We recently wrote about the importance of a General Power of Attorney.
This blog looks at some of the key features of an Enduring Power of Attorney and builds on our estate planning series.
The main difference between a General Power of Attorney and an Enduring Power of Attorney is that the latter continues to operate after the principal has lost mental capacity.
Why make an Enduring Power of Attorney?
- it is important to make an enduring power of attorney while you have the mental capacity to do so;
- it is a sensible and easy way to prepare for your future; and
- by making an enduring power of attorney, there will be someone who can legally look after your legal and financial affairs if you become unable to do so.
You do not lose any of your rights by making an Enduring Power of Attorney. It only operates once you lose mental capacity.
An enduring power of attorney can be revoked at any time that the principal still has mental capacity to do so. If the enduring power of attorney has been registered it is prudent for any revocation to also be registered.
An Enduring Power of Attorney does not give the attorney any power to make health/medical or personal decisions for the principal. If you would like someone to make lifestyle decisions for you, that is a separate legal document known as an Appointment of Enduring Guardian.
Many things need to be considered before making such an important legal document. Certain limits may need to placed on the extent of an attorney's power or other considerations specific to an individual's needs must be addressed. It is essential that anyone wishing to prepare any of these documents seeks legal advice. ClickLaw can assist in this area; if you would like to know more, click on the link below and one of our experienced lawyers will be in touch. Or give our team a call on 02 8005 3955.
clicklaw.com.au
