Powers of Attorney
Whilst an attorney may still be appointed at common law (See Sn 7), powers of attorney are commonly given under the Powers of Attorney Act 2003 (NSW).
Under that act:
- Subject to the limitations in the act, attorneys are able to deal with property and assets, and enter into financial transactions and agreements on behalf of the person who appointed them.
- Conditions or limitations can be placed on the attorney's power by specifying those conditions or limitations in the power of attorney document.
- Powers can be extended (as well as restricted) by specifically stating so in the power of attorney document.
- Unless the power of attorney document establishes that the power is an enduring power of attorney, the authority of an attorney is limited to acts that are within the appointor's capacity to understand at the time the act is done. In other words, the attorney is, at law, an identical copy of the person who appointed them at all times, and accordingly subject to any limitations in capacity that the person who appointed them suffers at any particular time.
- If the power of attorney document establishes that the power is an enduring power of attorney, the power of attorney continues to operate even when the person who appointed the attorney does not have the ability to understand what the attorney is doing. In other words, the attorney is, at law, a complete substitute for the person who appointed them at all times, and accordingly is only subject to any limitations in capacity that they suffer at any particular time.
For more information on powers of attorney see the Powers of Attorney Act 2003 (NSW) or download the documents Enduring Power of Attorney Information Sheet and Powers of Attorney Act Summary