Powers of Attorney: Who Will You Give This To?

Life throws a lot of curveballs at us, and we find ourselves in situations that are out of our control. There are times when we can handle certain problems, such as leaky pipes or stretching our budget if our salaries are paid late. However, some serious issues will require you to consider a powers of attorney if you:

• Lose legal capacity or the mental capacity to make
• Are suffering from a severe physical disability
• Don't have the time to manage your finances

Now, why is this important? Can you imagine doing your day-to-day activities with such conditions? Yes, it's difficult, more so setting up your assets in your estate plan. You can give this legal document to a person who authorises them to manage your personal matters and make financial decisions for you. Think of this as having a personal assistant (but with much more legal implications).

Let us explore in this article how you can apply for this document, and who you can entrust this responsibility to.

So, How Does This Legal Document Work?

Now, a power of attorney form won't write itself, right? Yes. You, the "principal" (the person who appoints an attorney), will write this document. Now, you must choose whether you want a general powers of attorney or an enduring powers of attorney form. You can also use this alternative power of attorney form.

Basically, you can still use a general power of attorney if you still have mental capacity or legal capacity to make financial decisions. For example, you have a business trip or a long vacation, which renders you unable to manage your finances. It only ceases to be valid when you lose mental capacity.

On the other hand, an enduring power of attorney continues to authorise a person to manage your finances even if you lack the mental capacity to make financial decisions. Regardless of your situation, it's recommended to opt for the latter for more flexibility.

Just like most legal documents, this form also requires prescribed witnesses who are either of the following:

• An Australian lawyer
• A Registrar of a Local Court
• An overseas-registered foreign lawyer, or
• An approved employee of NSW Trustee and Guardian.

Note: Remote witnessing is allowed but should only be used as a last resort

If you want to revoke a person with their attorney duties, you can also use a power of attorney revocation form. Principals use this form if they still have the decision-making capacity for their personal matters and finances. Naturally, the principal will have to inform the attorney that they are relieved of their duties.

Registering Your Powers of Attorney Documents

Legal documents aren't really legal unless you register them. So, yes, it's important to register your power of attorney because of a number of benefits. To register this document is beneficial because it:

• Can become a public document. This will increase transparency and accountability
• Helps your attorney prove their authority when they manage your property or finances
• Will have a registration number stamped on it, which your attorney will use to sign any documents on your behalf.

Whether you are using a power of attorney, enduring power of attorney, or a power of attorney revocation form, you should highly consider registration purposes.

What Are the Legal Requirements?

Any document that deals with properties, finances, or any kind of other asset will come with legal requirements. As simple as this may sound, you can make a power of attorney document if you are over 18 and understand the nature and effect of the document.

Now, as a principal, you should be responsible for appointing your attorney. Any person over the age of 18 can have this responsibility. This can be a close family member or even a friend you trust. However, if you do not trust any of them, you can appoint a solicitor, an accountant, or a trustee company.

FAQs About Powers of Attorney

Our Obligations as Solicitors Under the Powers of Attorney Act 2003

We understand that creating a powers of attorney is a major decision in your life. With the legal implications that this document contains, you will need a professional lawyer. Our obligations under the Powers of Attorney Act 2003 (NSW) can help you:

1. Understand the nature and effect of this legal document. We promise we won't give a quick or brief overview. Rather, we would explain its ins and outs, so you would know the best way to approach your legal and financial decisions.
2. Assess your understanding and capacity so we are satisfied that you not only heard our explanation but also understand its effect. Our goal is to ensure your choices are made freely and without coercion.
3. Certify that we are the prescribed witnesses for your powers of attorney document. If we are completing the certificate attached to your Enduring Power of Attorney, as required by Section 19 of the Act, we are certifying that we:
   • Explained the effect of the instrument to you, before it was signed.
   • Are satisfied that you appeared to understand the effect of the Power of Attorney.

Why Should You Nominate Us With Powers of Attorney?

The legal protection we can provide, along with our other legal services, cannot be provided by other people. So, let us at JB Solicitors help guide you to draft legal documents that tailor to your needs. We can help you file an enduring power of attorney, power of attorney, or any kind of legal document with your estate plan.

Contact us and schedule a powers of attorney appointment with our firm today.

Thinking of an Estate Plan? Our Blogs Below Can Help!

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.