Power Of Attorney & Enduring Guardian – Part 1
Since beginning the practice 2 years ago one question I am consistently asked is what is the difference between a Power of Attorney and Enduring Guardian? This month I will look at Power of Attorney which is as important for life planning as making a Will.
Many people prepare a Will but do not give the same consideration to appointing an attorney until it is too late. By appointing an enduring attorney, you are choosing who you want to manage your financial and legal affairs, even if you lose mental capacity.
If you lose mental capacity, without an enduring power of attorney in place, there may be no one with the legal authority to manage your financial affairs. Your family or advisers would then need to apply to the State government to have someone appointed.
There are other reasons to consider appointing a Power of Attorney either enduring or for a specific time such as you may:
• wish to be free of the day to day demands of financial paperwork and record keeping;
• be going overseas and don’t want to deal with these affairs while you’re away;
• find the demands of financial management have become too much for you to handle on your own.
When considering who you choose to appoint it needs to be someone you TRUST with your affairs and finances. The person you appoint does not need to be a family member and can be an independent trustee.
Next month I will discuss Enduring Guardian, otherwise if you have a need to appoint an attorney or guardian contact Geoff Yeo at Peacockes Solicitors for assistance.