A Power of Attorney is a legal document which authorises you, the principal, to appoint one or more persons, the attorney/s, to make important decisions on your behalf in respect of legal and financial matters. Any decision that is made by an attorney has the same legally binding effect as if it were you who made that decision.
There are two (2) types of Power of Attorneys, a General Power of Attorney and an Enduring Power of Attorney.
General Power of Attorney
A General Power of Attorney enables you to appoint a person, or persons, to manage financial and legal decisions on your behalf, but only whilst you have the ability to make your own decisions. If you lose capacity, a General Power of Attorney will cease to operate and will no longer be valid.
This document is beneficial when, for example, you are in the process of selling a property but may be overseas at the time of the sale. A General Power of Attorney will allow your attorney to finalise the sale on your behalf. However, if your attorney is required to deal with any real estate in New South Wales, the Power of Attorney must be registered with NSW Land Registry Services.
Enduring Power of Attorney
An Enduring Power of Attorney enables to you to appoint a person, or persons, to manage financial and legal decisions on your behalf and continues to operate even in the event you lose capacity and the ability to make your own decisions, temporarily or permanently. You can choose when this document takes effect, and it only ceases to operate upon your death.
It is a good idea to have a Power of Attorney in place in the event that something happens to you and you lose capacity, either temporarily or permanently, as a result of an illness, injury, and / or disability.
What can my Attorney do?
With some exceptions, and subject to what conditions you impose, ordinally in NSW a Power of Attorney can only make legal and financial decisions, including decisions in respect of the following:
- signing legally binding documents i.e., a mortgage;
- operating bank accounts;
- paying bills and other expenses;
- buying, selling, and managing real estate; and
- managing investments i.e., shares.
You may also choose to provide your attorney additional powers and / or impose limits or conditions on your attorney’s authority. However, our experienced team of Estate Planning lawyers can assist you further should this be something you require.
A Power of Attorney does not enable your attorney to make decisions in respect of healthcare, lifestyle, and medical matters. You can appoint an Enduring Guardian to make these decisions, which is a separate legal document altogether. Our Wills and Estate Planning lawyers at Madison Marcus Law Firm can also assist you with the preparation of an Enduring Guardian.
Obligations of an Attorney
Your attorney is under a duty to act in your best interest, except if you have conferred specific powers on your attorney. An attorney is required to observe the following duties:
- keep the attorney’s money and assets separate from your own; and
- keep proper accounts and records of how the attorney handles your money and assets.
If your attorney does not carry out their obligations appropriately, they may be liable to compensate you.
How can Madison Marcus HELP YOU?
At Madison Marcus, our Law team is dedicated to supporting and assisting you in situations that we understand can be a challenging process. We believe that having the guidance and support of our experienced lawyers can make a significant difference in ensuring that your legal rights and obligations are protected. You can be confident that you have the support and guidance you need to navigate the legal world.
