Power of Attorney FAQ - Australia-NSW

Power of Attorney FAQ - Australia-NSWPower of Attorney FAQ - Australia-NSWGeneral InformationWhat is a Power of Attorney?A Power of Attorney is a document in which one rolle (the Donor) appoints another partie (the Attorney) to act for him or her. There are many reasons why you might want to appoint someone else to look after your financial affairs. For example, if you are going to be out of the country for a lengthy period of time, you might want someone to do your banking while you are gone. If you are approaching old age, you may want to give a Power of Attorney to a partie you trust so that he or she can manage your property for you.What are the differences between enduring and ordinary Powers of Attorney?There are two major types of Powers of Attorney ordinary and enduring.An ordinary Power of Attorney is only valid as long as the Donor is capable of acting for him or herself. If the Donor dies or becomes mentally incompetent, the Power of Attorney is invalidated.An Enduring Pow er of Attorney remains valid even if the Donor later becomes mentally incompetent. (Note the Donor must be competent at the time the Power of Attorney is made.)In either case, the Power of Attorney becomes invalid when the Donor dies. A Power of Attorney cannot be used to bequeath property upon the death of the Donor.What are the differences between general and specific Powers of Attorney?A general Power of Attorney is one that gives the Attorney the authority to do anything the Donor could do him or herself. A specific Power of Attorney is one that gives the Attorney authority to act for a particular purpose. (For example to buy or sell a particular piece of property.)Will a Power of Attorney still be valid after the Donor dies?NO. Generally Speaking, when a person dies, the Executor (also called a Personal Representative) appointed in the persons Last Will and Testament takes control of the deceased persons property and distributes it according to the instructions in the Will. If there is no Will (or if the Will is invalid), each jurisdiction has intestacy legislation that distributes the deceased persons property to his or her relatives according to a set of rules. A court generally appoints an Administrator to oversee this process. Unfortunately, the deceased persons wishes are not taken into account during the process (which can be very lengthy), since they have not been formally expressed in the proper manner.Will a Power of Attorney allow me to appoint someone to make welfare and medical decisions on my behalf?In most of Australia, powers of attorney do not give someone the right to make decisions about your welfare or medical treatment. Usually, a medical power of attorney or anticipatory directive is required to deal with non-financial matters. The exception to this rule is found in Australian Capital Territory and Queensland. In the Australian Capital Territory you can use your Enduring Power of Attorney to appoint someone to run your everyday affair s (other than property and money) and consent to medical treatment and medical donation while you are incapacitated. In Queensland you can use your Enduring Power of Attorney to appoint someone to make personal and health decisions when your capacity is impaired.The DonorWho is the Donor?The Donor is the person who needs someone else to act for him or her. The Donor must be an adult. The Donor must be capable of making his or her own decisions at the time the Power of Attorney is executed (signed).What is incapacity?A person is incapable of managing property if the person is unable to understand information relevant to making a decision about the management of property, or if the person cannot appreciate the foreseeable consequences of making (or not making) a decision about the management of property.The AttorneyWho is the Attorney?The person appointed by the Donor is called the Attorney. The Attorney is the person who acts for the Donor.Does the Attorney have to be a lawyer?No, th ere is no need for the Attorney to be a lawyer. (See below for Attorney qualifications.)What qualifications does an Attorney need to have?The Attorney must be a capable adult. The Attorney cannot be an undischarged bankrupt. The Attorney should not be the owner, operator or employee of a nursing home or extended care facility in which the Donor is a resident.What qualities should I look for in an Attorney?Your Attorney must be someone whom you trust completely. In addition, remember that your Attorney will have complete authority to deal with your financial and legal affairs (subject to any limitations or restrictions specified in your Power of Attorney). You should ensure that the person you choose has adequate financial management skills and sufficient time to handle your affairs properly. Your Attorney must be available when required, be able to objectively make decisions and be able to keep accurate financial records.What are the responsibilities of my Attorney?Your Attorney has the following responsibilities to act in your best interest to keep accurate records of dealings/transaction undertaken on your behalf to act for you with the utmost good faith and to avoid situations where there is a conflict of interest and to keep your property and money separate from their own.Is it okay to appoint a relative as Attorney?Yes, people often appoint relatives as Attorneys.Can my Attorney also be a beneficiary in my will?Yes.What are Joint or Joint Several Attorneys?Sometimes a Donor will want to appoint two Attorneys. In that case the Donor must decide whether the Attorneys will be joint Attorneys or joint and several