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In line with this firm's policy of continually monitoring the law and updating our advice to our clients, we strongly recommend to all our clients that they should seriously consider granting to their spouse or some other person they trust, a Power of Attorney. See on the reverse hereof situations where a Power of Attorney would be of assistance.

A Power of Attorney gives the attorney the authority to buy and sell real estate, shares and other assets for the principal; to operate the principal's bank accounts; to spend the principal's money on behalf of the principal and to exercise many other powers. A Power of Attorney cannot be used for health or lifestyle decisions and the attorney must always act in the best interests of the principal. If the attorney is signing documents that affect real estate, the Power of Attorney must be registered at Land and Property Information New South Wales.

As your Attorney can act on your behalf and dispose of your property, this should only be granted to a person whom you trust completely.

It is possible to grant a Power of Attorney which operates even though you may be mentally incapacitated.

Powers of Attorney can be revoked at any time. Death also revokes your Power of Attorney. From the date of your death your Executor then has power to act.

Powers of Attorney Act 2003 made significant changes to Powers of Attorney. In particular it allowed for Powers of Attorneys to include clauses to be used for the benefit of third parties. This is useful for situations where assets for taxation reasons (such as negative gear property) or historical reasons (superannuation) are in one particular person's name but these are effectively joint matrimonial assets and are to be used for the benefit of persons other than the particular named asset holder. Under the amendments the other persons to be benefited are specifically named within the Power of Attorney and the attorney is then at liberty to use the assets not only for the benefit of the principal but also for the named third party.

The changes made within the Power of Attorney Act also means that it is within the best interests of persons who already have Powers of Attorney to possibly consider updating their Power of Attorney to take into account these recent amendments. These changes have been designed by the Government to make the Powers of Attorney more user friendly and of more utility to the general population. The costs of obtaining a Power of Attorney are relatively inexpensive.

We suggest that the Power of Attorney be left with us for safe keeping in our Strong Room, to be used by your Attorney if the need arises. We urge you to think carefully about a Power of Attorney.

• A person is mentally disabled and needs to be taken to a Sydney Hospital for a period of time. Their spouse decides that it would be in the best interests for both of them to move to Sydney and to lease their house. With a Power of Attorney this can be done.
• A person is rendered mentally disabled and without their income their spouse can no longer manage to pay the family debts. However, by selling some of the family assets and possibly purchasing a more modest home and/or car, the spouse can continue to survive until such time as that person has recovered. With a Power of Attorney the spouse can do this, but without one the spouse could find the debts mounting up, with the end result that all the assets for which the person has worked are sold by their Creditors.
• If a person is in business and is rendered mentally disabled, in the absence of a Power of Attorney the spouse cannot legally deal with matters relating to the business. It may be necessary for the business to cease operation or be sold. With a Power of Attorney, the spouse can continue to operate the business on a person's behalf until such time as the business is sold or ceases operation.
• A person is struck down by Alzheimer's Disease or otherwise rendered mentally disabled. The house is only in their name and there is no other person occupying the property. The person is taken to hospital and is expected to have a lengthy stay. No family members can legally occupy the house, nor can they rent it out. Standard insurance policies are void if the house is vacated for a period in excess of two months. With a Power of Attorney the family members can lease the house and then use the money to make the person's stay in hospital more comfortable.
• A husband retires with significant superannuation monies held in his name only to avoid payment of excessive amounts of taxation, and subsequently loses capacity to conduct his financial affairs. With a Power of Attorney the spouse can access those funds to be then used not only for the husband's benefit, but also for the wife and children named within the Power of Attorney.