The General Power of Attorney and Enduring Power of Attorney which used to share a single form are now in separate forms.
An Enduring Power of Attorney is required to be in the new form if executed on or after 1 March 2014 in order to be accepted by the Land and Property Information (LPI) for registration. Your Attorney will only have the authority to buy or sell real properties on your behalf if the Power of Attorney is lodged or registered at the LPI.
General Power of Attorney
A General Power of Attorney is useful for a short term appointment where the Principal does not require the Attorney to continue to act in the event the Principal loses his or her mental capacity.
For example, persons going overseas may wish their Attorney to look after legal and financial affairs (eg SMSF) whilst away. A General Power of Attorney may be suitable for this purpose. Also General Powers of Attorney are used for a single or specific type of transaction.
The Attorney’s legal power to act under a General Power of Attorney will cease in the event the Principal loses mental capacity.
All forms of General Powers of Attorney, whether executed before or after 1 March 2014, will continue to be accepted for lodgement at the LPI.
Enduring Power of Attorney
Unlike a General Power of Attorney, an Enduring Power of Attorney continues to operate after the Principal has lost mental capacity.
This form of attorney encompasses unforeseen circumstances such as an accident or medical misfortune which causes the Principal to lose capacity to look after his or her own affairs.
Until 1 March 2014, all Enduring Powers of Attorney executed on or before 28 February 2014 can be accepted by the LPI for lodgement regardless of which form on which they are created.
From 1 March 2014, LPI will only accept Enduring Powers of Attorney in the new prescribed form if they are executed on or after 1 March 2014.
Have you and your loved ones made a Power of Attorney yet?
Contact our office to discuss tailoring a Power of Attorney to suit your requirements