Attorneys. Joint Attorneys must act together. They must both agree before any action can be taken, and they must both take the same action at the same time. If one is absent, no action can be taken. Joint and several Attorneys can act together or individually. Either one can take an action without consulting the other. If one is absent, the other ca n still act.Place and TimeWhat is Jurisdiction?A jurisdiction is a place that has its own laws. It is a territory with boundaries, such as a state or a province. For example, California is a jurisdiction in the United States, Ontario is a jurisdiction in Canada, Scotland is a jurisdiction in the United Kingdom and Queensland is a jurisdiction in Australia.What is the Governing Law?A Power of Attorney is governed by the law of the jurisdiction where the actions of the Attorney will be performed. Normally, this is the place in which the property of the Donor is located. Therefore, it is not a good idea to appoint an Attorney who resides in a different jurisdiction, unless the property or assets you want the Attorney to deal with are also in the different jurisdiction. If you anticipate that your Attorney will be acting in more than one jurisdiction, you should probably make separate Powers of Attorney for each jurisdiction.Examples If your bank accounts and other property are located in the jurisdiction where you live, you will want to appoint an Attorney who lives in the same jurisdiction. If you live in one jurisdiction but have a bank account or other property someplace else, and you want an Attorney to deal with that property, you will want to choose the place where the property is located as the governing law, and appoint an Attorney who is located in (or is willing to travel to) the same jurisdiction as the property.When does a Power of Attorney start?The Donor can specify the Power of Attorney to start either immediately when the Attorney accepts (or as each of the Attorneys accept) the Appointment on and from a specified date up to and including a later specified date when the Attorney considers that the Donor needs assistance managing his or her affairs or from an other time or fest as specified by the Donor.NOTE In New South Wales, an Enduring Power of Attorney does not confer authority until the Attorney accepts the appointment by signing the instrume nt creating the power.How/when does a Power of Attorney end?An ordinary Power of Attorney ends automatically when the Donor becomes mentally incapacitated or dies. An Enduring Power of Attorney ends automatically when the Donor dies. As long as you are mentally capable, you may revoke your Power of Attorney at any time by notifying your Attorney (in writing) that the Power is revoked and destroying the original Power of Attorney. Otherwise, a Power of Attorney continues in effect indefinitely, unless the document specifies an end date.Can I revoke my Power of Attorney after I have become incompetent?A person who is incompetent cannot revoke an Enduring Power of Attorney. However, an ordinary Power of Attorney is automatically revoked when the Donor is found to be incompetent.How do I revoke my Power of Attorney?You can revoke, or cancel, a Power of Attorney by giving your Attorney a written notice saying that his or her power has ended. Also, you may make a new Power of Attorney tha t states your previous Power of Attorney is now revoked (but you must still notify the previous Attorney of the revocation). Third parties (e.g., people or organisations that have been dealing with the Attorney) must also be notified. Additionally, if your Power of Attorney is registered you must also register the revocation.Please note that if you fail to inform your attorney of the revocation, your Attorney can legally continue to make decisions on your behalf.PowersShould I put restrictions on my Attorney?When you give a general Power of Attorney, you give your Attorney the authority to do anything you could do yourself, with a few exceptions - such as areas where you possess skills that your attorney doesnt (e.g. if you are a dentist, you cannot authorise your Attorney to practice dentistry on your behalf). But there may be some things you would prefer your Attorney did not do. For example, you may want to require that your Attorney get prior approval from you before signing che ques for large amounts on your account.Should my Attorney be allowed to personally benefit from managing my assets?If the person you are appointing as your Attorney is also a member of your family or a beneficiary in your will, you may want that person to be able to personally benefit from managing your assets, since you intend that person to become owner of the assets eventually. Generally, however, it is probably not a good idea to allow your Attorney to personally benefit from managing your assets as this creates a conflict of interest for your Attorney, who is legally obligated to act in your best interest, not his or her own best interest.What can the Attorney do?The Attorney may transact business respecting the Donors property in all areas specified by the Donor.Is the Attorney obligated to do anything?Generally speaking, the Attorney is not obligated to act for the Donor. However, in some circumstances the Attorney may agree, in writing, to accept an obligation to take action when necessary. When the Attorney acts on behalf of the Donor, the Attorney must act in the best interest of the Donor.Does my Attorney have the authority to act while I am still available and able to take care of my own finances?Generally speaking, a Power of Attorney is effective as soon as it is executed (signed and