A Power of Attorney (PoA) is often considered as an afterthought - only after having drawn up a will. However, a PoA arguably may be something you should consider sooner. Depending where you reside, PoA is governed by the respective state's laws with most states mutually recognising PoAs from interstate.

 

What is a Power of Attorney (PoA)?

 

General PoA

• It is a legal document where you appoint an Attorney (can be a person or a trustee organisation) to manage your property matters and financial affairs on your behalf while you are alive.

• The formal authority given to the Attorney can be limited to a certain period and subjected to your conditions.

• The PoA can be revoked any time while you have the capacity to do so. 

• The PoA automatically ceases upon you losing mental capacity or your demise.

• Circumstances where you may consider a General PoA:

  • You're travelling for an extended period of time and you want to formally authorise a person to act on your behalf.

  • This may also include having a PoA for someone to make business decisions on your behalf. The person will be acting in your capacity whilst the PoA is valid.

 

 

Enduring PoA

• It is a legal document where you appoint an Attorney (can be a person or a trustee organisation) to make decisions in relation to your medical treatment, lifestyle and welfare (ie non-financial / assets related). 

• Unlike a General PoA, the Attorney for an Enduring PoA will only act when you no longer have the mental capacity to do so and is subjected to your instructions.

• The PoA can be revoked any time while you have the capacity to do so. 

• The PoA automatically ceases upon your demise.

• Circumstances where you may consider an Enduring PoA:

  • You have specific wishes in relation to your lifestyle, medical treatment and welfare where you want your Attorney to carry them out should you be incapacitated.