Appointing a Power of Attorney (PoA) is a significant decision that allows someone else to manage your affairs on your behalf. This guide will walk you through the process, ensuring you make informed choices every step of the way.
Understanding Power of Attorney
A Power of Attorney is a legal document that authorises another person, known as your attorney, to make decisions about your assets and financial affairs.
This could be necessary if you’re travelling, ill, or otherwise unable to manage your affairs.
There are two main types: a General Power of Attorney and an Enduring Power of Attorney.
The former is typically for a specific period and becomes inactive if you lose decision-making capacity.
The latter remains effective even if you lose the capacity to manage your affairs.
🔑 Key Takeaway: Know the type of PoA you need based on your circumstances and the duration you require it for.
Also read: 6 Advantages and Disadvantages of Power of Attorney
1. Choosing Your Attorney
Selecting the right attorney is crucial. This person should be over 18 years of age and someone you trust implicitly to act in your best interests.
They should understand your values and be capable of managing your affairs responsibly. You can appoint a family member, friend, solicitor, or trustee organisation like the NSW Trustee and Guardian.
🔑 Key Takeaway: Choose a trustworthy attorney, understands your wishes, and is capable of managing your affairs effectively.
2. The Appointment Process
To appoint a PoA, you must be over 18 and fully understand the nature and effect of the appointment.
The process involves completing a form, which must be signed and witnessed. In some cases, especially if mental capacity is in doubt, an assessment by a physician may be required.
🔑 Key Takeaway: Ensure you meet the legal requirements and complete the necessary forms accurately for a valid PoA appointment.
3. Witnessing and Registration
Your PoA document must be signed in the presence of two adult witnesses, one of whom must be authorised to witness affidavits or a registered medical practitioner.
It’s important to note that certain relatives, the appointed attorney, or their relatives cannot act as witnesses. In some states, if your attorney will deal with real estate on your behalf, you must register the PoA with the Land Titles Office.
🔑 Key Takeaway: Proper witnessing and, where necessary, registration of your PoA is essential for its legal validity.
Revoking a Power of Attorney
You retain the right to revoke your PoA as long as you have the mental capacity to do so.
This revocation must be communicated to your attorney, preferably in writing, to ensure clarity and legal standing.
🔑 Key Takeaway: You can revoke your PoA at any time, provided you have the mental capacity to make this decision.
Also read: Does Power of Attorney Override Executor: 4 Important Differences
Need a Lawyer?
Safeguards and Risks
While a PoA is a powerful tool, it’s not without risks. To mitigate these, be specific about the powers granted and involve trusted individuals in the process.
Regularly review your PoA and consider involving more than one attorney to ensure checks and balances.
🔑 Key Takeaway: Be aware of the risks involved in appointing a PoA and take steps to mitigate them through careful planning and regular reviews.
Seek Help From A Legal Professional
In the process of appointing a Power of Attorney, the value of professional legal advice cannot be overstated.
Navigating the complexities of legal documentation and ensuring that your PoA accurately reflects your wishes and circumstances requires expert guidance.
A legal professional can provide clarity on the types of PoA, assist in drafting the document to suit your specific needs and ensure all legal requirements are met.
This step is crucial in safeguarding your interests and ensuring that the appointed attorney can effectively manage your affairs without legal complications.
Remember, while appointing a PoA is a significant personal decision, having the right legal advice can provide peace of mind and ensure that your affairs are managed as you intend.
