Power of attorney is a legal document that gives the authority to the executor to act on your behalf and make decisions regarding legal, financial, business, and personal affairs.
But the question might arise in the minds of many: why would someone give authority to another person to decide on their behalf?
Why is Power of Attorney Important?
Well, no one likes to think about them not feeling well or about their death, but life is unpredictable, and what if something happens to you and you suffer from temporary or permanent loss of capacity?
Power of attorney gives the authority to the person you choose to decide on your behalf. This means things will go as you please, even in your absence.
But when you don’t have power of attorney, a court may appoint someone to manage your finances.
Types of Power of Attorney
Special Power of Attorney: A special or limited power of attorney grants the agent authority to perform specific tasks or transactions. This can be useful for addressing particular legal or financial matters or managing certain aspects of estate planning. For Example: Executing a real estate transaction, Handling specific business transactions, and Managing a legal case.
Durable Power of Attorney: A durable power of attorney remains effective even if the principal becomes incapacitated. This ensures continuity in decision-making and asset management.
Medical Power of Attorney: A medical power of attorney, also known as a healthcare power of attorney or healthcare proxy, allows an agent to make medical decisions on behalf of the principal in a situation when they are incapable of doing so.
Managing the assets listed above can be complicated for someone who is not into legal, and this is where an estate lawyer makes the path easy for you. Let’s understand an estate lawyer’s duties to know they help you in switch circumstances.
Duties of Appointed Attorney
An appointed attorney, also known as an attorney-in-fact in Australia, holds a significant position of trust. They are responsible for acting in your best interests and following the guidelines set out in the Power of Attorney (POA) document. Here’s a list of their key duties:
- Act with Honesty and Due Care
- Follow the Terms of the POA
- Act in Your Best Interests
- Keep Accurate Records
- Communicate Effectively
- Avoid Conflicts of Interest
- Additional Considerations
Who should you Appoint as an Attorney?
When choosing an Attorney, select someone you trust to make personal and financial decisions if you cannot. Ensure this person is willing and capable of taking on this responsibility and will likely outlive you. You can appoint more than one Attorney. Here are your options:
- A Trusted Person or Professional: This could be a friend, family member, or your solicitor.
- State Trustees: You can appoint us as your Enduring Power of Attorney (financial). This option can relieve your loved ones of the responsibility and ensure that professionals handle important decisions.
Key Benefits
- Support for Decisions: By appointing someone you trust as your Attorney, you’ll have the support needed to ensure decisions are made according to your wishes.
- Avoid Legal Worries: A Power of Attorney can help prevent future legal costs and disputes among loved ones.
- Financial Stability: Your nominated person or professional can manage your bills and finances, ensuring everything remains in good order.
- Protects You in Emergencies: If you’re suddenly unable to make decisions due to an accident or illness, your agent can ensure your wishes are carried out without delay.
Summary: Protect your assets and wishes with power of attorney. Above, we have listed a few benefits to give you an idea of its importance.
If you agree with the information and are thinking of creating power of attorney, search for your nearby Estate Lawyers who have years of experience making the same.
They will guide you with everything, from the documents you need to prepare and how you should proceed with things.