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Power of attorney
A power of attorney is a document that gives a person nominated by you the power to act on your behalf. It allows the attorney to sign or do anything that you yourself can legally do, subject to any conditions or limitations stated in the document. A power of attorney enables your affairs to be managed by the attorney when you prefer not to conduct them personally. Powers of attorney can be used for almost any purpose, including operating a bank account, paying a bill, to collect debts, vote at meetings or any other function which can be lawfully delegated. For example, if you find it hard signing documents through loss of vision or unsteady hands, a power of attorney lets you delegate the management of your affairs to someone you trust.
A general power of attorney does not give your attorney the power to make personal, medical or lifestyle decisions for you. You may choose to execute an enduring power of attorney or appoint an enduring guardian for this purpose.
To give a valid power of attorney, you must be mentally competent and you must understand the nature and effect of the power being granted. You can revoke a power of attorney at any time, as long as you continue to be mentally competent. A general power of attorney ceases to have effect if you become mentally incompetent, but an enduring power of attorney does not automatically cease to have effect if your mental capacity deteriorates.
If a person is unable to manage their own legal and financial affairs due to mental incapacity and does not have a valid enduring power of attorney, it may be necessary for the Guardianship Board to appoint an administrator to make those decisions for the donor.
Read more: Guardians and administrators
Enduring Power of Attorney
An enduring power of attorney allows you to delegate the management of your affairs even if you’re no longer able to understand the implications such as if you become mentally incapacitated. However, an enduring power of attorney can only be given while you’re able to understand the nature and effect of the document. There are special rules about the creation of enduring powers of attorney and the responsibilities of the attorney.
