New Power of Attorney Forms

As from 1 March 2013 there will be two forms for a Power of Attorney whereas previously there was only one. The first form will be for a General Power of Attorney and the second for an Enduring Power of Attorney. The differences between the two types are as follows:

General Power of Attorney

This can be useful for a short term appointment where you are going overseas for a while and wish to appoint an attorney to look after your legal and financial affairs or you want the attorney to act in relation to a one-off transaction such as the sale or purchase of a property.

It is not necessary for the attorney to sign the document but it automatically terminates if you lose mental capacity.

Enduring Power of Attorney

This continues to operate after you as principal have lost your mental capacity. It enables someone to look after your legal and financial affairs even if you become unable to do so.

However, the attorney must sign the form to show that they consent to act and it will not operate until the attorney has signed.

Also, your signature as principal has to be witnessed by a prescribed witness, such as a lawyer, who then must sign a certificate stating that they explained the enduring Power of Attorney to you and that you appeared to understand it.

Either Power of Attorney must be registered at Land & Property Information if your attorney is going to deal with real estate.

February 2014