Power of Attorney
A power of attorney is a
document whereby one person, called the principal. Authorises another,
called the attorney, to act on his or her behalf, generally in relation
to financial and property decisions. The power of attorney cannot be
used after you die. A power of attorney expires when you lose mental
capacity, unless it is an “enduring” power of attorney.
An “enduring” power of attorney is particularly useful as it
allows you to make a power of attorney that will continue to be
effective even if you lose mental capacity. You can elect when you wish
the enduring power of attorney to come into effect that is,
from the moment it is signed or it can come into effect only when you
become of unsound mind.
“General” powers of attorney are used for commercial or
transactional purposes to conduct, for example, a sale or purchase of
property.
An attorney
can have significant power over your affairs. You should choose an
attorney whom you trust and who will manage your finances in a
responsible way.
An attorney must be over the age of 18 and should be someone you can
trust, who is competent enough to make decisions and seek expert advice
where necessary, who respects your wishes and who is likely to be in the
locality and healthy enough to carry out the appointment.
If your
financial affairs are complex, you should appoint an attorney who is
capable of managing complex affairs and is available to do so. You may
elect Quinns as your Attorney, but fees will apply.
Your attorney must:
-
Act in your best interests at all times;
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Act honestly and protect your assets;
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Prepare and keep records of all dealings and transactions;
and
-
Not renounce a power during any period of your legal
incapacity, except in limited circumstances.
It is also possible to
appoint more than one attorney to act, and they may act jointly or
severally.
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Jointly and severally - the attorneys can act together or
separately;
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Severally - the attorneys can act separately; or
-
Jointly - the attorneys must agree on all decisions.
Registration of your power of
attorney is only required if the attorney is going to deal with your
real property, for example, a mortgage, lease or selling your property.
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