Your Will only operates upon death. A Power of Attorney authorises another person or persons (your spouse, trusted family member or friend or professional adviser) to manage your assets in the event of an unforeseen accident or severe incapacity. This helps to ensure your safe future. In fact, without a Power of Attorney, you may incur substantial future expense.
In the event you are out of the country for extended periods of time, you can authorise someone (known as your 'attorney') to manage specific transactions and your finances, saving time and inconvenience.
At Kells we advise our clients to always have an enduring Power of Attorney.
Jean's husband Bob is severely incapacitated and is cared for in an aged care facility. Bob receives an unexpected inheritance which requires him to sign detailed legal documents. Jean has to apply to the Court to grant her guardianship over Bob's financial affairs to enable her to sign documents on Bob's behalf. This is an expensive and time-consuming process which could have been avoided if Bob had appointed Jean his Attorney when he still had capacity.
An enduring Power of Attorney is essential in the event of severe incapacity:
With no Power of Attorney your assets may need to be managed by a New South Wales State Government office such as the Protective Commissioner or by recourse to the Courts. The cost of government administration is significant.
Kells can advise you who to appoint and how to secure that appointment.
Remember - the unforeseen can happen! it is too late one you lose capacity. Every adult should have a valid Power of Attorney.
For the right professional advice, contact our Wills & Estates team for a consultation.