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A Power of Attorney, sometimes called a POA, is a document that individuals use to allow another person to make decisions on their behalf regarding their finances, business, and personal matters. In certain jurisdictions (e.g. Australian Capital Territory and Queensland), a Power of Attorney will give someone the authority to make decisions regarding a person's health care as well.
Depending on your situation, you have the option to create a general or enduring Power of Attorney and add specific directions, limit certain decisions, or set conditions that need to be met before an action can be made.
LawDepot's Power of Attorney template can be customised for:
A Power of Attorney generally involves two parties: the principal and the attorney.
The principal is the individual who created the Power of Attorney and who is allowing another individual to make decisions on their behalf. In some instances, this person will be called the donor.
The attorney is the individual who was appointed by the principal to make decisions for them. This person can be any trusted individual (e.g. a family member, friend, accountant, lawyer, etc.) so long as they are:
As well, an attorney shouldn't be someone who has not been discharged from bankruptcy (meaning they have not yet been released from their legal obligation to repay their debts).
A lawyer may also be involved to review the POA form for legal reasons or to act as the principal's attorney, if the principal chooses them to act on their behalf.
Both a general and enduring Power of Attorney allow you (as a principal) to appoint another person (your attorney) to act on your behalf. However, there are differences between when a general POA or an enduring POA can be used and what causes them to end. The following section sets out the definitions and clarifies the differences of each:
You may also see limited Power of Attorney. A limited POA is not its own type of POA form; it is used to indicate that the attorney has the power to act on some decisions as opposed to all. In most jurisdictions, signing a POA (general or enduring) will give an attorney the ability to act on your behalf regarding finances, business, health care, and/or personal matters without restriction. To restrict your attorney's decision-making authority, you must set limits in your POA.
A Power of Attorney form will allow an attorney to perform actions or make decisions regarding your:
To be valid, a Power of Attorney must be signed by the principal while they are still mentally competent and capable of making their own decisions. Under select circumstances, it is acceptable for another person to physically sign the document for the principal (e.g. if they have a physical limitation preventing them from signing themselves) so long as the principal is mentally competent at the time it is signed.
Another person (who is called a witness) must be present when the POA is signed and include their contact information on the form. A proper witness is:
Keep in mind, in certain jurisdictions, such as Queensland, witness requirements are stricter and only a Justice of the Peace, Commissioner of Declarations, Notary Public, or lawyer can witness an enduring Power of Attorney for it to be considered a valid document.
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