witnessed, etc.) whether or not the Donor is available or able to handle his or her own affairs. However, the document might specify that it will only be effective under certain conditions. For example, some Powers of Attorney specify that they will not come into effect unless and until the Donor has become mentally incompetent to handle his or her own finances. Note Some jurisdictions do not allow Powers of Attorney that commence upon the occurrence of a condition or event such as mental incapacity.If I authorise my Attorney to make gifts, who is allowed to receive gifts?Your Attorney will be allowed to give a gift only if the gift is to a relative or close friend o f the Donor and is of a seasonal nature or for a special event (e.g. birthday or wedding) or the gift is a donation of the nature that the Donor made when the Donor had capacity or the Donor might reasonably be expected to make.The gifts value must be reasonable having regard to the Donors financial circumstances and the size of the Donors estate.NOTE The term close friend refers to another individual who has a close personal relationship with the Donor and a personal interest in the Donors welfare. The term relative refers to a mother, father, wife, husband, daughter, son, step-daughter, step-son, half-sister, half-brother or grandchild of the Donor, or, if the Donor is a party to a domestic relationship within the meaning of the Property (Relationships) Act 1984 any person who is a relative (as listed above), of either party to the relationship.If I authorise my Attorney to use my money for my Attorneys own benefit (or for the benefit of a third party), what is my Attorney allowed to spend my money on?Your Attorney can spend your money only for the following types of expenses housing food education transportation and medical care and medicationThe amount of the benefit must be reasonable having regard to the Donors financial circumstances and the size of the Donors estate.Signing DetailsWhat does it mean to execute a document?When a person executes a document, he or she signs it with the proper formalities. For example If there is a legal requirement that the signature on the document be witnessed, the person executes the document by signing it in the presence of the required number of witnesses.How should I sign my Power of Attorney document?To be valid, you must sign the document with your usual cheque signing signature. You should also initial each page of the document. The signing and the initialing of the pages must occur in the presence of your notary or witness(es).After you have signed and initialed your document in front of your notary or witness(es ), your notary or witness(es) must sign on the applicable page of the Power of Attorney and should initial each page. This must occur in your presence.Can anybody act as a witness?Your witness(es) cannot be your spouse, partner, child, your Attorney or alternate Attorney, or the spouse of your Attorney or alternate Attorney. Some jurisdictions disallow witnesses that are mentioned in your will, either as beneficiary or executor/executrix. You should generally avoid having witnesses that have any financial relationship with you. The witness(es) must be of legal age in your jurisdiction, they must have capacity and be mentally capable of managing their property and making their own decisions.Who can Witness an Enduring Power of Attorney?Recent changes to the Power of Attorney legislation have resulted in new, more specific requirements for witnesses of an Enduring Power of Attorney. At the end of all Enduring Power of Attorney forms there is a prescribed witness certificate. This cert ificate can only be completed by solicitor or barrister Registrar of a NSW Local Court a licensed conveyancer who has completed an approved course under the Powers of Attorney Act or an employee of Public Trustee NSW or a Private Trustee company who has completed an approved course under the Powers of Attorney Act.The certificate states that the witness explained the effect of the Power of Attorney directly to the Donor before it was signed and was satisfied that the Donor appeared to understand the effect of the Power of Attorney.If the Witness has any doubts about the Donors ability to understand what is being signed, they are required to take reasonable steps to confirm the Donors mental capacity.Does it matter where the Power of Attorney document is signed and witnessed?If your document will be used in a different jurisdiction - but not in a foreign nation - there is no herausforderung with having the document signed and witnessed where you live, rather than where the document w ill be used. The witnessing requirements (number of witnesses required, whether or not notarisation is needed) should still be those of the place where the Power of Attorney will be used, however.Can I use my Power of Attorney in a different state/territory?Some territories and states have mutual recognition provisions in their Power of Attorney legislation which provide portability of powers within Australia. Before trying to use a power of attorney created in a different jurisdiction review the legislation of the jurisdiction where you wish to use the power of attorney to ensure that your Power of Attorney will be accepted.What if my Power of Attorney will be used in a foreign nation?If your document is intended to be used in a foreign nation, you may have to have it authenticated or legalised. This is a process whereby a government official (e.g., the Secretary of State, the Foreign Office, the Office of the Attorney General - depending on where you live) certifies that the signa ture of the