POWERS OF ATTORNEY
Powers of Attorney are legal documents whereby you authorize another person or persons to act on your behalf. The person(s) appointed by you are referred to as your "Attorney". When choosing your Attorney ensure that person is someone you trust and is someone who is willing to manage your financial and property matters in your best interests. There are two types of Powers of Attorney:
1. Power of Attorney for Property, which allows your Attorney to deal with your financial affairs, such as your home, bank accounts, investments, payments of bills, etc, while you are alive, but incapacitated either physically or mentally, such as a stroke or a coma. With this Power of Attorney, your Attorney can sign documents, sell assets, make investments and do anything else that you can do. An attorney cannot sign your Last Will and Testament on your behalf, nor can he sign or create another Power of Attorney for you.
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2. Power of Attorney for Personal Care, which allows your Attorney to make personal decisions with respect to your housing and living arrangments, your health care and medical treatment, only if you become mentally incapable of making your own decisions.
To be in a position to sign a Power of Attorney, you must be competent (capable of understanding) the authority you are granting in the Power of Attorney.
In the event you cannot manage your affairs in the future by reason of an accident, illness or mental incapacity, your Power of Attorney will enable your attorney to protect your interests.
In the event you do not have a Power of Attorney, the right to make decisions on your behalf by a family member would not be permissable and therefore your family member would have to apply to the Courts to be given the authority to act as your attorney. If a member of your family does not make an application to the Court, then the appointment of your Attorney and all decisions on your behalf may be made by the Government's "Office of the Public Guardian & Trustee". It is wise to appoint a person you trust to make such decisions for you.
Your Power of Attorney will be prepared to satisfy your specific requirements by including specific conditions or requirements. The following are examples of what types of clauses may be included in your Power of Attorney:
- You may prohibit your attorney from dealing with a particular situation or restrict them to act only in a specific situation, for example, for the sole purpose of selling a specific property
- You may restrict the Attorney’s power requiring the attorney to consult with family members or professionals on any decisions
- Any concerns you have to ensure the proper management of your affairs
- You can appoint one or more persons with an alternate or substitute person in the event your original choice of Attorney is unable or unwilling to act
- If you decide to appoint more than one attorney, all decisions must be made jointly by them, unless you specify that they can act separately
To entrust someone with the power to manage your financial affairs and personal care, can be worrisome, but by selecting the right person, it can be reassuring to you to know that your affairs will be carefully and sensibly managed according to your instructions.
Remember, a Power of Attorney is valid while you are alive. Upon death, your Last Will and Testament takes effect. Also, you do not have to be elderly to require a Power of Attorney. For example, you might be only 25 years old and have the misfortune of being in a car accident resulting in you being unable to handle your personal affairs, at which time the attorney appointed by you in your Power of Attorney can step in.
