What is a Power of Attorney ?

A Power of Attorney is a document by which you authorise another person (your Attorney) to do certain things on your behalf in relation to your property and financial affairs.

You can nominate more than one person as your Attorney.


When do I need a Power of Attorney ?

A Power of Attorney is a useful way of planning for situations where you need to authorise someone else to act on your behalf including:

º  If you are going overseas or interstate and require someone to be able to act on your behalf during your absence.
º  If, through illness or incapacity, you require assistance in managing your affairs


What can I authorise a Power of Attorney to do ?

You can specify in the Power of Attorney the things that you want your Attorney to be authorised to do on your behalf. Examples of the things you can authorise your Attorney to do are:

º  Operate a bank account including the withdrawal of money and the signing of cheques.
º  Act in relation to a particular transaction (e.g. the sale or purchase of a property)
º  Sign documents on your behalf

If you sign a Power of Attorney with no limitations, your Attorney will be able to do an extremely wide range of things on your behalf. Those things include:

º  The signature of documents to sell or buy real property
º  The signature of documents to sell or buy other assets owned by you including shares
º  The signature of a mortgage over real property
º  The signature of cheques or the withdrawal of money from your bank account

Note: A Power of Attorney cannot be used for health, medical and lifestyle decisions. The appropriate document to deal with those matters is an Appointment of Enduring Guardian .


What is an Enduring Power of Attorney ?

There are two types of Power of Attorney in NSW, Ordinary Powers of Attorney and Enduring Powers of Attorney.

The main difference is that an Enduring Power of Attorney continues to be effective even if the person who signed it loses their mental capacity.

For an Enduring Power of Attorney to be effective, it must contain a statement that it is to continue after the person signing it has lost mental capacity. It must also include a certificate signed by a legally qualified person (e.g. a Solicitor or Barrister) or clerk of a Local Court.


When does a Power of Attorney start ?

You can nominate the date you wish the Power of Attorney to start. Options include:

º  The date that you sign the document
º  A specific date in the future (e.g. the date you leave Australia for an overseas trip).
º  If you become unable to make decisions in relation to your property and financial affairs yourself


When does a Power of Attorney cease to have effect ?

Generally speaking, an Enduring Power of Attorney continues in effect until:

º  It is revoked by the person who signed it; or
º  Until the person who signed it dies.

Generally speaking, an Ordinary Power of Attorney continues in effect until:

º  It is revoked by the person who signed it; or
º  Until the person who signed it loses mental capacity; or
º  Until the person who signed it person dies.


Does the Power of Attorney need to be registered ?

Not unless it is used to sign documents that affect real estate.


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