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Powers of Attorney in the ACT – What You Need to Know
Andrew Byrnes Law Group • Jul 13, 2020
Making a power of attorney is becoming more common practice in the Australian Capital Territory. Doing so can provide a number of benefits, such as the ability to plan ahead in case your decision-making capacities are impaired and the access to a representative who can protect your interests should you lose decision-making capacity.
Given its significant advantages, a surprising number of Australians are rather unfamiliar with what a power of attorney actually entails. If you are facing a similar level of uncertainty, this article will help clear things up for you.
What is a power of attorney?
A power of attorney is a legal document that grants a person (attorney) the power to exercise general or specific powers on behalf of the person (principal) who made the document.
These powers can include making decisions on matters involving the following:
Property matters can involve decisions regarding the payment of the principal’s financial obligations, the acquisition of insurance on the principal’s behalf, real estate, and the management of the principal’s trade or business.
A personal care matter includes decisions involving the principal’s welfare, such as where they live and who they live with, whether or not they can work, and what kind of education they can have access to.
Healthcare matters are more limited, in that they typically involve decisions regarding the withholding or withdrawal of medical treatment for the principal and whether or not they consent to it.
Lastly, medical research matters deal with decisions that relate to the principal’s participation in certain types of medical research trials.
General vs Enduring Power of Attorney
It’s important to know that there are two main types of power of attorney: general and enduring powers of attorney.
A general power of attorney operates for a specific period and does not necessarily operate after a principal loses decision making capacity. An enduring power of attorney instead can operate indefinitely and is operative even after the principal has lost this capacity. Note that an enduring power of attorney can still function in the same way as a general power attorney for property matters as long as the principal still demonstrates decision-making capacities.
Important Considerations
Given that a power of attorney can grant another person significant legal powers, it’s important that you know how to make one properly so that your interests remain protected.
A few things you should know about are the following:
- You can limit your attorney’s powers by citing specific stipulations within the document. This can be in the form of specifying exactly what type of matters the attorney can make decisions for as well as outlining certain conditions that have to be met before they actually have the power to do certain things.
- If specified, the power attorney can be enforceable immediately at the time that you make it.
- You can revoke a power of attorney that you made at any time. However, there can be cases with enduring powers of attorney where a principal may be prevented from revoking the document.
Conclusion
In any case, note that the attorney you grant powers to does not necessarily have to be a lawyer. It is usually more important that you give these special powers to someone you trust deeply. A power of attorney can be of great use, but it can also be dangerous if you’re not careful and if you do not prepare it properly.
Need to make a power of attorney that means your interests well-protected? Get in touch with us today. We are civil lawyers and estate planning lawyers serving Canberra, Wollongong, Queanbeyan, Goulburn, and surrounding locations in Australia, and we’d be more than happy to help!
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