Do I need a Power of Attorney?
There may be a time in your life when it is necessary to appoint someone to manage your financial or personal affairs.
You, in giving a power of attorney, are known as the “donor” and the person you appoint to act is known as the “donee”.
The appointment of a power of attorney can be over a short or long period of time.
In general terms, giving a power of attorney to someone who is not absolutely trustworthy can be very dangerous.
General Power of Attorney
This appoints a person to act on your behalf whilst you still have legal capacity.
For example, it may be put in place when a donor travels overseas for a specified time frame.
A general power of attorney ceases when you die or if you become legally incapacitated.
Enduring Power of Attorney
If you want to have someone who can act for you if you become legally incapacitated, you must create an enduring power of attorney.
This continues to operate even after you become legally incapacitated.
For example, it would continue to operate should you suffer a mental incapacity due to an injury or if you can’t communicate properly.
Appointing an enduring power of attorney means your financial affairs could be looked after by someone you know and trust in the event you become legally incapacitated.
The donee must exercise their powers as attorney with reasonable diligence to protect the interests of the donor and, if they fail to do so, may be liable to compensate the donor for losses due to the failure.
The donee of an enduring power of attorney should keep and preserve accurate records and accounts of all dealings and transactions made in pursuance of the power.
Things to Consider
In South Australia, legislation regulates the operation of powers of attorney.
You can’t create a power of attorney after you have become legally incapacitated.
You can revoke your enduring power of attorney at any time as long as you still have legal capacity.
A power of attorney does not cover health care, residential or personal lifestyle choices. These require an Advance Care Directive to be prepared.
Get help from an experienced lawyer
If you need assistance with preparing a power of attorney, our experienced lawyers can guide you through the process and help you understand your options.