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.
While both enduring power of attorney (EPOA) and general power of attorney grant authority to your chosen representative for decision-making, a crucial disparity exists between the two. With an EPOA, the authority persists even if you become incapacitated, enabling your representative to act on your behalf in such situations. Conversely, under a general power of attorney, once you lose the capacity to make decisions, your representative also loses the authorization to act on your behalf. Additionally, a general power of attorney does not extend to appointing a representative for personal matters, including those that are health-related.
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, if you become incapable of completing these tasks on your own. To learn more about other steps you could take to protect your assets, schedule a consultation with our specialist.
If you are looking for solicitors, you can trust, come to GLG Legal Springfield. We are a law firm specialising in Wills and estates, property and business, conveyancing and other areas. Cal us at (07) 3288 3511 today.