authority (e.g., notary or solicitor) on your document is authentic and should be accepted in the foreign nation. For more information about document authentication and legalisation, contact the local consulate/embassy of the foreign country your document will be going to, or one of the following government web sitesUnited States https//travel.state.gov/content/travel/en/legal-considerations/judicial/authentication-of-documents/office-of-authentications.html/Australia dfat.gov.au/brisbane/index.htmlOther Considerations Do I have to pay my Attorney?Depending on the kind of relationship you have with the person who will be acting as your Attorney, you will have to consider whether they should be paid for their services. You can stipulate in your document that your Attorney will not receive any payment except the reimbursement of out-of-pocket expenses, or you can agree to pay your Attorney a specified amount. If you prefer, you can authorise your Attorney to pay him or her self a reasonable amount for acting for you. However, you do not need to pay your Attorney for the power to be effective. Generally, payment is only made when a trust company or other professional person/organisation is acting as your Attorney.Should I have my Attorney prepare financial statements?You can require your Attorney to prepare periodical financial statements and send them to your accountant, lawyer or some other person you choose. This is a good deal of work, however, and most people do not require it of unpaid Attorneys.Note Attorneys should keep records of their actions.What are co-owned assets?If your Attorney is a family member, you may be joint owners of property. It is important to state this in your document, so that third parties dealing with your Attorney understand that the Attorney is entitled to co-own assets with you. Otherwise, the co-owning of assets could give the impression of impropriety.Do I have to record or register my Power of Attorney with the Land Titles Office?Generally speaking, a Power of Attorney has to be registered with a land titles office/department if it could affect real property (land or other real estate). For example, if the Attorney is authorised to mortgage or sell the Donors real estate, or to purchase real estate on behalf of the Donor, the Power of Attorney will probably have to be registered at the appropriate office. Usually there is a fee for registration of the document. Additionally some jurisdictions provide stricter registration requirements. In Tasmania, all Powers of Attorney (whether general or enduring) must be registered with the Recorder of Titles. In Northern Territory, all Enduring Powers of Attorney must be lodged at he Registrar-Generals Office.Is any stamp duty payable on my Power of Attorney?There is no duty payable on powers of attorney under the Duties Act 1997 (NSW).

7 important things every 20-something should know about money

7 important things every 20-something should know about money7 important things every 20-something should know about moneyMy co-founder at Digital Press said something to me a while ago that fundamentally changed my perspective on money.He said, We havent personally experienced a recession yet.I welches only 18 years old when the markets crashed in 2008.I hadnt yet stepped into the real world. I didnt have a full-time job, or a working relationship with money. I didnt truly have context or a larger understanding of what a crash meant, and how it was impacting peoples lives.Looking back, of course, it makes sense why my parents were overly stressed during my senior year of high school. I can at least imagine what they must have been feeling. But I would be naive to think I truly know what that sort of burden feels like myself.At 28 years old, I try to remember that one day I will most likely experience a similar economic burden.When youre out of school, and you start working your firs t job, and even as you begin to make strides in your career, it can be very easy to think that whats currently happening will happen this way forever. As soon as you start making good money, you assume the good money will keep flowing.Older, wiser, mora experience people than me know this is far from the truth.As a result, I try very hard to remember that life ebbs and flows. Markets go up, and markets go down. Opportunity will boom, and opportunity will slow. And those who remain successful over the long term optimize for these waves of change.Here are 7 things I encourage all 20-somethings to keep at the forefront of their minds when it comes to personal finances1. Its leid about how much you make.Its about how much you save.My dad used to say this all growing up, but again, this is a lesson you have to feel and encounter in your own life to truly understand.I know plenty of people who make $250,000 per year, and save $5,000 per year. They live terrific lives, but they also put th emselves at an unnecessary amount of risk.Conversely, I know people who make $80,000 per year, and save $20,000 per year. They live modestly, but they set themselves up for success in the long run.I strongly encourage you to live like the latter. And as your income scales, so too should the amount you save.2. Never underestimate Cash On HandWhen I first started making a little bit of money, I put everything I had into stocks.I wanted to start seeing my savings compound on themselves.This was great in theory, right up until the moment I decided to leave my 95 job and become an entrepreneur. Suddenly, having money in stocks, although liquid, felt unnecessarily risky. If the markets tanked tomorrow, that would severely affect my safety net.Part of