A Power of Attorney is a legal document that allows another person to act on your behalf. They can make important decisions and signing documents when you are unable to do so.
The person (or people) appointed by you is called your ‘Attorney’. The Attorney you choose can have the same control over finances and assets that you have so it’s crucial you choose a trusted adult to take this role.
Your Attorney cannot make health or lifestyle decisions for you.
You should ensure that this person:
Knows their duties and responsibilities
Will act in your best interests
Understands your wishes
You should choose someone that understands financial matters and business.
A Power Of Attorney becomes void when you pass away and does not affect your Will. Your Executor named in your Will takes over from your Attorney at death.
Organise a consultation with an experienced accountant…
There are two types of Power of Attorney: Ordinary and Enduring.
Ordinary Power of Attorney
An Ordinary Power of Attorney is only valid while you still have the capacity to make your own decisions. A common example of why this arrangement is appropriate is when you are travelling overseas for several months and want someone to manage your finances while you are away (e.g. if you are a business owner).
Enduring Power of Attorney
An Enduring Power of Attorney is valid only when you lose the capacity to make financial decisions yourself. This arrangement is particularly important for the elderly or those with failing health.
Power of Attorney Cheltenham, Bayside and Melbourne
Bruce Edmunds & Associates can help you prepare a Power of Attorney document. We’ll lead you through every step of the process to ensure you feel confident in your decision.