With recommendations for high risk individuals to stay home, yourself or a family member may have to attend a bank or other business in person, on behalf of someone who is self-isolating. Unfortunately, you may find that you are limited as to what you can do for your family member unless you have been authorized to act on their behalf, or have what's known as a Power of Attorney.
A Power of Attorney is essential when it comes to providing you a way to have someone else assist with your finances and lifestyle should you be unable to do so yourself. There are two types for you to choose from, a general Power of Attorney and an Enduring Power of Attorney.
So what's the difference?
The general Power of Attorney is where a person referred to as the “Principal” appoints a person to handle their financial affairs referred to as the “Attorney” while the Principal is incommunicado i.e. self-isolating or away on holidays. A Power of Attorney is usually limited to a certain period of time, and in the case of the Coronavirus, might be worth considering if you have a high risk family member who will be self-isolating for the next 3-6 months.
The second Power of Attorney is an Enduring Power of Attorney, this is where a Principal appoints an Attorney to manage their financial affairs and if the document is registered with the Land Registry Services the Attorney can sell the Principals property. The important point is that an Enduring Power of Attorney continues to operate when the Principal has lost their ability to manage their financial affairs.
For obvious reasons the person you appoint as your Attorney has to be absolutely trustworthy.
It's important to know that you can:
· Specify when the Attorney’s appointment commences;
· Outline what powers the Attorney has, and
· Providing you have capacity, you can revoke the Attorney’s appointment at any time.
If you have any questions about establishing a Power of Attorney, or other options relating to Wills or Estate planning, you can contact us on 1800 650 656 in Bathurst, Oberon or Lithgow. We're here to help you and your family!
Peter McManus | Solicitor