As part of your estate planning, or when making a will, we generally recommend our clients also consider putting in place a power of attorney.
A power of attorney is a legal document that gives a trusted person (your attorney) the legal authority to act for you in relation to your legal and financial affairs.
By making a general power of attorney you can specify the things your attorney may deal with, when the power of attorney comes into effect, and when it will end. A general power of attorney might be useful to:
- appoint somebody to help out with the physical aspects of running errands and paying bills
- assist with managing your finances and property
- provide a safety net while you are travelling so somebody can handle your affairs in your absence
- appoint somebody to manage things while you are temporarily incapacitated, for example, if you are recovering from an illness or surgery
- appoint somebody to carry out a specific task, for example, complete a property transaction
A general power of attorney is only valid while you have legal capacity.
An enduring power of attorney is effective if you lose legal capacity due to disability or illness and allows your attorney to commence or continue to manage your affairs even when you are unable to provide lawful instructions. As a safeguard, you can state that your enduring power of attorney only comes into effect if you lose capacity.
Who should I appoint as my attorney?
Although the law requires your attorney to act in your best interests, it is important that you choose somebody with care. Your attorney not only needs to be completely trustworthy, but you should feel confident that they will be capable of fulfilling the role. Your choice may depend on the complexity of your affairs and the things your attorney will likely need to deal with.
You may appoint more than one attorney or a substitute attorney if the appointed attorney cannot act or continue to act in their role. If you appoint more than one attorney, you will need to decide whether they must act jointly or severally.
Your attorney should:
- have integrity
- be willing to act in that capacity
- have skills or competence in relevant areas
- be able to spare the time necessary for the task
- live in the locality in which they are to act
- be impartial and have no known conflict of interest
How can we help?
Preparing a power of attorney can provide you with the assurance that somebody you trust can step in to manage your affairs while you are unable to or, in the case of an enduring power of attorney, if you become incapacitated. These arrangements should be tailored to your needs, and we can work with you to explain their effect and prepare the documents that best suit your circumstances.
If you need assistance, contact [email protected] or call 02 7256 7050.