Why You Need A Power Of Attorney
A Power of Attorney appoints people you trust to make financial and legal decisions for you.
This includes when you are so unwell that you can’t handle this yourself. A Wise Power of Attorney also sets the rules about how and when they go about this.
Many people assume that their spouse or a relative will be able to make decisions for them and take charge and sign documents in their name if they are not well enough to do so for themselves.
This is rarely true in financial matters.
It is sometimes true in issues concerning your health, but there are many gaps in that. And some of the really hard decisions can’t be made just on the basis of being a spouse or relative.
Think about it. If you and your spouse/partner buy or sell a house, both of you need to sign. It is never enough for just one owner to sign.
Or, what about spouses who are separated but not divorced? As a legal spouse, should they have the right to operate their ex-spouse’s bank accounts or sell or mortgage a house? No!
Many people also think that this is only an issue for old people. It isn’t. Serious health issues and accidents can strike at any time. And it all has to be organised in advance while you are in good health. You and your family will not be able put these arrangements in place the day after you have a stroke or bad accident. That can be just too late.
A Wise Power of Attorney appoints one or more people to deal with your legal and financial affairs
You can specify that your attorneys may use their powers at any time that they think that they need to do something for you – even though you may not be legally incapacitated at that time. Or you can specify that they cannot use the Power of Attorney unless you become legally incapacitated and can no longer look after your own affairs.
You might already have an Advanced Care Directive or Enduring Guardian but no Power of Attorney. This will not help with your finances because it is strictly limited to things like medical care.
If you don’t have a Power of Attorney then an application has to be made to a Tribunal. You do not have any say about who they appoint. It might be a family member or friend, the Public Trustee, a lawyer or accountant or a Trustee Company. They don’t always follow what you would have wanted.
You can download Power of Attorney forms or use a basic “legal” service.
These take a “one-size-fits-all” approach. See our list of Ten Common Mistakes people make about a Power of Attorney and how to avoid them!
I recommend using Wise Attorney.com.au for a Professional Quality Power of Attorney online or seeing a local lawyer.
Andrew Rogers, LLB
Legal Advisor to Wise Attorney