Ten common mistakes people make about a Power of Attorney, and how to avoid them!
Delay
Waiting until it's too late to set up a Power of Attorney (POA). You can only do it when you are still capable. So do it now. My husband had a stroke when he was just 38 years old.
Being pressured to appoint the wrong person
The wrong Attorney can misuse your money. A stingy Attorney might not spend enough on you. Only choose someone that you trust completely and who has your best interests at heart.
Not appointing enough attorneys
If something happens to one of your Attorneys, then your POA may fail. If you appoint multiple Attorneys carefully, then you can avoid this, plus they can act as checks and balances on each other.
Giving your attorney too much or too little power
For example, not insisting that they consult with your family or to follow your instructions on important decisions. Or not requiring reporting to your family. Or forgetting superannuation directions.
Using confusing or ambiguous wording
This happens too easily. It will make it difficult for your Attorney to make the right decisions. Confusion and disagreement may arise within your family. Legal shortcuts lead to long-term regrets.
Not updating your POA
Life circumstances change - death, divorce, children grow up, or your relationship with an Attorney might change. You should review your POA at least annually.
Not understanding the different types of POA
Some start at once, even when you are well. And others only start when you are incapacitated. Some stop if you are incapacitated while others keep going. And some stop when one Attorney dies.
Making mistakes in following the rules or trusting Artificial Intelligence
Failing to follow the legal formalities for your State will make your POA invalid. Follow instructions and get it properly witnessed straight away. And never trust Artificial Intelligence with a POA.
Not helping your loved ones financially
Clear authority is required for your Attorney to help others. Examples include financial support, care, housing, education, and gifts and especially for anyone who is not your spouse or child.
Thinking that filling in a blank form is OK
Blank or "Legal” POA forms are a “one-size-fits-all” choice. But a POA should be a personal document for you. Any bad choices or mistakes with the form can cause many years of problems and conflict.
Andrew Rogers, LLB
Legal Advisor to Wise Attorney