Powers of Attorney

What is a Power of Attorney?

A Power of Attorney is a legal document that enables you to appoint a person or a licensed Trustee Company (called an 'attorney') to make legal and financial decisions on your behalf. These decisions may relation to your financial affairs, medical treatment or even where you live.

Why you need one

Nominating an attorney is a prudent measure in case you become incapacitated and unable to manage your own affairs. From time to time, an attorney can be appointed to act on your behalf for a limited period – such as managing your affairs while you are overseas for an extended period.

Types of Power of Attorney

1. General Power of Attorney
   You appoint someone to make legal and financial decisions for you, usually for a specified period of time. If you lose mental capacity, your General Power of Attorney lapses immediately.   

2. Enduring Power of Attorney (Financial)
   You appoint someone to make legal and financial decisions for you. If you lose mental capacity your Enduring Power of Attorney remains valid. 

3. Enduring Power of Attorney (Medical Treatment)
   You appoint someone to make medical treatment decisions for you in the event you lose capacity. 

Choosing your attorney

Your choice of attorney is the most critical decision in the process. You need to be confident your attorney will be able to manage your financial and legal affairs properly and prudently in accordance with your instructions, in your best interests and according to statutory requirements.

One decision you need to make is whether to appoint a professional attorney such as Equity Trustees. Some of the benefits of appointing Equity Trustees as your attorney are:

• We can draw on a broad range of internal expertise to administer your affairs.
• We have the technology and custody systems to comply with all recording and reporting requirements.
• We have a culture of client empathy stemming from our fiduciary duty when acting as trustee. Our client’s interests are paramount and we can always be relied upon to act impartially and only in your best interests.
• We pay close attention to risk control and ensure that the appropriate operational checks and balances are in place to protect our client’s interests.
• We will always endeavour to ensure that our actions, in acting as your attorney, will not upset the provisions of your will.
• If you appoint an individual, you need to be aware that they may become incapable of acting (due to death, incapacity or unavailability) or be unwilling to act due to the increased responsibilities imposed upon the role. In appointing an attorney you are not bestowing an honour upon them. Quite to the contrary, an attorney’s role can be onerous, making them personally liable if they make inappropriate decisions in the handling of the assets under their care.

Appointing an attorney

An Enduring Power of Attorney gives you the opportunity to plan ahead (especially if you become incapacitated) and ensure that your financial affairs are handled in the manner you wish.

To appoint an attorney you need to:

• Complete, sign and have properly witnessed an Enduring Power of Attorney (Financial) document - giving power of attorney to someone you choose.
• On the form you can specify the powers you are giving and when they begin and place conditions or restrictions on the decisions your attorney can make. 
• Your attorney must consent to the appointment by signing the acceptance section of the form. 
• Your attorney's decisions have the same legal force as if you had made them yourself.

Equity Trustees can prepare the document on your behalf.

Contact us

For more information about Powers of Attorney or to discuss your personal situation, contact one of our Client Relationship Managers on 03 8623 5000, 1300 555 511 or click here.