ENDURING POWER OF ATTORNEY

An Enduring Power of Attorney is a legally-binding document that lasts until your death. It allows you to appoint a person(s) you trust (called the ‘attorney’) to be responsible for managing your financial and legal decision-making if you lose the capacity to make decisions for yourself. 

WHAT DOES IT MEAN TO ‘LOSE CAPACITY’?

In certain situations, the law may not allow you to make legal decisions for yourself because you have ‘lost capacity’. In other words, you are deemed to be in a state of vulnerability that impairs your judgement. When this happens, the law steps in to protect you by preventing you from engaging in financial and legal dealings. Incapacity may be due to a medical emergency, illness, or disability. You can elect for your Power of attorney to come into effect immediately upon signing, for a specific period of time, in the event that you lose legal capacity, or when your appointed decision-maker decides you require assistance to manage your affairs. 

WHAT DECISIONS DOES MY POWER OF ATTORNEY COVER?

When you sign a power of attorney, you are nominating someone to be able to step into your shoes and make legal and financial decisions on your behalf. This means your attorney has the legal authority to sign legally binding documents on your behalf, pay your bills, access your bank accounts, and even buy and sell a house or property on your behalf, if needed. Your attorney does not have the power to change your Will or make health and welfare decisions on your behalf (this requires an Enduring Guardianship), and they do not take responsibility for your debts after you die. Your attorney is legally bound to act in your best interests whenever they are acting as your attorney. 

DOES MY ENDURING POWER OF ATTORNEY NEED TO BE REGISTERED?

It is not necessary to register your Power of Attorney for your attorney to begin acting on your behalf. However, if you wish for your attorney to make financial or legal decisions involving real estate, then it is necessary to register your Power of Attorney document with Land Registry Services NSW for a small cost. 

WHY SHOULD I APPOINT AN ENDURING POWER OF ATTORNEY?

In the event of a medical emergency, your loved ones and next of kin do not automatically have the right to simply step in and make legal and financial decisions on your behalf. Without an Enduring Power of Attorney, they will be required to apply to the Guardianship and Administrative Tribunal to become your attorney. Having an Enduring Power of Attorney can enable decisions to be made quickly and by people you trust and have chosen yourself. Additionally, having an Enduring Power of Attorney is helpful if you travel; you can authorise your attorney to act on your behalf in financial and legal dealings whilst you are overseas. 

HOW CAN I APPOINT AN ENDURING POWER OF ATTORNEY?

At The Estate Planning Centre, we are familiar with the Enduring Power of Attorney form and requirements for New South Wales, as well as every other state and territory in Australia. It would be our privilege to help you prepare an Enduring Power of Attorney for your jurisdiction.

If you do not have an Enduring Power of Attorney in place, or would like to inquire about this document, The Estate Planning Centre would be delighted to discuss the topic further with you. You can contact us via email (office@theestateplanningcentre.com.au), or alternatively, you can book a complimentary initial meeting with us using the link, below.