If you are travelling overseas for a lengthy period, you may want to give someone a power of attorney to manage things while you are away.  You may also wish to grant a power of attorney if your health has deteriorated.

A power of attorney is a legal document by which you authorise someone (known as your “attorney”) to make financial decisions and sign papers on your behalf. A general power of attorney ceases to be effective in the event that you suffer some sort of incapacity through unsoundness of mind. However, this situation can be avoided by appointing an enduring power of attorney. An enduring power of attorney is one that will continue to be effective if you suffer an incapacity. An enduring power of attorney must be explained to you and witnessed by a “prescribed person” such as a solicitor. Your attorney must also acknowledge acceptance of his or her appointment as attorney. 

Individuals have some degree of control as to how the power of attorney is to operate. You can choose when the power of attorney is to take effect and can give the power of attorney for specific purpose, or a specified time. You can revoke a power of attorney at any time by signing a revocation of power of attorney and informing your attorney in writing that the power of attorney has been revoked.

If you wish for your attorney to be able to deal with any real estate, the power of attorney must be registered with the Land Registry Services NSW (LRS). 

Changes have also been made to the operation of powers of attorney through the introduction of the Powers of Attorney Act 2003 (NSW). The Act introduced a is a prescribed form for the appointment of an attorney after 16 February 2004. Other important changes to note are that:

• An enduring power of attorney will not commence to operate until the attorney acknowledges acceptance of the appointment.
• An attorney is prohibited from using the principal’s money for gifts or benefits to the attorney or third parties unless specifically authorised in the power of attorney.
• The Guardianship Tribunal will have power to review all grants, regardless of when they were made.

Please contact our office should you require further information in relation the issues raised.

DISCLAIMER: The information contained in this article is general and is not intended to be advice on any matter. It is for information only and is not legal advice. In the event of a legal problem, you should seek legal advice.