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Alpass & Associates
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Kilsyth VIC 3137
Ph: 03 9725 0377
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Powers of Attorney (Medical and Financial)
A Power of Attorney is a power, which allows someone you trust to act on your behalf.
There are three types of Power of Attorney:
General Power:- This power is usually given to a trusted person for a limited purpose, such as to act while you are overseas, to sell your house for a certain amount or while you are in hospital and do not wish to be concerned with the usual matters such as operating a bank account. This power ceases to operate immediately that the person giving the power (donor) becomes a bankrupt, becomes mentally or physically incapable of running his/her affairs or dies.
Enduring Power:- This power given to a trusted person (donee) continues even if the donor becomes mentally or physically incapable of running their affairs. This power is very extensive and therefore the donor must demonstrate they understand the extent of the power and accordingly must be able to answer a range of questions concerning their understanding of the effects of granting an enduring power. This power is given in many cases where a person is elderly and wants their children or a trusted person to make decisions regarding their welfare etc. when they are no longer mentally or physically capable of doing so. If an Enduring Power is not in place and a person becomes mentally incapable of handling their affairs then a family member or trusted person must apply for a Guardianship Order from the government before someone can act on their behalf. Once a person becomes mentally incapable of running their affairs they are also incapable of appointing an attorney.
Medical and Financial Enduring Powers:- As the names suggest these powers limit the donee to acting in regard to specific matters relating to medical treatment, including the power to refuse medical treatment if you become incompetent. This power has to be used in accordance with strict guidelines. Similarly a financial power authorises the donee to act in the donor's place and do all things that the donor could lawfully do.
In all of the above types of Power of Attorney there are rules as to the form of the document and the method of appointing the donee. A Power of Attorney must be in the form of a written document. The Power of Attorney must be signed by the donor, in front of two independent witnesses. The donee must acknowledge the appointment by signing the document and finally a certification by a solicitor stating that the Donor understands the legal implications of giving such a power must be included at the foot of the document.
We will be pleased to advise you with regard to your individual situation and can assist you in deciding when and if you should appoint an attorney.