The financial enduring power of attorney

Where it is permitted under State/Territory law, a financial enduring power of attorney is a legal document. By signing it, you authorise a person to make financial and legal decisions for you.

The main difference between this and the general power of attorney is that a financial enduring power of attorney is valid even if you become mentally incompetent. This type of power of attorney is often used to plan for the future. For example, after cruising the Hootchee Pootchee River, you decide to tackle the mountains of Upper Mongolia. Alas, you fall and are unconscious for three weeks. A financial enduring power of attorney would enable your attorney - the person YOU have chosen - to make financial decisions for you during that three weeks. (By the way, a medical enduring power of attorney, where it is permitted under State/Territory law, would allow the attorney to make medical decisions during that time as well, but more of that later.)

Your attorney can make any legal and financial decision that you can make. So if you only want to appoint an attorney for a short time, perhaps you should use the general power of attorney rather than a financial enduring power of attorney.

Where it is permitted under State/Territory law, if you do this you may be able to decide whether you want your attorneys to make decisions "jointly" or "jointly and severally". "Jointly" means that both attorneys have to agree with the decision they make. "Jointly and severally" means that either attorney can make a decision by themselves.

• appointing attorneys to make decisions jointly and severally could be useful if one of your attorneys travels a lot; or
• if you want two people to make decisions for you, and you don't fully trust the judgement of one of them, then you can appoint them to make decisions jointly.
  

This type of power of attorney will last until:

• you cancel it (you must be mentally competent to do this);
• you die;
• you become bankrupt; or
• it is cancelled by an appropriate Court/Tribunal.

You can cancel an enduring power of attorney at any time, as long as you are mentally competent. Check whether there are formal requirements in your State/Territory, particularly if there are registration requirements. And don't forget to tell your banks or other agencies that have dealt with the attorney.

Read this: This fact sheet is intended to be general information about the law in Australia. It is not a substitute for legal or other professional advice. LAwscape Communications Pty Ltd, F2 Australia & New Zealand Pty Ltd or Moneymanager does not accept responsibility for loss to any person, who either acts or does not act because of this fact sheet.

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