Having somebody take care of your business dealings can be real nice. Just think about it. You don’t have to go to your business meeting in say Uganda to sign documents. You can just send a representative with the power of attorney and that person can sign the contract for you. But for all its benefits, the power of attorney can also be a bane when not done the right way and when put into the wrong hands.

What is a power of attorney?

Before we can discuss the advantages and disadvantages of using a power of attorney, you must first understand that exactly is the concept. Power of attorney is a document that gives people the authority to act on another person’s behalf for a specific period and matter depending on what is stated on the paper. This means that another person can sign documents for you and make decisions on your behalf. The person who gives the power of attorney is often called the principal while the grantee is called the proxy or sometimes the agent.

Use of the Power of Attorney

Power of attorney is used within corporations where executives have tightly packed schedules that require them to travel in three different countries in a span of three days. This can either be physically impossible or at best, physically tiring. Thus, the power of attorney serves to lift the burden from the executives, allowing them to become more productive. Company lawyers are often sent or subordinates who are trusted to make decisions and sign the contract.

Another advantage of a power of attorney is its importance in making healthcare decisions. A power of attorney can also be given to people, authorizing them to refuse or allow medical care to the principal if they become incapable of making decisions for themselves. This also includes making the decision to pull the plug in cases when only a machine is keeping the principal alive.

Some people are also given the power of attorney to take care of a principal’s financial portfolio. Although this is well and good especially when you are so busy and want to put the business of investing your money to a professional. But money can turn people dishonest. And here lies the one disadvantage of a power of attorney— putting your trust into one person.

On the downside

Remember that in giving a power of attorney to someone, you are basically telling people who read the document or the contract that you are giving the agent full rights to sign for you and agree or refuse something on your behalf. If the agent turns out to be corrupt, then any transactions that he or she handles is at risk for fraud. This is why although this is a very convenient thing to do; only a few ever use it. Giving that kind of power to one person can be very risky even if you plan to monitor all the transactions made under your name.

Article courtesy of The Age.

A financial enduring power of attorney is a legal document. By signing it, you authorise a person to make financial and legal decisions for you.

The main difference between this and the general power of attorney is that a financial enduring power of attorney is valid even if you become mentally incompetent.

This type of power of attorney is especially useful when you are planning for the future. For example, if you are unconscious in hospital as a result of a car accident, the person you have appointed under an enduring financial power of attorney can make financial decisions for you even though you are unconscious.

What can my attorney do?

Your attorney can make any legal and financial decision that you can make. So if you only want to appoint an attorney for a short time, perhaps you should use the general power of attorney, rather than a financial enduring power of attorney.

Multiple attorneys

Where it is permitted under State/Territory law, if you do this you may be able to decide whether you want your attorneys to make decisions ‘jointly’ or ‘jointly and severally’. ‘Jointly’ means that both attorneys have to agree with the decision they make. ‘Jointly and severally’ means that either attorney can make a decision by themselves.

There are no set rules to say what is the best choice, it depends on your circumstances. For example:

* appointing attorneys to make decisions jointly and severally could be useful if one of your attorneys travels a lot; or
* if you want two people to make decisions for you, and you don’t fully trust the judgment of one of them, then you can appoint them to make decisions jointly.

How long does it last?

This type of power of attorney will last until:

* you cancel it (you must be mentally competent to do this);
* you die;
* you become bankrupt; or
* it is canceled by an appropriate Court/Tribunal.

How do I cancel it?

You can cancel an enduring power of attorney at any time, as long as you are mentally competent. Check whether there are formal requirements in your State/Territory, particularly if there are registration requirements. And don’t forget to tell your banks or other agencies that have dealt with the attorney.

Most complaints to the Adult Guardian are about financial abuse by attorneys under an enduring power of attorney. The Adult Guardian may also investigate allegations of inappropriate personal decision making by attorneys, such as denying contact with other family members.

If there are reasonable grounds to believe that the attorney is not acting competently (for example, neglecting their duties or there is abuse or risk that requires immediate intervention) the Adult Guardian can suspend the attorney for financial or personal matters for up to three months.

The Adult Guardian can also apply to the Guardianship and Administration Tribunal on the adult’s behalf for the appointment of:

• an administrator (for financial matters) or
• a guardian (for personal matters and health care).

What if there is no attorney?

In most cases, anyone with an interest can apply to the tribunal for appointment of an administrator or guardian where there is evidence of:

• inappropriate decision-making
• abuse
• neglect
• exploitation of an adult who does not have an attorney.

If there is insufficient evidence of abuse, but strong grounds for concern about inappropriate decision making, the Adult Guardian may conduct an investigation.

Concerns about physical and sexual abuse

Complaints about an adult with impaired capacity being physically or sexually assaulted should be made directly to police as soon as possible.

The Adult Guardian may accept a referral about this type of abuse if it is alleged the adult remains at risk of abuse or exploitation while police investigate.

The Adult Guardian’s investigation would aim to determine what protection measures might be required and consider matters such as:

• the appropriateness of a guardianship order
• the need to apply for a warrant to remove the adult from their place of residence
• whether a domestic violence order or other action is needed to prevent the abuse.

This investigation would not duplicate the police investigation. It would not seek to identify whether a crime had been committed or prove who was responsible.

This article proudly recognised by the Qld State Government.