Appointing an Enduring Power of Attorney

Every day in Australia hundreds of people just like you lose control of their property, finances and their lives as a result of illness or accident... but luckily it doesn’t have to happen to YOU!!

Loss of mental capacity can affect anyone...not just the elderly and infirm. An accident, a temporary illness or a permanent disability can strike you at any time, without warning. That’s why it pays to be prepared! You should consider NOW giving someone you trust your Power of Attorney...before it’s too late! A Power of Attorney can save you and your family from unnecessary anguish and financial difficulty.

Consider these real-life examples...

Imagine you’re driving to work one morning, moving through the traffic lights on green. Suddenly you hear a screech of brakes, and the crunch of metal on metal and then...nothing!

You wake up in hospital having suffered head injuries and brain damage. No matter how hard you try you can’t communicate, and can’t sign your name. No-one can act for you. Your affairs are left in limbo...your assets are frozen!

Another example...

You decide to call in on your mother on your way home from work. Your father is enjoying his weekly game of bowls down at the club. While he’s out, your mother has suffered a stroke and has been unconscious for several hours. Despite the best of care her recovery is slow, and she is likely to be permanently disabled. Your father wants to sell the home and buy another, more accessible for your mother. But your mother and father are joint owners of the home, and because your mother is unable to sign a contract or transfer document, the home can’t be sold.

Situations like these can be easily avoided. How?

By signing a Power of Attorney NOW!

What is a “Power of Attorney”?

A Power of Attorney is a document which enables the person (or persons) of your choice to act in your place, and do the things you would normally do yourself... things like signing documents, paying the bills and the rent, doing the banking. The person you choose, your “Attorney”, has the right to “stand in your shoes” when you wish them to look after your affairs.

Why would you need a Power of Attorney?

In the past, Powers of Attorney were mainly used for very specific purposes. For example, if you went overseas, you could give someone your Power of Attorney to handle the sale of your home. Nowadays, Powers of Attorney are more often used as a safeguard to ensure that, should the need arise, another person can step in and do the day-to-day things for you... things that we generally take for granted.

What would happen, for instance, if you fell very ill, and could not even sign your name on your joint bank account where both signatures are required? Giving Power of Attorney to your partner can avoid a lot of delay and anguish in this situation.

Like us, financial planners strongly recommend that their clients grant Power of Attorney so their assets are not “locked up” if a person lacks what is called “legal capacity” to sign documents or do other things.

Who can be appointed?

Anyone who is over the age of eighteen. Preferably, it would be a spouse, child, children, near relative or some other significant person in your life, whom you trust.

Why can’t you wait until something happens and then grant Power of Attorney?

Say you suffer an accident, or a stroke, which leaves you unable to understand, speak, communicate, or write. This means you don’t have the “legal capacity” to make decisions. Then it’s too late. You cannot give Power of Attorney if you don’t have the “legal capacity” to understand the Power of Attorney document itself and make decisions. A person who has suffered an irreversible problem, such as dementia or brain damage, may be unable to give Power of Attorney.

If you know a person who, due to age or health problems, may be at risk of suffering dementia, a stroke or any other serious illness, it might be a good idea to talk to them about giving Power of Attorney before it’s too late.

What is an “enduring” Power of Attorney?

This is the most common type of Power of Attorney made these days, because it lasts, or “endures”, even if you, the person giving the Power of Attorney, suffer unsoundness of mind. Normally a basic Power of Attorney would become invalid as soon as you suffer loss of capacity through unsoundness of mind. This is a protection given automatically by the law... if you suffer loss of legal capacity, you cannot cancel a Power of Attorney you have given, so the law does it for you.

For a friendly, no-obligation chat about the benefits of appointing an Enduring Power of Attorney…call Lou Pirona, Natalie Power or Lisa Roberts at Turnbull Hill Lawyers on (02) 4904 8000.

Disclaimer - This article is offered for general information purposes only. It is not offered as and does not constitute specific legal advice or opinion. The accuracy of the information is not guaranteed. You should not act or rely upon any of the information contained within this article without seeking the advice of a qualified solicitor who specialises in the particular area of expertise and jurisdiction that you require.