifically authorised, must not benefit from the Power!
A Power of Attorney does not have to be in continuous use by an attorney. If you make trips overseas or interstate, it may be handy to leave a power for your wife or child to act for you. Likewise if you are going to have a serious medical operation that may have you 'out of action' for some time, then you should consider one.
Anyone in business should have one. If you are the sole operator of a business and you were in a coma for some weeks after an accident, your business may be ruined because there is not anyone to look after the business in a legal sense.
Although it may be possible to have someone appointed as your guardian or manager under other laws, a Power of Attorney is a quick and economic way of ensuring that your absence does not hinder the administration of your affairs.
If you have any further questions, please visit the virtual office to send us a note.
