An enduring power of attorney is a legal document that allows you to appoint someone you trust to make decisions for you during your life-time if you no longer have the capacity to do so. An enduring power of attorney usually takes effect when you lose capacity to manage your own affairs, but there is provision to allow for someone to make financial decisions for you when you still have capacity.
Losing capacity does not just happen to people who are ageing or terminally ill. It can happen at any time. A person may lose capacity either temporarily or permanently. There are several circumstances when a person can lose capacity for decision making. These can be due to intellectual or psychiatric disability, mental health reasons, acquired brain injury, dementia, or temporary illness.
Who should make an enduring power of attorney?
If you are over 18 and have capacity to understand the nature and the effect of the power you are giving, it’s important you consider making an enduring power of attorney. Every person over the age of 18 should put in place an enduring power of attorney.
What is an attorney?
An attorney is the person you appoint to manage your financial affairs and or personal/ health matters if you are unable to do manage these yourself. You can have more than one attorney. You attorneys can act jointly, severally (any of them can act), or successively.
You can specify when your attorney’s powers begin and what powers they will have. You can limit or add to the powers you give your attorneys.
What does an attorney for financial matters have the power to do?
A financial attorney can:
- pay your bills
- prepare your tax returns
- manage your investments
- sign certain documents on your behalf.
What does an attorney for personal and health matters have the power to do?
An attorney for personal matters can make decisions about where you will live, who you will live with and your day-to-day activities. An attorney for health matters can make certain medical decisions on your behalf, including what treatment options and medication you receive.
What happens if my attorney mismanages my affairs?
An attorney is personally accountable for their actions. If they fail to exercise their responsibilities with honestly, and with reasonable care and diligence they may be removed from the role of attorney and could be convicted of an offence and ordered to pay compensation.
Requirements for making an enduring power of attorney
To make an enduring power of attorney, you need to be able to:
- understand the nature and effect of a decision,
- freely and voluntarily make those decisions, and
- communicate the decisions in some way.
If you are over the age of 18 and do not have an Enduring Power of Attorney in place it is important you give serious consideration to putting one in place to ensure that if something happens to you the right people are nominated to step into your shoes to manage your financial affairs and personal/health matters.