A bullet point guide to Power of Attorney in NSW

1.  What is a power of attorney?

Under the Powers of Attorney Act 2003 (NSW) and Powers of Attorney Regulation 2024 a Power of Attorney (PoA) is a legal document that allows you (the principal) to appoint someone (an attorney) to manage your financial and legal affairs. It is a crucial planning tool, particularly in the event of illness, absence, or loss of decision-making capacity.

2. Types of Power of Attorney and the Differences Between the Two?

General Power of Attorney

• Appointed for a specific period or task (e.g., selling property while overseas).
• Automatically ends if you lose mental capacity.
• Suitable for short-term or one-off situations.

Enduring Power of Attorney

• Used for long-term management of your finances and legal matters.
• Must be made while you still have capacity and accepted by your attorney in writing.
• Recommended for those wanting protection in the event of dementia, stroke, or other serious conditions.
• Continues even if you lose the ability to make decisions.

Note: Neither form allows your attorney to make health or lifestyle decisions only an appointed guardian can do this, and both types automatically end when the principal passes away.

3.  Who can be a power of attorney?

Choosing your attorney is a serious decision. You should appoint someone:

• You trust completely
• Who understands your values and preferences
• That have the time and ability to take on the task
• You should consider discussing your wishes with them and agree to take on the role.

An attorney can be:

• A family member
• A close friend
• A solicitor
• NSW Trustee and Guardian
• A trustee organisation

They must be 18 years old or over and mentally capable. Always ask their consent before appointment.

4. What is the role and responsibilities of a power of attorney?

An attorney must:

• Act in your best interests at all times
• Avoid using your funds for personal gain
• Respect your wishes, culture, and relationships
• Keep your finances separate from theirs
• Maintain accurate records of all transactions
• Follow any restrictions or conditions you specify

An attorney may manage:

• Bank accounts
• Property transactions
• Investments and shares
• Paying bills and debts
• Applying for benefits or dealing with tax matters

5. What are the limitations of a power of attorney?

General Power of Attorney:

• Ceases if you lose mental capacity
• Ideal for specific events or short-term delegations

Enduring Power of Attorney:

• Remains valid even if you lose capacity
• Must be made while you are mentally capable

Limitations include:

• Attorneys cannot make health or lifestyle decisions
• Attorneys must follow any instructions or limits you’ve imposed
• PoA ends when you pass away

Revocation:
You can revoke your Power of Attorney at any time while mentally capable.

• Notify the attorney in writing
• Inform institutions (e.g., banks) that were advised of the PoA

If your attorney is not acting in your best interests, you can seek help from:

• NSW Civil and Administrative Tribunal (NCAT)
• A solicitor
• NSW Trustee & Guardian

6. Why Make a Power of Attorney?

• Ensures your financial affairs are managed if you're absent or unwell
• Provides peace of mind for you and your family
• Avoids legal delays if decisions need to be made urgently

If you'd like help preparing your Power of Attorney, contact us speak with a solicitor from PW Lawyers or contact NSW Trustee & Guardian.

Any information on this website is general in nature and should not be taken as personal legal advice. We recommend that you speak to a lawyer about your personal circumstances.

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