What is an Enduring Power of Attorney?
An Enduring Power of Attorney is a legal document that gives one or more person/s the authority to manage the financial affairs of another, for the duration of that other person’s lifetime. The principal (the person making the Enduring Power of Attorney) appoints one or more attorneys (trusted people) who agree to be in charge of the principal’s bank accounts, property, shares, crypto-currency, NFTs, and investments, should the need arise. An Enduring Power of Attorney is not only important for those considering that they may lose capacity, it is equally important for people who go overseas and want their financial affairs to be managed while they are away.
Difference between Enduring Power of Attorney and Power of Attorney
As the name would suggest, an Enduring Power of Attorney is for the duration of the principal’s lifetime, whereas a simple Power of Attorney is often only for a limited time. Another distinction between the two documents is that an Enduring Power of Attorney continues even if the principal has lost capacity, while a simple Power of Attorney does not. Both of these documents can be revoked by the principal, so long as he/she retains capacity to do so.
Why should property owners make Enduring Powers of Attorney?
For most people, their home is the biggest investment they make in their lifetime. Additionally, statistics show that 1 in every 13 Australians has a negatively geared investment property. These reasons alone would indicate that the making of an Enduring Power of Attorney is an important consideration for every property owner.
Important Disclaimer: The content of this article is general in nature and for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be obtained before taking any action based on this publication.