Why should I have a power of attorney?
Do you really want to have the burden of managing your business’ property and financial affairs while you’re overseas holidaying with your family? What if you suddenly fell ill, wouldn’t it be nice having someone you trust looking after your business? Despite the age specific connotations that may pop into your mind when you hear the words ‘power of attorney’, having a validly appointed attorney really is essential for everyone, especially those engaged in business.
If you validly appoint an attorney, that appointed person can take care of your property and financial affairs in the instance you are personally unavailable, whatever the reason may be. This means that in your absence, your attorney has the ability to do things such as finalise pending transactions, authorise payments and collect debts. You could be enjoying your family holiday, or lying in bed recovering from an unfortunate illness while your trusted attorney completes the sale of your investment property that’s been hanging over your head, pays your bills and manages your business’ financial affairs.
Of course you need to nominate someone you trust and whom you believe is capable of making good decisions for you. However it is comforting to know that there are legal obligations that require your nominated attorney to act in your best interest, to obey your instructions and to take care of any property that may come under their control.
There are two types of powers of attorney, a general power of attorney and an enduring power of attorney. A general power of attorney may be appropriate if circumstances are such that you wish to only give your chosen attorney the power to act on your behalf for a certain period of time or purpose, such as for carrying out a particular transaction. However, you should be aware that if during such period you become of unsound mind, your appointed attorney would no longer be able to exercise their power as your attorney. Appointing your attorney under an enduring power of attorney would mean that they could continue to act despite you losing your mental capacity.
If you are considering appointing a power of attorney it’s important you fully understand what is involved. The lawyers and accountants at The Quinn Group can not only provide you with advice in this area, but can also set up a power of attorney for you. Call 1300 784 667 or fill out our online enquiry form.