Power of Attorney & Enduring Guardians

As part of your estate planning, you might consider appointing an attorney or enduring guardian. We can explain the effect of these important appointments so you can make informed decisions and we can prepare the documents that are appropriate for your needs.

What is a Power of Attorney/Enduring Power of Attorney?

A Power of Attorney is a legal document whereby you (the principal) grants to someone else (the attorney) the authority to deal with certain legal and financial matters on your behalf. The Power of Attorney may be used in circumstances such as for convenience, while you are travelling, or if you just need some help managing your affairs. Your attorney can attend to matters like managing your finances, accessing your bank accounts, and paying your bills. A ‘general’ Power of Attorney such as this will no longer be effective if you are incapacitated.

An Enduring Power of Attorney comes into effect and/or continues to have effect if you are incapacitated and can no longer make decisions for yourself. The authority remains in place for as long as the principal is still alive.

You can prepare an Enduring Power of Attorney so that it takes effect immediately and continues if you suffer a loss of capacity, or you can specify that the power is only to come into effect if you become incapacitated.

Granting a Power of Attorney/Enduring Power of Attorney gives someone else considerable financial power and control over your affairs. You should only choose someone who you know will act in your best interests, and who is willing to take on the responsibility if the time comes. When signing the relevant documents, you must be capable of understanding the nature and effect of what you are doing.

Enduring Guardianships

If you appoint someone to act as your attorney, they are restricted to making decisions about your finances. If you want someone to make decisions about your health and lifestyle when you are unable to do so, you need to appoint an enduring guardian. An enduring guardianship is a legal arrangement that allows the appointed person (the guardian) to make personal and lifestyle decisions on behalf of an individual (the principal) who is unable to make those decisions themselves due to incapacity. These decisions may relate to healthcare, accommodation, and other personal matters. The enduring guardian is obligated to act in the best interests and according to the known wishes of the principal.

It is crucial to carefully consider the appointment of an attorney and/or enduring guardian and to clearly document the scope of their authority and responsibilities, including any limitations you want to include, while you have the capacity to do so.

If you need help, contact [email protected] or call 02 9997 7200 for expert legal advice.