Enduring Power Of Attorney vs. A Power Of Attorney
A power of attorney (or POA) is a person that is appointed by you to help take care of your finances in case you are incapacitated. A power of attorney can be appointed by you to manage your investments, your personal finances, or both. This is a great first step in estate and financial planning, but it is not enough.
A power of attorney can only accept legal and financial commands from you. If you become incapacitated and someone needs to pass on your financial assets to your children, a power of attorney is not able to achieve this, if you have not appointed someone else to make these decisions for you.
This is why an enduring power of attorney is so essential. An enduring POA is a person you have appointed to make decisions for you in case you become fully incapacitated. It is a legal document that will go into effect immediately. However, if you have not appointed a beneficiary, the enduring POA may not be able to make all of the decisions necessary to protect your children’s inheritances.
Who Should You Designate As Your Attorney?
Ideally, you should select a person who has been close to you since you began to accumulate assets. This person should be close enough to you that you feel comfortable letting him/her handle your affairs when you are unable to do so. This person should also be someone who has a long-term financial outlook.
The person you have selected should also have the ability to take on the responsibility of the position. In the event that your attorney passes away before you, you will want to make sure that there is another person who is dedicated to carrying out your wishes.
What Authority Can You Give An Attorney?
The most important aspect of an enduring POA is that it gives you the ability to appoint a person to make decisions for you, even when you are incapacitated. Some of the things that your power of attorney can do for you include:
- Signing legal documents
- Buying or selling property
- Making financial decisions
- Arranging care for you
- Making decisions about your medical treatment
Conclusion
An enduring power of attorney needs to be someone you whole heartily trust, they make decisions that will impact your finances and care and treatment, in the advent you become incapable of completing these tasks of your own volition. To learn more about other steps you could take to protect your assets, schedule a consultation with a specialist.
If you are looking for family lawyers you can trust, come to Springfield Legals. We are a law firm specialising in family law, property and business conveyancing and income protection and succession planning. Interested parties may call (07) 3288 3511 today!