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Power of attorney
There are two types of power of attorney:- general power of attorney
- enduring power of attorney.
Basically, a general power of attorney is given to someone to make financial decisions on your behalf when you are absent, for example, if you are overseas and need someone else to sell your house or pay your bills.
An enduring power of attorney is put in place in the event something happens to you - usually illness or accident - that you will be unable to make your own decisions.
Both types involve a formal agreement giving someone else the power to make decisions on your behalf. It works like this:
- You sign a form giving power of attorney to the person of your choice
- You specify the types of decisions that the person you choose will make
- The person agrees to the appointment under an Enduring Power of Attorney by signing the acceptance section of the form. This makes them your attorney. (Note: The person is not required to sign the form under a General Power of Attorney.)
- Your attorney can then act on your behalf if necessary.
The decisions that your attorney makes for you have the same legal force as if you had made them yourself.
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