Understanding general powers of attorney

Part of the Powers of Attorney topic

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In short

What is a general power of attorney

A general power of attorney is a legal document that allows you (the principal) to appoint someone you trust (an attorney) to make decisions about financial matters.

Financial decisions are choices about your finances or property. Financial decisions can be about:

• paying expenses
• making investments
• selling property (including your home)
• carrying on a business.

You may use a general power of attorney to appoint an attorney for a specific period or event. For example, you may be going overseas and need someone to sell your house or pay your bills.

A general power of attorney is used while you can still make your own decisions and ends if you lose capacity to make those decisions.

A general power of attorney is different to an enduring power of attorney. Unlike a general power of attorney, an enduring power of attorney continues if you lose capacity.  You should make an enduring power of attorney if:

• you want someone to act as your attorney now and to continue to act as your attorney if in the future you lose capacity to make decisions, or
• you want someone to act as your attorney only if in the future you lose capacity to make decisions.

When will it be used

You can decide when your attorney’s power to make decisions begins, including:

• immediately
• from a specific date
• in particular circumstances or occasions.

When does it end

A general power of attorney ends if:

• you end (cancel) your general power of attorney, which you can do at any time, or
• you lose capacity to make financial decisions.