A General Power of Attorney ends if you lose mental capacity whereas an Enduring Power of Attorney continues even after you have lost mental capacity.

A General Power of Attorney is often used for short-term or specific needs, such as while you’re overseas. It becomes invalid if you lose mental capacity. An Enduring Power of Attorney, however, continues even if you cannot make decisions for yourself, ensuring your financial affairs are managed without interruption. 

It’s not mandatory, but it’s strongly recommended.

While DIY forms exist, a Power of Attorney is a powerful legal tool. If it’s not prepared or witnessed correctly, it may be rejected by banks or challenged later. A lawyer ensures drafted validly, reflects your wishes, and includes safeguards against misuse. It’s always best to protect yourself by having a Power of Attorney prepared by one of Lawpoint’s experienced lawyers. 

It starts when you decide and ends if revoked or when you pass away.

You can choose when the Power of Attorney takes effect; immediately, on a future date, or only if you lose capacity. It ends if you revoke it, your attorney resigns or dies, you lose capacity (for a General Power of Attorney), or when you pass away. 

In short, no one can legally manage your finances without a lengthy legal process. 

Without a Power of Attorney, your family or friends may need to apply to the NSW Civil and Administrative Tribunal (NCAT) to be appointed as your financial manager, which gives  authority to manage your affairs. This can be costly, time-consuming, and may result in someone you didn’t choose being appointed. 

TL;DR: Avoid stress and uncertainty by putting your Power of Attorney in place now. It allows your attorney to quickly and validly manage your finances in the urgent case that you need it. 

Your attorney can manage your money, property, and legal matters. 

An attorney can pay bills, operate bank accounts, buy or sell property, sign contracts, and handle dealings with government bodies. You can also place conditions or limits on what they’re allowed to do, so their authority reflects your wishes. 
 

No, your attorney can only attend to financial and legal matters.

A Power of Attorney does not cover health or personal care decisions such as medical treatment or where you live. For these, you must appoint an Enduring Guardian under the Guardianship Act 1987 (NSW). If you need help with a guardianship application, contact Lawpoint. 

An adult you trust completely with financial literacy. 

Your attorney must be over 18 and capable of handling financial matters. Many people choose a spouse, child, or close friend, but you can also appoint a professional such as a solicitor. The most essential qualities are trust, reliability, and financial responsibility.  

Yes, your Power of Attorney must be witnessed by an authorised person.  

For a General Power of Attorney, you must sign in front of a prescribed witness such as a lawyer. For an Enduring Power of Attorney, the witness must also certify that you understand the document’s effect. Incorrect witnessing can  invalidate the document, which is another reason by having a power of attorney lawyer oversee the process is so vital. 

Yes, you can change or revoke your Power of Attorney if you still have mental capacity.

You can revoke or update your Power of Attorney at any time while you have mental capacity. Revocation must be in writing and you should notify your attorney and any institution relying on the document. If it was registered, the revocation should also be registered. 

One covers finances; the other covers health and lifestyle.

A Power of Attorney allows someone to make financial and legal decisions for you. An Enduring Guardian allows someone to make personal, health, and lifestyle decisions if you cannot. Many people put both documents in place to ensure every area of decision-making is covered. 

The process of Estate Planning often involves the preparation of both documents, as well as writing a Will. Lawpoint offers fixed packaged prices. Contact Lawpoint to discuss your estate planning needs and a fixed price proposal.