Published in Financial Planning News August 2005

Published in Financial Planning News August 2005

Power of Attorney explained

A Will and testamentary trust can ensure your final wishes are carried out, but who’s around to help ensure things don’t go awry while you’re alive?

In a situation where you can’t make financial decisions, for example, if you’re travelling overseas or you have an accident and become incapacitated, it’s important to ensure someone is there to help you. The good news is, it’s possible to choose a trusted person to act on your behalf during your lifetime.

Granting a Power of Attorney means you legally appoint a person, or organisation, to make decisions, sign documents and generally act on your behalf in various financial matters, such as:

  • collecting dividends, interest, rent and other sources of income
  • buying and selling assets
  • paying your accounts, and
  • preparing your tax return.

A Power of Attorney can be limited to a specific event, such as the sale of a property, or can be set up to cover a particular period. However, should you become mentally incapable of handling your own affairs, any Power of Attorney will automatically be revoked.

So, how do you ensure your requests can be carried out if this occurs?

Enduring Power of Attorney

A simple solution is to establish an Enduring Power of Attorney as part of your overall estate plan. An Enduring Power of Attorney continues to operate in the event of mental incapacity. In addition, you may wish to consider appointing an Enduring Guardian and medical agent to make medical decisions on your behalf as well as any decisions affecting your quality of life.

Each state and territory has its own laws governing an Enduring Guardianship and medical directives. In order to be effective, your Power of Attorney and Enduring Powers of Attorney must conform to the laws of the state or territory in which you reside.

To help you understand the laws and make informed decisions, contact the appropriate Government department for more information. Or, contact us to help you with your overall estate plan.

For more information in your state:

New South Wales

Guardianship Tribunal

Call 1800 463 928

Visit

Victoria

Office of the Public Advocate

Call 1300 309 337

Visit

Queensland

Department of Justice and Attorney General

Visit

Tasmania

Office of the Public Guardian

Visit

Call (03) 6233 3085

South Australia

Office of the Public Advocate

Visit

Western Australia

Office of the Public Advocate

Visit

Call 1300 858 455

Northern Territory

Department of Justice

Visit

Australian Capital Territory

Public Trustee

Visit