Financial decisions may include, for example, decisions about how the Principal’s money should be invested. Often, clients only want to grant a power in relation to financial decisions for a fixed period of time (e.g. while they are overseas). In such instances, a general Power of Attorney (POA), rather than an EPOA may be a more appropriate solution. It is very important to note though that POAs do not continue once the Principal has become incapacitated.
It is also worth noting that a Principal may make specific inclusions or limitations to the decision-making powers granted to the Attorney. Examples of such inclusions or limitations may be a restriction from investing in shares or placing the Principal in a specified care facility.
In summary, the powers granted by a POA or EPOA can be extensive, and with these powers comes the potential to misuse the powers they have been entrusted with. It is of great importance that the Principle selects an Attorney that they trust, and have faith that they will do the right thing at the time. If there is a doubt you may wish to consider choosing multiple Attorneys. In these circumstances, you may specify if decisions are to be made by majority vote or unanimous vote (i.e. all attorneys must agree). In any circumstance, when a POA or EPOA document is written, both the Principle and the Attorney/ies should thoroughly understand the powers granted by the document and also the limitations of the document.
Contact us for further legal advice or information on choosing an Enduring Power of Attorney.