The Importance of a Power of Attorney

The Importance of Having a Power of Attorney

Life can be unpredictable. Illness, injury, or even extended travel can suddenly make it difficult—or impossible—for you to manage your own legal or financial affairs. That’s why having a Power of Attorney (POA) in place is so important.

At Gibson Howlin Lawyers, we help people throughout NSW put the right legal protections in place for themselves and their loved ones. In this article, we’ll explain what a Power of Attorney is, why you need one, and how to appoint someone you trust to act on your behalf when it matters most.

What Is a Power of Attorney?

A Power of Attorney is a legal document that allows you to nominate someone—known as your attorney—to make decisions or act on your behalf in relation to financial and legal matters.

This can include:

Managing your bank accounts.
Paying bills or selling property.
Handling business transactions.
Signing legal documents.

In New South Wales, a Power of Attorney does not cover health or lifestyle decisions—those are handled under an Enduring Guardianship, which we’ll cover in a separate post.

Why Do I Need a Power of Attorney?

Many people believe a POA is only necessary later in life, but the truth is that any adult can benefit from having one in place. Here’s why:

Accidents and Illness Can Happen at Any Age
If you’re suddenly incapacitated—due to illness, injury, or surgery—your financial affairs may need urgent attention. Without a POA, your loved ones may have to go through costly and lengthy legal processes to be able to help you.

Planning Ahead Prevents Conflict
Having a legally appointed attorney avoids confusion and disputes among family members about who can (or should) act on your behalf. The person that you want making decisions for you might not be the person who thinks they should be making decisions for you.

Travel or Living Overseas
If you’re moving or living overseas for work or personal reasons, a POA allows someone in Australia to manage your affairs while you’re away.

Peace of Mind
Knowing someone you trust is legally empowered to step in if needed provides peace of mind—for you and your family.

What’s the Difference Between a General and Enduring Power of Attorney?

In NSW, there are two main types of Power of Attorney:

General Power of Attorney
– Only applies while you have capacity (e.g. if you’re overseas but still mentally able to make decisions).
– Automatically ends if you lose capacity.

Enduring Power of Attorney
– Remains in place even if you lose capacity due to illness or injury.
– This is the most common type used for long-term estate planning.

If you want your attorney to continue acting for you in the event of mental incapacity, you must have an Enduring Power of Attorney in place.

Who Should I Appoint as My Attorney?

You should choose someone you trust completely—often a spouse, adult child, sibling, or close friend. You may also appoint more than one attorney to act:

Jointly (they must act together).
Jointly and Severally (they are appointed together but can act independently).

It’s important that the person you choose is responsible, financially literate, and willing to take on the role. You can also place conditions or limits on their authority if you wish.

What Happens If You Don’t Have a Power of Attorney?

If you lose capacity without a Power of Attorney in place, your loved ones may need to apply to the Guardianship Division of NCAT to be appointed as your financial manager. This can be time-consuming, stressful, and may result in someone you wouldn’t have chosen being put in charge.

Secure Your Future With a Power of Attorney

Whether you’re planning for the future or simply want peace of mind, creating a Power of Attorney is one of the most important steps you can take to protect your financial wellbeing.

Don’t leave it too late. and ensure your affairs are legally protected.

At Gibson Howlin Lawyers, we can guide you through the process of setting up a Power of Attorney with compassion and clarity.

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