Powers of Attorney
In terms of life planning, a Power of Attorney is as equally important as a Will.
In simple terms, a Power of Attorney is a document that grants power to a person (known as an attorney) to make decisions on behalf of the principal person (also known as the grantor or donor).
Powers of Attorney are important because if, as the principal person, you are unable to make a decision or perform an action due to you being absent from the country or having lost your mental capacity, then your nominated attorney can act on your behalf.
The attorney is required to act in your best interests and should always be somebody you trust, such as a family member or close friend.
FAQ's
A Power of Attorney is a legal document appointing a family member or friend to make decisions on your behalf either immediately or upon your loss of mental capacity. They are particularly useful upon the loss of your mental capacity when you can no longer make decisions in relation to your finances.
A Power of Attorney exists while you are alive. Your Will does not come into effect until you die.
No. In NSW and the ACT Powers of Attorney are slightly different. In NSW a Power of Attorney enables your attorney to make decisions in relation to your financial affairs only. Whereas in the ACT your Power of Attorney can enable your Attorney to make decisions in relation to financial affairs as well as health matters.
