General Powers of Attorney
Published: September 2009
Powers of Attorney have been in existence for many decades. Although there are many varieties of Powers of Attorney that can be granted by individuals and by corporations, the Powers of Attorney which have received statutory recognition in Victoria are:
- General Powers of Attorney
- Enduring Financial Powers of Attorney
- Enduring Medical Treatment Powers of Attorney
- Enduring Powers of Guardianship.
In a group of legal articles dedicated to Powers of Attorney over a number of months we will consider the desirability of the various Powers of Attorney. The article for this month focuses on General Powers of Attorney.
A General Power of Attorney enables a person (the “Donor”) to appoint another person (the “Attorney”) to act for the Donor and to do on the Donor’s behalf all things that the Donor might legally do himself. At first instance this appears to be as simple and comprehensive as would be necessary for most individuals. Indeed, in many situations a General Power of Attorney may be all that a client requires.
Despite the benefits of a General Power of Attorney, it has become more and more apparent to legal practitioners that a General Power of Attorney is often less than satisfactory in certain circumstances. The main reason is that a General Power of Attorney does not continue to operate when the Donor is incapacitated or is absent and their whereabouts cannot be adequately established. Incapacity and absence give rise to an argument that the General Power of Attorney cannot be relied on because it is not possible to establish whether the Donor would have wanted it to continue to operate in such circumstances. Accordingly, many institutions, banks and other bodies will not accept General Powers of Attorney and the Attorney encounters resistance which compromises the usefulness of such a document.
Although a General Power of Attorney is certainly a useful tool the potential complications mentioned above show the importance of obtaining reliable legal advice - having regard to your own personal situation – as to the appropriateness of the document for your individual requirements. In a number of circumstances a General Power of Attorney may be all that is required. However it may be necessary in other circumstances to put in place other Powers of Attorney, including Enduring Financial Powers of Attorney, Enduring Medical Treatment Powers of Attorney and Enduring Powers of Guardianship. These other Powers of Attorney will be considered in separate articles.
Disclaimer
The facts and circumstances of every case are different. The above article is not intended as, nor should it be construed as, legal advice as to the subject matter of the article. Should you have legal issues that are similar to above then you should not place any reliance on the content of this article but, instead, you should seek legal advice.
Related Practice Areas: Wills & Power of Attorney
