The different types of Powers of Attorney to provide for the future

A General Power of Attorney

A general power of attorney is a document which allows you to appoint one or more people (named attorneys) to do anything that you can lawfully do, such as paying your bills or transferring your land.

You can choose when this power is to start, how many attorneys you appoint, and you can limit your attorney’s powers to specific decisions. Commonly, a general power of attorney is drafted for temporary purposes.

One example of when a general power of attorney may be useful is if you plan to travel overseas at the same time as selling your house. Signing and registering a general power of attorney with the titles office will appoint an attorney who is then able to sign the documents to settle the sale on your behalf.

A general power of attorney may be revoked (ended) by specifying in the general power of attorney when you want the power to stop, or by completing a form end the general power of attorney. Your general power of attorney will also end when you die.

A general power of attorney will not allow your attorney to make decisions for you if you lose the mental capacity to understand the effect of the document. Also, a general power of attorney does not allow your attorney to make personal health decisions. If you want your attorney to make financial decisions after you lose capacity or make health decisions on your behalf, you need an enduring power of attorney and/or and advance health directive.

Enduring Power of Attorney

An enduring power of attorney allows your attorney to make financial and/or personal health decision on your behalf, even if you lose the mental capacity to understand the effect of the document.

Just like a general power of attorney, you can appoint one or more people (named attorneys) to make financial decisions on your behalf, such as paying your bills or transferring your land. You can choose when this power is to start, how many attorneys you appoint, and you can limit your attorney’s powers to specific decisions.

On top of those financial powers, your enduring power of attorney may also allow your attorneys to make personal and health decisions on your behalf if you are no longer able to do so. Some examples of these types of decisions include what sort of medical treatment you receive, where you live and other day to day issues. If you wish to outline certain specific health care decisions, then an advance health directive may be appropriate for you.

An enduring power of attorney may suit your needs if you have been diagnosed with an illness and you know that you may not be able to make decisions on your own in the future. An enduring power of attorney will also be useful should you be involved in an unforeseen accident which leaves you without the mental capacity to make important decisions. In either case, with an enduring power of attorney, your trusted attorney can make sure that your financial needs and personal/health needs are taken care of.

It is important to know that, unlike a general power of attorney, your enduring power of attorney will not be revoked if you lose mental capacity. You may revoke your enduring power of attorney but only if you have the mental capacity to do so and if you complete the appropriate form. It is therefore critical that you chose the right person to be your attorney.

Your enduring power attorney will end when you die and may also be automatically revoked in certain circumstances, such as divorce or marriage. If you have an existing enduring power of attorney, it is critical to routinely review the document with your lawyer to make sure it is still in effect.

Advance Health Directive

An advance health directive allows you to make specific health directions for a range of medical conditions and comes into effect only if you lose the mental capacity to make your own health decisions.

An advance health directive will not cover all possible medical conditions however it does allow you to give some specific instructions to your attorney if you are terminally ill, in a coma, in a vegetative state or seriously ill. Examples of these instructions are whether you wish to receive antibiotics, assisted ventilation or artificial hydration/nutrition. These specific instructions take precedence over an enduring power of attorney.

Typically, it is a good idea to also draft an enduring power of attorney so that health decisions outside of the scope of an advance health directive can also be made by your attorney, if required.

The team at Millwater Tyrrell Law will provide you with advice tailored to your circumstances. Do not hesitate to contact our office for a free initial discussion about what would be suit your particular needs.