Estate planning is something we all need to be mindful of, and a Power of Attorney is one of the most important planning tools available.
There are two different options in Australia, a General Power of Attorney, and an Enduring Power of Attorney.
Both documents are deemed to be invalid once a person has died, but they are documents that need to be drawn up with the help of a Wills and Estates Lawyer.
General Power of Attorney
A General Power of Attorney gives permission for a person appointed by you to manage your financial assets on your behalf for a short time. It could be due to illness, injury, or absence. The duties of someone appointed General Power of Attorney are limited. For example, you might appoint someone to make decisions on your behalf to:
- Operate your bank account while you are overseas
- Vote at meetings on your behalf
- Sell your home while you are in hospital or otherwise ill
Usually, a General Power of Attorney only operates while you still have the capacity to make your own decisions.
Enduring Power of Attorney
An Enduring Power of Attorney applies from the date it’s signed and remains valid past the person’s mental incapacity.
Simply put, an Enduring Power of Attorney appoints someone to manage your affairs when required and they continue to do so after you have lost the physical and mental capacity to make your own decisions.
There are several requirements for an Enduring Power of Attorney document, including:
- It must clearly state your desire for the powers to continue after you no longer demonstrate mental capacity
- It must be signed by your solicitor to confirm their consent
- It must be signed by a witness, usually your solicitor, who will also need to sign a certificate declaring they have explained the Enduring Power of Attorney to you and that you understand it
In Queensland, an Enduring Power of Attorney can be used to make legal, financial and personal decisions on your behalf. For example, making care decisions for you if you suffer from dementia, or operating your bank account if you are in an accident that leaves you physically and mentally incapacitated.
Whether you opt for a General Power of Attorney, or an Enduring Power of Attorney, these are documents that need the attention of a legal specialist.
Here at Bickell & Mackenzie, we have Wills and Estate planning experts who can help you with every aspect of powers of attorney. Contact our office today on: (07) 3206 8700 or email: info@bimalaw.com.au to make an appointment.
