Have you thought of who will manage your financial affairs when you are unable to do so?

​A Power of Attorney is a document in which you can appoint a person to manage your assets and financial affairs when you are alive. For example, if you travel a lot, you may find it convenient to appoint someone capable and trustworthy as your Attorney to manage your finances, pay bills and even sign documents on your behalf. If you are ill and find it inconvenient to manage your affairs, it is also useful to appoint someone to do so. 

It is important to make a Power of Attorney for anyone above 18 years of age with sufficient mental capacity to understand its effect. This means it is especially essential if you are older and have a higher chance of losing your mental capacity sooner and then you can no longer make a Power of Attorney. 

Although your family can apply to the government to gain authority to manage your financial affairs, that is out of your control. Making an Enduring Power of Attorney allows you to determine who has authority and the kind of authority they have when you lose mental capacity.

You can choose to make a General Power of Attorney or Enduring Power of Attorney. The Enduring one continues to have effect after you have lost mental capacity. The General one gets automatically revoked.

You will not lose control of your financial affairs with a Power of Attorney as it only gives your Attorney authority to manage your affairs with your instructions. You can also revoke the Power of Attorney any time when you still have the mental capacity to do so.

You may also wish to make an Enduring Guardian which appoints someone to make decisions about your lifestyle, medical treatment or welfare which cannot be covered by the Attorney.

A Power of Attorney will also not affect your Will as it ceases to have effect when you die and your Will takes effect.
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