Article of Interest on Wills & Estates

ENDURING POWER OF ATTORNEY 

An Enduring Power of Attorney is a powerful and often misunderstood appointment. It is misunderstood by the Appointor and regretfully, it is often misunderstood by the document maker.

The appointment of an enduring Attorney often flies under the radar. When you really think about this, you are entrusting your financial life to the person you appoint. However, it is often treated like an “add on” just like chips or salad with a steak. “Oh, do you want an Enduring Power of Attorney? It’s all wrapped up in the package price.” This sounds good, “I do.”

The appointment of a Power of Attorney is very different and far more significant for you than the appointment of the Executor of your Will. When the Enduring Power of Attorney is activated you are still alive. The attorney has been appointed by you to act in your best interest during your life and when you are not capable of managing your financial affairs. In comparison when your Will comes into effect you are dead. The actions of your Attorney have a far greater impact on you personally than those of your Executor. The person you appoint as your Attorney has a personal duty to you.

The Enduring Power of Attorney can create huge power struggles within families unless carefully drafted, explored and explained.

The appointment of an Attorney to act on your behalf after you have reached a stage of incapacity is a responsibility given in good faith demanding a response to the faith you have placed in the Attorney or Attorneys.

If you are incapacitated you want your Attorney to manage your estate and finances the way you would. You want them to preserve your Estate so that when you die your intentions embodied in your Will are capable of being carried out.

The document appointing an Attorney to act when you are incapacitated must be carefully drafted and contain restraints and checks. Taking the time to discuss this with your solicitor is a wise investment in peace of mind.

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