TWO weeks ago I explained the importance of making a legal will and touched on appointing a power of attorney.
This week, I'm going to fully explain the topic of appointing a power of attorney.
Many people have a will to let others know their wishes after they die, but what if you were faced with an accident or illness and were unable to make decisions for yourself?
Have you given people the right legal authority to make decisions on your behalf if you are unable to?
As with a will, you can make legal documents that allow decisions to be made that take into account your wishes.
The difference is that these documents allow you to control who will make financial, medical and/or lifestyle decisions while you are still alive.
An attorney does not have to be a lawyer; it can be anyone you trust to make decisions on your behalf, like a family member or friend.
There are four types of powers of attorney.
A general power of attorney is where you appoint someone, usually for a specific period of time, to make financial or legal decisions for you, often a popular choice for those travelling or living abroad for a specified period of time.
If you appoint a general power of attorney and then lose legal capacity at a later stage the appointment will no longer be valid and the person you have appointed will no longer be able to make decisions on your behalf.
There are then three types of Enduring Powers of Attorney, financial, medical treatment and guardianship.
These are where you appoint someone to make financial or legal, medical treatment or lifestyle decisions for you in the event of you losing, at some time in the future, the capacity to make specific decisions for yourself.
As for who to appoint, you need to make that decision yourself.
You should try to appoint someone who you have grounds for believing is trustworthy and who both knows you well enough - and is objective enough - to make the decisions that are in your best interests.
With a general power of attorney and an enduring power of attorney (financial) you can appoint joint decision-makers and stipulate, if you wish, that both of them have to agree for their decisions to be valid.
You need to fill out the appropriate form and give it to the person you have appointed and keep a copy for yourself.
The forms are available from Victoria Legal Aid and the Office of the Public Advocate, or your solicitor can provide advice.
The signing of some of the forms will need to be witnessed.
You can revoke the appointment by telling the attorney or guardian that their power is withdrawn and by destroying the document and any copies.
*Sara Morrison is business development manager at South West Credit.
Email a friend