I’ve Got the Power? Why Powers of Attorney Are Important

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Many people when they begin preparing their estate planning documents forget about or do not consider having Powers of Attorney. Appointing a Power of Attorney is extremely important as you are choosing someone to make decisions regarding your personal or financial matters when you do not have the capacity to do so yourself.

A Power of Attorney safeguards your interests for the future but also ensures that your affairs can be taken care of at any point in time when you are unable to make decisions. Powers of Attorney can be either general or enduring. Appointing a Power of Attorney seems daunting and can sound like a lot of control given to someone else, but the person you choose must ensure they are making decisions that are in your best interests only.

General Power

A general power allows the person appointed to make decisions on your financial or personal matters or both. This power is extremely flexible and can be altered to suit any circumstance or event in your life. This power is frequently used for people to appoint someone they trust to make financial decisions on their behalf during a specific event, for example appointing someone to purchase a house on your behalf whilst overseas or having access to your bank account to pay your bills when you are not in a position to do so.

The general power is adaptable and creates the ability for you to specify what aspects of your life that you want someone to make decisions for. It can also be limited to a timeframe of your choice, which is why it is important to understand and know when to appoint someone.  

Enduring Power

An enduring power is continuous and operates when you are unable to make decisions regarding your personal or financial matters. This type of power is extremely important when considering your future.

When preparing your estate planning documents, appointing an enduring power of attorney is crucial as it creates the ability for a person to make decisions without any delay and to safeguard your interests when you cannot do so.

We never know what the future may hold, and we must ensure that we plan for our future and protect ourselves. Without a valid enduring power of attorney in place, if you are incapacitated and cannot make decisions then it will be extremely difficult for your family or friends to make those decisions without going through a lengthy legal process.

If you are considering drafting your estate planning documents, you should always think about your Powers of Attorney. Powers of Attorney are malleable and can be altered to suit any circumstance you choose. If you are unsure who to appoint or need any assistance with drafting your Powers of Attorney, we recommend that you contact our team at Scanlan Carroll Lawyers to assist you.