There are 2 types of Powers of Attorney in New South Wales:
- A General or ordinary Power of Attorney which ceases to have effect when you lose legal capacity (i.e. become of unsound mind).
- Enduring Power of Attorney which will continue to operate even when you lose legal capacity.
There are strict guidelines relating to the form and execution of an Enduring Power of Attorney
If you create an Enduring Power of Attorney it can act as an effective safeguard against ill health and mental incapacity adversely affecting your financial affairs, as your Attorney can continue to make decisions for you.
An ordinary Power of Attorney can be useful in the event of overseas travel, temporary physical incapacity or if you require an Attorney to act for you in relation to a specific asset/transaction for a specified period of time.
The roles of an Attorney are:
- to take care of your property;
- to avoid conflicts of interest;
- to prove their authority where necessary;
- to consider your interests.
For more information on powers of Attorney, click here.