Power of attorney
A power of attorney is a legal document in which you appoint someone to make financial, legal or medical decisions on your behalf. Depending on the extent of the power, the appointed person is given authority to make decisions as if you were making them yourself.
There are different types of power of attorney (eg general, enduring and irrevocable) which are suited to different circumstances. There are also slight variations in the law between states.
Why take out a power of attorney?
A power of attorney can be a very powerful tool in the organisation of your financial matters and personal affairs. A power of attorney is particularly useful if you travel or become physically or mentally incapacitated.
Case study
Ben goes overseas to Thailand for a holiday. His daughter Sally is taking care of the bills while he is away. Ben didn’t appoint Sally as power of attorney, so she has no authority to deal with his finances or sign legal documents on his behalf. Had Ben provided Sally with a General Power of Attorney, she would have been able to conduct Ben’s affairs in his absence.
While Ben is overseas, he is critically injured in a car accident and loses mental capacity. There is no one authorised to act on Ben’s behalf. This means that no one is able to pay expenses (such as medical expenses) for Ben from his existing funds without a court order.
Had Ben returned safely, he could simply have revoked the Medical Enduring Power of Attorney and the General Power of Attorney in writing if he didn’t want Sally to continue managing his affairs.
How do I organise a power of attorney?
A power of attorney should be prepared by your solicitor. Standard forms are available from newsagents, but they should at least be checked on completion to ensure there is no error that would make them invalid.
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As at 30th March 2011, AXA Asia Pacific Holdings Limited and all of its Australian and New Zealand subsidiaries ceased to be members of the Global AXA Group and became members of the AMP Group.
