Powers of Attorney

Power of Attorney DIY Kit: $29.95

General Power of Attorney
A General Power of Attorney (POA) is provided by the Donor to an Attorney or Attorneys and gives them the authority to perform certain tasks on behalf of the Donor. The authority can be limited to specific tasks such as accessing your bank account, or it can provide the Attorney(s) with the authority to handle all your affairs in the event that something unexpected happens to you. A typical example of the use of a General Power of Attorney POA) would be when people travelled overseas.

You may wish to consider including an expiry date in this type of Power of Attorney.

Enduring Power of Attorney
As in the case of a General Power of Attorney, an Enduring Power of Attorney gives the Attorney(s) the authority to perform certain tasks on behalf of the Donor. An Enduring Power of Attorney (POA) can also be limited to specific situations. Whereas a General POA would cease to be effective if the Donor loses mental capacity, an Enduring POA, as the name suggests, would continue to be effective in this event. This is the most important distinction between the two types of POAs and careful consideration should be given to which type best suits your particular situation.

A typical example of the use of an Enduring Power of Attorney (POA) is where the Donor is an elderly person who wishes to have a relative or close friend look after their affairs in the event that they suffer a stroke or other potentially mentally debilitating event. As well as the obvious advantage of having your attorney take care of paying bills and handling your affairs, it can also help avoid the expense of applications to the Protective jurisdiction of the Supreme Court and the ongoing cost of administration when dealing with the Court.

Advantages of having a Power of Attorney
Knowing that you have a properly appointed attorney can give you peace of mind when you:

    - go interstate or overseas for an extended period of time;
    - suffer poor physical and / or mental health; or
    - reach an age when you anticipate you will need greater assistance.

Important

The Powers of Attorney ACT 2003 (NSW) came into effect of the 16th of February 2004 and has significantly changed the way Enduring Powers of Attorney are to be certified and witnessed so that they conform to the new legislation. Specifically, the witness to the Enduring Power of Attorney will need to provide a CERTIFICATE which is attached to the Enduring Power of Attorney (POA) stating that they:

   1. explained the effect of the instrument directly to the donor before it was signed; and
   2. the donor appeared to understand the effect of the Power of Attorney.

It is very important that the witness who is providing the Certificate is satisfied that the donor understands what they are signing. If there is any doubt, the witness should take whatever reasonable steps are required to confirm the mental capacity of the donor.

D.I.Y. Power of Attorney Kit
Imperator Financial has available a legal kit which allows you to create your own Power of Attorney without the need to see a solicitor. The kit provides for both a General Power of Attorney and also an Enduring Power of Attorney. Click on the link above to read more.

Disclaimer:

No investment advice provided to you.
This web site is not designed for the purpose of providing personal financial or investment advice. Information provided does not take into account your particular investment objectives, financial situation or investment needs.

You should assess whether the information on this web site is appropriate to your particular investment objectives, financial situation and investment needs. You should do this before making an investment decision on the basis of the information on this web site. You can either make this assessment yourself or seek the assistance of any adviser.