ENDURING POWER OF ATTORNEY AND INHERITANCE IMPATIENCE

In these days when many of us live very long lives (and are sometimes more affluent than our children) it is not uncommon for children to become impatient to get at least some of the money they believe will eventually be theirs before (rather than after) we die.

Given this view (and sometimes with the encouragement of a partner) the most loving of children, granted their parent’s power of attorney, may come to view this power as a means of getting some of that inheritance early. In fact, Rosalind Croucher of the Australian Law Reform Commission stated that "people describe powers of attorney as a licence to steal”. Financial abuse is the most common form of elder abuse in Australia, and much of it is facilitated by the misuse of enduring powers of attorney.

By the time financial abuse is identified  attorneys with inheritance impatience who have misused their powers have often left few assets to recover for other beneficiaries.

The creation of an Enduring Power of Attorney is very serious business. It is essential that the donor (usually a parent) of the power understands what they can do to place limits and conditions on how the attorney (usually a relative) who holds the power can act. An example of one possible condition is that the attorney provides the rest of the family an annual account of all financial and legal decisions they have made. A solicitor can explain and advise so that the donor can decide what conditions and limitations are appropriate in their particular circumstances.

It is also essential that the attorney understands the scope and limitations of their appointment. It is advantageous if the solicitor spends time with the attorney to ascertain this understanding.

Flanagan Legal Newcastle ( www.flanaganlegal.net.au )) will spend sufficient time with both parties so that they understand the great power conferred by an enduring power of attorney and the serious responsibilities that come with the wielding of such power.