Power of Attorney

A Power of Attorney is a legal document that allows one person (the principal) to appoint another person (the attorney) to manage their financial and legal affairs. The scope and duration of the powers granted can vary based on the type of Power of Attorney. There are two types of power of attorney.

1. General Power of Attorney:
   • Purpose: This grants the attorney authority to manage the principal’s financial and legal matters for a specified period or purpose. It is often used when the principal is temporarily unable to manage their affairs such as if they are traveling overseas.
   • Duration: It is only valid while the principal has the capacity to make their own decisions. It automatically ceases if the principal loses capacity.
2. Enduring Power of Attorney:
   • Purpose: This grants the attorney the authority to manage the principal’s financial and legal affairs even if the principal loses the capacity to make their own decisions in the future.
   • Duration: Continues to be effective after the principal loses capacity, ensuring continuity in managing the principal’s affairs.

1. Principal: The person who creates the Power of Attorney and grants authority to another.
2. Attorney: The person appointed to manage the principal’s affairs. The principal can appoint more than one attorney and specify if they must act jointly or independently.
3. Powers Granted: The specific powers and responsibilities the attorney is given, which can range from paying bills and managing bank accounts to selling property and making investment decisions.
4. Conditions and Limitations: The principal can impose specific conditions and limitations on what the attorney can and cannot do.

1. Form: In NSW, a Power of Attorney must be in the prescribed form.
2. Witnesses: The document must be signed by the principal in the presence of an eligible witness, who must be an adult and cannot be the attorney, their spouse, or any person who benefits from the Power of Attorney.
3. Acceptance: The attorney must sign the document to accept their appointment.

To enquire further about whether a Power of Attorney is appropriate in your circumstances, contact Buckley lawyers on 02 9220 1737 for confidential advice.