If you are like many Australians, you know what a Power of Attorney is, but have put off setting it up for yourself as a Plan B should something serious happen to you. The reality is that with a Power of Attorney document in place, you will have peace of mind knowing that your affairs will remain in order during a time in your life when you may not be able to manage them yourself.
But what type of Power of Attorney should you get? There are two different types: General Power of Attorney and Enduring Power of Attorney. Both have specific guidelines controlling what they allow.
Let’s look closer at those differences:
General Power of Attorney
A General Power of Attorney is considered a restricted option. That is because it is only valid for either a set timeframe or specific transaction.
Enduring Power of Attorney
An Enduring Power of Attorney is not as restrictive as a General Power of Attorney, as it remains valid when a person loses their mental capacity. In other words, if you have an Enduring Power of Attorney in place and happen to lose mental capacity, the person you have designated to take care of your affairs will be able to do that without issue. This is a great option so that legal and financial matters are handled when you are not capable.
What Can or Cannot Be Done
The restrictive nature of a General Power or Attorney means that only designated duties are permitted. For example, if you are shopping for real estate and happen to leave the country on other business. The person you grant General Power of Attorney can complete the real estate purchase on your behalf.
On the other hand, the person you designate for an Enduring Power of Attorney is granted an almost limitless scope of duties. Typically, this does not launch until you have either lost your mental capacity or started showing signs that you are no longer capable of making practical legal or financial decisions.
Power of Attorney Lifespan
A General Power of Attorney has a much shorter lifespan than an Enduring Power of Attorney. For example, a General Power of Attorney may only last long enough to complete a single transaction or task. An Enduring Power of Attorney lives much longer and covers several different tasks. The only similarity between the two types of Power of Attorney is that each expires upon the death of the person who had the documents drawn up.
A General Power of Attorney has a much shorter lifespan than an Enduring Power of Attorney. For example, a General Power of Attorney may only last long enough to complete a single transaction or task. An Enduring Power of Attorney lives much longer and covers several different tasks. The only similarity between the two types of Power of Attorney is that each expires upon the death of the person who had the documents drawn up.
The Paperwork Process
You start off by consulting with a legal professional. Based on your needs, they will determine which type of Power of Attorney is best suited for the situation. The legal team then draws up the documents designating the person you have chosen to fill in the role as decision maker for you. You should have selected someone you trust who accepts the designation before the paperwork is processed. Once the paperwork is completed and you have approved of it, the Power of Attorney is available whenever you need to exercise it.
The importance of having either a General or Enduring Power of Attorney in place cannot be understated. There is no way of knowing when you may need one, and without a Power of Attorney, you risk many issues that could have been avoided. If you view the process as a safeguard that is available “just in case” something happens, you will be seeing it in a healthy light and not as a chore.
Are You Considering the Power of Attorney?
Even if you have few assets, you still have financial and legal obligations. Should you become incapacitated, having a Power of Attorney in place ensures your affairs continue to run smoothly without interruption. If you feel it is time to consider such a move, contact GKS Law. They are your will and estate lawyers in North Brisbane. GKS Law can help you develop the correct Power of Attorney for your needs. Contact them today.
Conclusion
Many Australians risk issues with their financial and legal matters as they do not have a Power of Attorney in place. Don’t be like them. Protect your assets and reputation by designating someone you trust to be your Power of Attorney. See your local estate litigation lawyers in Brisbane to draw up either a General or Enduring Power of Attorney document for your records. Taking this step not only gives you a legitimate Plan B, but it will also give you peace of mind knowing you have everything covered in case something happens to you.
