What is a power of attorney?

Jasmine Shillington Updated by Jasmine Shillington

A power of attorney is a legal document that authorises a trusted person to make financial and legal decisions on behalf of another.

Type of power of attorney

When to consider

A general power of attorney is usually limited to specific purposes, for a specific task or for a certain period of time.

A general power of attorney ends when:

  • it is cancelled;
  • the person who made it dies or becomes mentally incompetent;
  • the person who made it becomes bankrupt; or
  • the expiry date that is written on the document has passed.

A general power of attorney should be used if you want a temporary arrangement in place for a specific purpose such as:

  • Appointing someone to buy or sell real estate or trade shares.
  • While you’re away for a period, e.g. being deployed, on holidays, etc.

An enduring power of attorney is a legal document that appoints a trusted person to make financial and legal decisions on behalf of another person. The main difference between an enduring and a general power of attorney is that an enduring power of attorney is valid even if the person who made it becomes mentally incompetent. For this reason, an enduring power of attorney is often used as a precaution for unexpected events.

An enduring power of attorney will last until:

  • it is cancelled by the person who made it (they must be mentally competent to do so);
  • the member who made it dies or becomes bankrupt;
  • the attorney dies or can no longer act as the person's attorney; or
  • it is cancelled by the Supreme Court who is satisfied that it is not in the maker's best interest.

An enduring power of attorney should be used if you want a long-term formal arrangement in place, including:

  • Planning for future incapacitation due to illness or injury,
  • In anticipation of losing the ability to manage your financial affairs.

For more information about appointing or cancelling a power of attorneys, contact your State or Territory Public Trustee's office or Public Advocate.

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