Who do you trust to look after your money?

Have you ever considered what would happen if you were suddenly in a condition where you were unable to make decisions for yourself? Who would you trust to manage your finances and sign legal documents on your behalf?

Choosing the right person to act on your behalf is not a decision to be made lightly and it’s important to document your choice in the right way.

A Power of Attorney is an important legal document that allows you to nominate one or more persons (referred to as ‘attorneys’ but not be confused with solicitors) to make legal and financial decisions on your behalf.

Subject to specific powers or limitations you place on the document, your attorney has the power to manage your affairs, including buying or selling real estate, paying bills and withdrawing funds from your bank account.

A General Power of Attorney allows your attorney to manage legal and financial matters on your behalf, but only while you have the ability to instruct them. For example, you may need to rely on your attorney while you are staying in hospital for a short period of time or while travelling overseas.

If you lose your mental capacity and the ability to understand the nature and effect of your actions, a General Power of Attorney ceases to have effect.

However, an Enduring Power of Attorney continues to operate even if you have lost your mental capacity to make decisions and the ability to instruct your attorney. Your attorney will continue to act in your best interests and make decisions on your behalf in accordance with the terms of the powers granted in the document.

The attorney you appoint to make financial decisions on your behalf must be someone you trust completely as they will be making important decisions. They must be over the age of 18 and must not be bankrupt or insolvent.

You can decide to appoint more than one Attorney to act together either jointly (must act together at all times) or jointly and severally (they can act either jointly or independently).

Without an Enduring Power of Attorney, the Guardianship Tribunal may appoint a financial manager to look after your affairs. This may cause unnecessary costs and delays and, most importantly, they may appoint someone who you don’t want looking after you.

Don’t lose the opportunity to make these important decisions for yourself. Contact our Wills & Estates team for advice about preparation of an Enduring Power of Attorney.