Article by Manny Wood published in the Coffs Coast News Of The Area on 4 October 2024.
After a recent health scare, Peter decides to talk to a specialist solicitor about putting a Power of Attorney (POA) in place.
Peter is advised that a POA allows him to appoint someone (an attorney) to manage his financial affairs. In Australia, a reference to an attorney is not a reference to a lawyer or a solicitor. In fact, an attorney is normally not a lawyer, but a member of one’s family or a friend who is entrusted to manage financial matters.
An appropriate attorney may not be the same person who is appointed as one’s executor under a will and it may not be the same person who is appointed to manage health related decisions under an Appointment of Enduring Guardian. It is important to understand the distinction between these three documents and to consider who is best suited for each specific role.
Peter’s adult son resides with him in Peter’s home. His son suffers from a number of health problems which prevent him from obtaining fulltime employment. Peter is advised by his solicitor that it is important to draft specific provisions in the POA document to make it clear that his attorney can “confer benefits” on Peter’s son to meet his reasonable living and medical expenses. Peter also wishes for his son to be able to continue to reside in his home, should Peter lose the capacity to consent to him doing so. The solicitor advises that his POA document needs to contain tailored provisions to achieve this goal.
With a view to maintaining Peter’s autonomy whilst he is able to manage his own affairs, the POA is restricted to only be “activated” if Peter loses capacity and a medical practitioner evidences this in writing. In this respect it is a “just in case” document. POAs that continue to operate if one loses capacity are referred to as “Enduring” POAs because they “endure” a loss of capacity.
For more information regarding appropriately tailoring POAs, email Manny Wood, Principal Solicitor and Accredited Specialist in Wills and Estates at TB Law at manny@tblaw.net.au or call him on (02) 66 487 487. This fictional column is only accurate at today’s date and is not legal advice.