Power of Attorney

A Power of Attorney is a document by which you (the principal) authorise another person (your attorney) to act for you in financial and legal matters such as paying bills, operating bank accounts or selling property. Unlike a Will, which only operates after death, a Power of Attorney works while you are alive. An ordinary Power of Attorney ends if you lose mental capacity — only an Enduring Power of Attorney survives incapacity.

Powers of Attorney are used for convenience (e.g. while travelling) or to plan for incapacity, and the appointment must be in the form prescribed by your state or territory. Example: Before moving into aged care, Margaret signed a Power of Attorney appointing her daughter to manage her bank accounts and sell her house. Each state has its own forms and witnessing rules, so a document valid in one state may need to be re-made or recognised in another.