Key Takeaways
- A power of attorney allows someone you trust to manage your legal and financial affairs if you cannot do so yourself.
- There are two main types in NSW: general power of attorney and enduring power of attorney.
- An enduring power of attorney continues to operate if you lose decision-making capacity.
- Preparing this document early protects your finances and avoids costly court processes.
- Legal advice ensures the document is valid and tailored to your personal circumstances.
What Is a Power of Attorney?
A power of attorney is a legal document that lets you appoint another person to make financial and legal decisions on your behalf.
This might include:
- Managing bank accounts and paying bills
- Buying or selling property
- Handling investments or business matters
- Signing legal documents
In New South Wales, powers of attorney are governed by specific legislation and formal signing requirements. If the document is not prepared correctly, it may not be valid when it is needed most.
Why Having a Power of Attorney Matters
Many people assume powers of attorney are only for the elderly. In reality, adults of any age can benefit from having one in place.
Unexpected illness, injury or travel can prevent you from managing your own affairs. Without a valid power of attorney:
- Family members may be unable to access accounts or make urgent financial decisions
- Property transactions can be delayed or cancelled
- Loved ones may need to apply to a tribunal or court for authority, which is time-consuming and expensive
Putting a power of attorney in place early provides certainty and peace of mind.
Types of Power of Attorney in NSW
General Power of Attorney
A general power of attorney operates only while you still have decision-making capacity.
It is commonly used when:
- You are overseas and need someone to manage finances
- You want assistance with a specific transaction, such as selling property
- You need short-term financial management support
Once you lose capacity, a general power of attorney automatically ends.
Enduring Power of Attorney
An enduring power of attorney continues even if you lose mental capacity due to illness, injury or age-related conditions.
This makes it a critical part of long-term planning. It allows your chosen attorney to:
- Continue paying expenses and managing assets
- Protect property and investments
- Ensure financial stability without court intervention
Because of its long-lasting authority, strict legal requirements apply when creating an enduring power of attorney.
Choosing the Right Attorney
Selecting the right person is one of the most important decisions in estate planning. Your attorney should be:
- Trustworthy and financially responsible
- Willing to act in your best interests
- Capable of managing complex decisions if required
Many people appoint a spouse, adult child or trusted professional. In some cases, appointing joint attorneys or specifying limits on authority may be appropriate.
When Should You Prepare a Power of Attorney?
The best time to create a power of attorney is before it is needed.
Common life stages when people prepare one include:
- Buying property or building significant assets
- Starting or running a business
- Planning for retirement
- Updating a will or broader estate plan
Preparing documents early ensures you remain in control of who manages your affairs if circumstances change.
Risks of Not Having One
Without a valid enduring power of attorney:
- Financial decisions may be frozen if you lose capacity
- Family members could face legal disputes about control
- Tribunal applications may be required to appoint a financial manager
- Costs and delays can significantly affect your estate
These risks highlight why early legal planning is essential.
How Berryman Partners Can Help
At Berryman Partners, we assist individuals and families across Newcastle, Lake Macquarie and the Hunter region with:
- Preparing legally valid general and enduring powers of attorney
- Advising on the most appropriate structure for your circumstances
- Coordinating powers of attorney with wills and broader estate planning
- Ensuring your wishes are clearly documented and protected
Our goal is to provide clarity, security and confidence for the future.
Contact Berryman Partners today to arrange advice on preparing a power of attorney that safeguards you and your family.
This blog was written by,
Chris Berryman
Chris practises in the areas of Conveyancing and
Business & Commercial Advice
