Why do I need a Power of Attorney to be appointed before travelling overseas?

Doing a grand tour of Europe or going to see the wild animals of Africa can be very exciting. No doubt you are spending your free time researching where you could be going and how long you should spend in each place. Do you know that is it equally important to ensure you have appointed a Power of Attorney before going overseas?

A Power of Attorney can help you with any financial or legal issues that might arise whilst you are overseas.  In New South Wales, the use of a Power of Attorney is governed by the Powers of Attorney Act 2003 (NSW) and the Powers of Attorney Regulation 2016 (NSW). There are two types of Powers of Attorney – General Power of Attorney and an Enduring Power of Attorney.

A General Power of Attorney can be appointed for the specific time you are overseas to allow your nominated attorney to make financial and legal decisions on your behalf. However, if you were to have an accident overseas which left you in a position where you can no longer make decisions for yourself then the appointment is no longer effective. Under a General Power of Attorney, the authority ceases the moment you lose capacity to make your own decisions. Alternatively, an enduring Power of Attorney can allow your attorney to make financial and legal decisions on your behalf even if you lose capacity. Therefore, it is always worth considering making the appointment an enduring power of attorney, even if you only envision your attorney needing to make decisions whilst you are travelling.

What can my attorney do whilst I’m overseas?

1. Continuity of Financial and Legal Affairs

When you are overseas, you may be unable to attend to routine or urgent financial or legal matters such as paying bills, signing documents, managing property or conducting business transactions. A Power of Attorney document enables your attorney to act on your behalf to ensure these matters are not neglected or delayed whilst you are overseas.

2. Property Transactions

If you need to sell or buy real estate whilst you are overseas, your Power of Attorney will be able to manage your property transactions. However, the document will need to be registered with the NSW Land Registry Service as your Power of Attorney before they can manage these transactions.

3. Business Operations

If you are a business owner or director, a Power of Attorney can allow for the continued operation of your business whilst you are away. They may even be able to manage accounts or fulfill regulatory obligations.

4. Unexpected Events

If an unexpected event or emergency arises whilst your overseas, your attorney can act immediately to address financial or legal issues, which may avoid the need for court intervention or the appointment of a financial manager. An appointment of an enduring Power of Attorney can be especially important if you lose capacity to make decisions for yourself because of an accident you may have overseas.

5. Overseas Legal Requirements

In some cases, a Power of Attorney may be required to authorise someone in Australia to act in legal proceedings or transactions in your absence. If you have interests overseas, your attorney may also be required to appoint a representative in a foreign jurisdiction.

Things to be aware of before appointing a Power of Attorney

• Scope and Duration: It is a good idea to specify the powers granted to your attorney, and for how long they are to act as your attorney, particularly if their powers are limited to the period you are overseas.
• Choice of Attorney:  It is important you appoint someone you trust can make financial and legal decisions on your behalf.
• Revocation: You retain the right to revoke your Power of Attorney, whilst you have capacity to do so.
• Jurisdictional Issues: A Power of Attorney made in NSW Australia may not be recognised in the country you are travelling in or in the country which you are asking your attorney to conduct financial and legal decisions in. You will need to consider the requirements in the relevant country.

It is a good idea to ensure you have appointed a Power of Attorney before going overseas, particularly if you are needing them to manage any legal or financial affairs, whilst you are out of the country. The appointment provides flexibility, continuity, legal certainty, and can prevent significant inconvenience or loss arising from absence from the country.

Contact us today to arrange your Power of Attorney before going overseas.

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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