By giving the Power of Attorney, one allows the Attorney or agent (who must be over eighteen years) to make decisions and manage one’s affairs, however, one can limit the Attorney's power by setting out limitations in the Power of Attorney.  

ATTORNEY'S OBLIGATIONS

The Attorney must always exercise the powers honestly, and with reasonable diligence to protect the Donor’s interests.

The Attorney must not enter a transaction for the Donor, which involves a conflict between his interests and the Donor’s, unless the Donor clearly allows the transaction in this Power of Attorney. For example, if it is necessary to sell some of the Donor’s property, it is a breach of the Attorney’s obligation to sell it to his own relative.

The Attorney must keep the Donor’s money and property separate from his money and property, unless they are joint owners, or operate joint bank accounts.

The Attorney must keep proper accounts and records, showing how he handles the Donor’s money and property. Legal authorities and anyone interested in the Donor’s welfare can require the Attorney to produce documents and records.

The Attorney must compensate the Donor for any loss if he does not carry out his duties properly.

NEED MORE INFORMATION

Behan Legal assists and advises on these important issues. For an appointment, call 03 9646 0344.