Thinking Of Appointing An Enduring Power Of Attorney In NSW ?
What is an enduring power of attorney, who should you appoint and what should you consider before seeing your lawyer?
A lot of clients ask me about enduring powers of attorney.
An enduring power of attorney is a legal document that allows you to appoint one or more people to act on your behalf in relation to your financial and legal affairs.
Importantly, that authority can continue if you later lose the mental capacity to manage your own affairs.
It is different from a general power of attorney, which can be used where you only want to give someone authority for a limited period or purpose - for example, while you are travelling overseas.
It is also different from appointing an enduring guardian, which is concerned more with decisions about your health, lifestyle and personal affairs.
Who should you appoint?
The most important thing is to appoint someone you trust.
After all, that person may end up looking after your financial and legal affairs as if they were you.
Often people appoint their partner, an adult child, a sibling, another family member or a trusted friend.
Depending on your circumstances, you can appoint more than one attorney.
They may be required to act together, or you may allow them to act separately.
You can also appoint a substitute if one of your attorneys cannot or no longer wants to act.
What powers should your attorney have?
You also need to think carefully about the powers you want to give your attorney and whether there should be any conditions or limitations.
Before an attorney can exercise their authority, they must first accept their appointment by signing the document. The power can then operate immediately, from a particular date, or when a particular event occurs, depending on how the document is prepared.
Your attorney also takes on responsibilities.
They are required to act honestly and in your interests, keep your money separate from their own and properly account for what they do.
What should you think about before seeing your lawyer?
The principles behind an enduring power of attorney are fairly straightforward.
The important questions are who you appoint, whether you need a substitute, when the power commences, what authority you give them and whether any limitations should apply.
Those decisions depend on your personal circumstances.
These are the things worth thinking about before you sit down with your lawyer to prepare the document.
