Do you need a Power of Attorney?
A Power of Attorney is a legal document which involves an individual appointing another person (known as an attorney), to act on their behalf. The appointed attorney is usually a solicitor and generally has the authority to sign documents for the appointee. Depending on the limitations and conditions set out within the Power of Attorney document the attorney may also have other responsibilities such as accessing and managing the appointee’s finances.
It is important to remember that a Power of Attorney is legally binding. Therefore, it is imperative that you appoint someone you trust to act as your attorney. This person must be over 18 years of age and is best not to have conflicting interests in any of your matters. He or she should be someone who understands your thoughts and intentions, and will be happy (and can be trusted) to act in the same way that you would.
There are many reasons why you may require a Power of Attorney, even if it’s as simple as paying your bills for you while you are on holidays. Generally, an appointed attorney can act in the following scenarios:
• You are travelling overseas
• You will be uncontactable for any reason
• Serious sickness or mental incapacity
• Voting as a proxy in meetings
• Collecting debts
• Operation of your bank accounts
• Buying and selling property on your behalf
• Dealing with insurance companies or nonbank financial institutions
• Control of your business affairs
• Any other specific matter that concerns you
One major reason that people choose to use a Power of Attorney is due to loss of mental capacity. This usually means that a person is no longer able to manage their own affairs and cannot understand documents they are required to sign or understand presented information in order to make a decision.
Conditions for a Power of Attorney can be as broad or as narrow as you would like and can be made specific for your situation. The authority can be given to start immediately, on a set date, or when the person becomes subject to mental incapacity, for example.
Additionally, if you wish for your attorney to be able to look after and make decisions with regard to your real estate interests you must register the Power of Attorney with the Department of Lands. This is usually also the case for the selling and dealing of shares. Although it isn’t required by law, various brokers and companies will require the document before carrying out any transactions. The attorney does not have the right to give away your money or property unless the conditions of the document specifically allow them too.
It should be noted that the laws regarding Power of Attorney differ in various states. Here at The Quinn Group we are able to help organise your financial and personal affairs and ensure that plans are in place for any future requirements. Our lawyers are experienced in drafting and dealing with Power of Attorney matters including acting as an attorney, drafting documents and arranging any necessary signatures and certificates. For more information or any queries regarding Power of Attorney click here to submit an online enquiry or contact us on 1300 QUINNS (784 667) or on +61 2 9223 9166 to make an appointment.
