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.