A Power of Attorney (POA) is a legal document allowing someone to decide on your behalf. In Australia, there are several types of POA, each serving different purposes. Here’s a simple guide to understanding them.
- General Power of Attorney
A General Power of Attorney confers authority upon an individual to act on your behalf in financial and legal matters. You are typically utilised for a specified duration or specific purpose, such as during an extended overseas trip; this type of power of attorney is contingent on your decision-making capacity. Knowing that a General Power of Attorney stops being valid if you cannot decide independently is essential.
- Enduring Power of Attorney
An Enduring Power of Attorney (EPOA) retains its effectiveness even when an individual becomes incapacitated and loses decision-making capacity. This attribute proves advantageous for long-term strategising, particularly in scenarios involving conditions like dementia that may compromise the capacity to make sound decisions. Depending on the jurisdiction, an EPOA can include financial, legal, and occasionally personal or health-related matters.
- Medical Power of Attorney
A Medical Power of Attorney, also known as an Enduring Power of Guardianship or Medical Treatment Decision Maker, allows someone else to make medical and lifestyle decisions for you if you cannot. This authority extends to decisions concerning your healthcare, medical treatments, and living arrangements.
- Financial Power of Attorney
A Financial Power of Attorney confers authority upon an individual to manage specified financial affairs on behalf of another person. This encompasses supervising bank accounts, settlement of financial obligations, and administration of investments. It can be established as a General or Enduring Power of Attorney.
- Limited Power of Attorney
A Limited Power of Attorney authorises an individual to act on your behalf for a specific task or a predetermined period. This authorisation is commonly utilised to grant someone the authority to perform a particular task in your absence, such as selling a property while you are out of the country.
How to Choose the Right Power of Attorney
- Choosing the correct type of POA depends on your needs and circumstances. Here are a few tips to help you decide:
- Consider the Scope: Think about what decisions you need someone to make on your behalf and whether those decisions need to be ongoing.
- Trustworthiness: Choose someone you trust implicitly, as they’ll have significant control over your affairs.
- Legal Advice: Consult a lawyer to ensure the POA meets your needs and is legally sound.
Final Thoughts
Having a Power of Attorney can provide peace of mind, knowing that your affairs will be handled if you cannot do so yourself. Review your POA regularly and update it to reflect changes in your life or wishes.
It’s always best to consult a legal professional for more detailed information or specific advice.