Protect your future with the right legal document. Enduring Power of Attorney vs Power of Attorney
The main difference is that an Enduring Power of Attorney remains effective even after the donor loses mental capacity, while an ordinary Power of Attorney ends at that point.
When it comes to legal documents that grant authority to another person to act on your behalf, the Power of Attorney is often confused with the Enduring Power of Attorney. However, it's important to note that these are two different legal documents.
An Enduring Power of Attorney (EPA) and an ordinary Power of Attorney (POA) are two distinct legal documents that enable a donor to grant specific powers to an attorney for certain circumstances. The main difference is that an EPA remains effective even after the donor loses mental capacity, while an ordinary Power of Attorney ends at that point. An ordinary Power of Attorney is typically used for short-term or specific purposes, while an EPA is used for long-term purposes, such as appointing an agent to make decisions related to property, personal care, and welfare in the event of the donor's loss of mental capacity.
Power of Attorney A Power of Attorney is a document that permits someone else to carry out certain tasks on your behalf, such as signing documents while you are overseas or incapacitated. It is important to remember that a Power of Attorney is only valid as long as the donor has mental capacity. For instance, directors of companies can benefit greatly from a Power of Attorney, as it allows another person to sign on behalf of the director while they are abroad. Sole traders can also find Power of Attorney documents helpful for the same reason.
Enduring Power of attorney EPA is a legal document that enables an individual to appoint someone else as their attorney to manage their property, welfare, or both, in the event that they become mentally incapacitated. Without an EPA in place, the individual's family or next of kin may have to undergo a time-consuming and expensive process of applying to the Family Court to be able to take care of them and handle their property.
An EPA is not just for elderly people; in fact, it is recommended that all adults create an EPA. This is because unexpected accidents or illnesses can occur at any age, and an EPA can help ensure that an individual's affairs are managed according to their preferences if they become incapacitated. As a result, anyone over the age of 18 should consider creating an EPA to protect their interests in case of incapacity.
When it comes to Enduring Powers of Attorney, there are two distinct types: Enduring Power of Attorney in relation to Property and Enduring Power of Attorney in relation to Personal Care and Welfare.
Enduring power of attorney in relation to Property
An Enduring Power of Attorney in relation to Property enables a donor to appoint a suitable attorney who has the authority to manage the donor's property affairs, such as managing bank accounts, selling houses, and handling investments on the donor's behalf. This type of power of attorney can come into effect immediately or only when the donor loses their mental capacity.
Having an Enduring Power of Attorney in relation to Property come into effect immediately can be advantageous in situations where there is uncertainty about the donor's mental capacity, particularly if it changes frequently.
Enduring power of attorney in relation to Personal Care and Welfare Enduring Power of Attorney in relation to Personal Care and Welfare can only come into effect when the donor loses their mental capacity. Before this type of power of attorney can take effect, a medical practitioner must evaluate the donor's mental capacity. An Enduring Power of Attorney in relation to Personal Care and Welfare allows an attorney to make decisions on behalf of the donor regarding their health and well-being, such as whether the donor needs to be placed in full-time care.
The Enduring Power of Attorney in relation to Personal Care and Welfare, as well as the Enduring Power of Attorney in relation to Property, provides customizable options within their respective documents. It is advisable to seek legal advice to better understand the impact and significance of each option, and to determine the most suitable options for your individual circumstances. Our firm is readily available to assist you with any inquiries or concerns you may have.