A guide for Power of Attorney
A guide for Power of Attorney
It is defined as a legal document made by one person, who is called the ‘principal’ that allows another person to do things with their money on their behalf. This includes bank accounts, shares, real estate and other assets. In some cases, the document may also allow for decisions on health requirements.
We accept a Power of Attorney document when the principal is a member of Illawarra Credit Union and all conditions have been met to invoke the Power of Attorney.
Illawarra Credit Union will apply the signing authority as presented in the Power of Attorney document and work with the attorneys to be able to access accounts in accordance with the authority.
These are the 2 most common types of Power of Attorney
This gives power to an attorney/s to act on the principal’s behalf. A General Power of Attorney can only operate whilst the principal has decision making capacity. It ceases if the principal loses capacity or, passes away.
Responsibilities
Being appointed Power of Attorney carries considerable responsibilities.
These responsibilities can be summed up as ensuring that any transactions you initiate are:
- In accordance with the limitations of the authority
- In the best interests of the principal you are representing
Other responsibilities include (but are not limited to):
- Assisting the principal while making financial transaction decisions
- Where possible, make the same decisions the principal would have made
- Make sure the autonomy and desires of the principal are honoured
- Completing transactions on the principal’s behalf by using the principal’s account
- The attorney must keep their money and property separate from the principal’s
- Keep detailed records and receipts for all transactions conducted on behalf of the principal
- Ensure the principal (and if involved, any other attorneys) are kept informed of transactions you initiate
- Attorney/s must only operate as authorised in accordance with the Power of Attorney
Download our Power of Attorney Guide here.
FAQs
No. An attorney cannot make any gift of a principal’s money or property unless the Power of Attorney form specifically allows the attorney to do so.
Power of Attorney authorities contain an optional clause for the principal to authorise an attorney to give reasonable gifts. If the box is ticked, the attorney will be able to use the principal’s money to make certain types of allowable gifts.
These can include gifts to a relative or close friend of the principal of a seasonal nature (for example, birthday, Christmas or other religious occasion) or because of a special event (for example, birth or marriage). The value of the gift must be reasonable and consistent with the principal’s financial circumstances.
No. An attorney cannot use a principal’s money for their own profit, benefit, or the profit or benefit of any other person unless the Power of Attorney form specifically allows the attorney to do so.
Some of these changes include (but are not limited to):
- An order is made by a court or tribunal appointing an administrator to act on the principal’s behalf
- The principal revokes their Power of Attorney
- The principal loses capacity to make financial decisions
- The principal passes away
Note: As well as Power of Attorney, any Guardianships and/or authorities to operate on an account lodged at Illawarra Credit Union immediately cease upon the principal passing away
For more information on Power of Attorney
Please refer to: Power of Attorney in Australia – Compass or, the appropriate information source relevant to your State or Territory.
Illawarra Credit Union obligations
Our primary obligation is to our customer. The principal you are acting on behalf of.
Given this obligation, where it is not apparent to our staff that a Power of Attorney initiated transaction is in the principal’s best interest, we may:
- Ask you additional questions in regard to the purpose of the transaction
- Contact the principal to confirm their approval of the transaction
- Delay the transaction where our staff need to seek further advice
- Decline the transaction where it remains unclear that it is in the principal’s best interest
