Reasons Why You Might Need a Power of Attorney

17 Nov

A Power of Attorney (POA) is a legal document that allows someone to make decisions on your behalf. In Victoria, there are different types of powers of attorney, each serving a specific purpose.

Here are some reasons why you might need a power of attorney in Victoria:

Managing Financial Affairs:

General Power of Attorney (GPA): This allows someone to manage your financial affairs on your behalf. It is often used for a specific period or in certain circumstances, such as when you are overseas.
Enduring Power of Attorney (Financial): This document remains effective even if you lose mental capacity. It allows the appointed person (attorney) to make financial decisions on your behalf.

Healthcare Decisions:

Enduring Power of Attorney (Medical Treatment): This type of POA specifically deals with medical treatment decisions if you become unable to make those decisions yourself. It comes into effect only if you lose the capacity to make medical decisions.

Real Estate Transactions:

General or Specific Power of Attorney: If you are unable to attend to real estate transactions personally, you can appoint someone to act on your behalf using a power of attorney.

Business Matters:

General Power of Attorney (GPA) or Enduring Power of Attorney (Financial): These can be used for business-related decisions, allowing someone to manage your business affairs when you are unable to do so.
You can provide your attorney with authority to make decisions about where your superannuation would go in the event that you are unable to update your superannuation documents yourself.

Contingency Planning:

Having a power of attorney in place is a proactive step in case unforeseen circumstances, such as illness, injury, or travel, prevent you from managing your affairs.
You can appoint a trusted attorney to make personal and financial decisions for you if you are unable to do this yourself.
Your attorney can also be given power to provide maintenance for your children in the event that you and the other parent of your children are unable to do this due to death, injury or illness.
Without a POA in place your loved ones would have to obtain an order from VCAT.

Peace of Mind:

Knowing that someone you trust is legally authorised to act on your behalf can provide peace of mind, especially in situations where you may be unable to handle your affairs.
Knowing that someone that you trust is authorised to provide maintenance for your children also can provide great peace of mind.

It's important to note that powers of attorney are powerful legal documents, and you should carefully consider who you appoint as your attorney. It's advisable to consult with a legal professional to ensure that the document meets your specific needs and complies with relevant laws and regulations in Victoria.

Additionally, laws regarding powers of attorney can change, so it's a good idea to stay informed about any updates or changes in legislation.

Please contact me if you have any questions.