What is the difference between a Will and a Power of attorney?
For the sake of clarity, a Will comes into effect after you have passed away and has no real effect whilst you are still alive. A Power of Attorney, on the other hand, is the opposite to this. That is, a Power of Attorney ONLY can be utilised whilst you are still alive and ceases to have any effect after you have passed away.
What is a Power of attorney?
A Power of Attorney is a document in which the donor gives power to one or more people to act on his or her behalf in certain situations. Power of Attorney usually applies to either financial or medical decisions.
It is critical to remember that when utilising the Power of attorney document, the attorney MUST only act in the interests of the person giving the power.
They can also specify under what circumstances the powers come into effect.
A specific circumstance as to when a Power of Attorney may be utilised is upon losing mental capacity or if the donor is outside of the country are usual examples, but can vary.
What types of Powers of attorney currently exist in Victoria?
The primary ones most people require are:
- Enduring Financial Power of Attorney
- Enduring Power of Attorney (Medical Treatment)
(Now called “Appointment of medical treatment decision maker”)
Note: There are also other types of Power of attorney, such as a General Power of Attorney or a Company Power of Attorney. These are usually very specific; Ask us if you require either of these.
Enduring Financial Power of Attorney
This type of Power of Attorney allows the attorney(s) to do what the person giving the power can do, limited to specific tasks and circumstances as specified within the actual Power of Attorney document. As the name suggests, these decisions are limited to tasks of a financial nature.
Examples of these tasks may include such tasks as Selling property, withdrawing money from a bank or paying a gas bill.
A Financial Power of Attorney also specifies if the tasks are to include matters of a personal nature, such as where you live or who you see.
Appointment of medical treatment decision maker. (Medical Power of Attorney)
This type of Power of Attorney is limited to matters relating to the refusal of medical treatment.
A common example where this may be utilised is in the deadful situation where an attorney is to make the decision to turn off life-supporting machines.
Travel Appointments
In some situations, the donor is too sick or frail to attend our offices in order to sign a Power of Attorney. We can arrange to travel to the donor’s home or hospital for a fee. Please contact us to discuss this further if required. A common thread in these situations is the issue of capacity. Please refer to the section below.
Capacity
The courts and the legal industry as a whole treat the issue of capacity with the utmost seriousness. This is both a legal and moral issue for most lawyers. We at Cimino & Cimino do not deviate from this stance. Though it may appear that a lawyer is engaging in idle chit-chat with a client, they are also evaluating the capacity of a Power of Attorney client. If our lawyers feel that the donor does not have adequate capacity to make a power of attorney, we will abandon the appointment. In addition, where capacity may be borderline, we may ask for a letter of evidence from a general medical practitioner. Please call us for a free initial consultation to discuss this further if you are unsure.
The Cost of Hiring Business Purchase Solicitors
Cimino & Cimino charge fixed fees in relation to Powers of attorney. Some law firms charge hourly rates for their services. Cimino & Cimino believes in providing transparent and competitive pricing for our legal services. Regardless of the fee arrangement you choose, our solicitors will work closely with you to understand your budget and provide high-quality legal services that deliver value for your investment.
Book an Appointment with one of our Lawyers to discuss Powers of Attorney
If you’re considering a power of Attorney and need legal guidance, Cimino & Cimino is here to help. Our team of experienced lawyers are ready to assist you. To book an appointment with our lawyers, you can contact us to speak with one of our friendly staff members and schedule your consultation over the phone.
During your initial consultation, our lawyers will take the time to understand your needs and goals, assess the legal issues involved in your transaction, and provide guidance on the best course of action. We’ll also discuss our fees and billing practices in detail so you can make an informed decision about whether to proceed with our services.
