The Christmas season is one to kick back, relax and take a well-earned break. If you are one of the many Australians seizing this opportunity to travel or take a holiday, there are two things you must have before you jet set off- an up to date Will and an Enduring Power of Attorney.

By now, most people realise the importance of a Will (Ed. – Yet alas, they fail to do anything about it!), many people fail to consider what will happen to their assets if their ability to make decisions is compromised. It is commonly thought that when a loved one or business partner loses their decision making faculties, families can simply step in and take control of their assets and make financial decisions on their behalf. However, this is not legally case.

What is a Power of Attorney?

Powers of Attorney are used to appoint a trusted individual to make these important financial decisions when you cannot. There are a number of forms of these legal documents which can be used depending on the circumstances that arise. A General Power of Attorney is used to appoint someone to make decisions on your behalf for a specified time period- for example if you travel overseas and cannot manage your financial affairs. However if you lose your capacity to make decisions permanently, this appointment will become invalid.

An Enduring Power of Attorney continues to apply even where you can no longer make financial decisions for yourself. As the name suggests, an Enduring Power of Attorney will persist even when you are legally incapable of making financial decisions. Creating an Enduring Power of Attorney is equally as important as drafting a will.

Be sure to note that an Enduring Power of Attorney does not permit an individual to make lifestyle, personal or treatment decisions on your behalf. In order to appoint someone to do this, you need an Enduring Power of Guardianship.

What are the benefits?

By creating an enduring power of attorney, you can appoint someone you trust to manage your financial affairs either when you lose capacity or immediately. This will enable you to choose someone who is reliable and financially astute. A power of attorney also minimises financial hardships that may arise if you can no longer make reasoned decisions or attend vital meetings and institutions due to physical disability. These simple documents will ensure that your financial assets are managed with as much continuity as possible.

You can also choose to impose limits on what activities and decisions your appointed attorney can carry out on your behalf. It is possible to outline how you would like your estate be managed which adds to the control you have over your financial affairs. Your appointed attorney can also maintain confidentiality in respect of your investments, property and other financial matters.

So how do these documents work?

If you choose to appoint an attorney immediately, there will be no need to apply to ta state court or tribunal for a declaration of legal incapacity. Attorneys that are only appointed when you are not legally capable of making decisions will need an order from a court or tribunal declaring your incapacity. Platinum members read on to find out additional precautions that may need to be taken.

An Enduring Power of Attorney is a necessary document for anyone who wishes to ensure their financial affairs are in order before kicking back for the holidays.  By creating an Enduring Power of Attorney you avoid an administrator being appointed against your wishes. More importantly, you can have a say in who you would like to manage your estate and how. Click here to get started and Build an Enduring Power of Attorney online.