saving money means having a balance between cash you invest, and cash you keep on hand. A good rule of thumb a mentor of mine gave me was to always have at least 3 months of living expenses on hand. Personally, I prefer 612 months.3. Live by the 50/25/25 modelSince the moment I graduated college, Ive taxed all of my side-hustle income at the highest tax bracket.The reason I do this is two foldFirst, I wanted to begin cultivating the mentality that one day I would end up in the highest tax bracket.And second, I never wanted to end a year and realize I owed more money than I had set aside. I wanted to pay myself a bonus at the end of the year - not need to withdraw even more money to make up for my math error.In the same way I tax all of my side-hustle income at nearly 50% (meaning I put 50% of everything I make away in an account to pay taxes with at the end of the year), I also try to save at least 25% of the remaining 50%. So that means for every $100 I make, I put $50 away for taxes, $25 into savings, and leave $25 to use as income I can spend on living expenses, travel, restaurants, etc.The reason I love this model is because it keeps all my primary variables constant (taxes + savings), and if I ever want to spend m ore or upgrade my lifestyle, then I need to find ways to make more money overall - instead of taking money out of taxes or savings.4. Have a plan for the worse-case scenarioOne of the biggest reasons Im so adamant about saving money is to be able to navigate another recession.Every 20-something, regardless of how much you make (I was saving $20 per month back when I first graduated college and was making just about minimum wage), you should work to save and build a financial foundation. Its one of those things that seems impossible or even insignificant when you arent making very much, but you have to continuously remind yourself that small steps really do add up.$50 will turn into $100.$100 will become $500.$500 will become $2,000.And before you know it, youll have $5,000 in your savings account.The first few years of saving are always the hardest. But after about 3 years of cultivating the habit, and as soon as you see that first comma in your savings account, your entire mentali ty will change - and youll realize the value of saving over the long term.5. Work to create multiple streams of revenueEspecially in todays world (where Millennials struggle to find jobs - and the Internet is an easily accessible resource), its imperative that you build multiple streams of revenue for yourself.For example, here are mineI pay myself a salary out of my company, Digital Press.I published a book, Confessions of a Teenage Gamer, as well as a handful of smaller eBooks on my website.I am an advisor to a couple blockchain companies (paid as a consultant)I wrote for Inc Magazine for about 3 years (and was paid per pageview), and recently started publishing my work under Mediums paid program.Your goal should be to create 7 streams of revenue for yourself, so that if one declines, the others can keep the ship moving in the meantime (while you either repair what went wrong, or create a new stream of revenue for yourself).*Bonus my last tip here would be to take all streams of revenue except your primary (salary) and have them go directly into a savings/investment account. This will force you to continue living within your means, while working to increase the amount youre able to save or invest.6. Spend time around financially prudent peopleThis is a statement that should scale based on income level.Again, there are some millionaires who spend every penny they make. There are other millionaires who save or invest a large % of their income. You want to hang around the ones who live like the latter, and not the former.The biggest reason this is so important is because, especially in your early 20s, you wont have very much extra income to save or invest - which means, of what you do have, you want to put it to good use. And if you hang around people who blow their money, chances are, you will too.Instead, I encourage you to seek out people who are very responsible with money. For me, I sought out people I knew were successful and yet didnt live overly lavi sh lifestyles family friends, people in my network, etc. I wanted to know how they treated their money, so I could learn how to do the same.7. Dont ever bet it allIf you are ever faced with an opportunity for a financial upside that requires you to put it all on the line, do not accept it.When youre young, these kinds of decisions are fairly easy to recover from. Even if you were to bet it all and lose, you would still have years upon years to make it back. Youd be fine.But the reason I strong discourage this way of operating is because itis the beginning of an even worse habit that can linger over time. You dont want to get used to betting it all. You want to get in the habit of betting what youre willing to lose, without compromising your long-term financial position.This article was originally published on Medium.

The 3 Worst Reasons to Skip a Work Meeting - The Muse

The 3 Worst Reasons to Skip a Work Meeting - The MuseThe 3 Worst Reasons to Skip a Work Meeting On some weeks, you have a long to-do list, and on top of that, an even longer list of meetings youre required to attend. Those meetings arent going anywhere, but neither are the tasks youve committed to completing. So naturally, when you find an opportunity to skip one of the meetings, you should take it, right? In some cases, yes. For example, when youve been invited just in case. Or when you know its just a status update meeting and you dont need the updates. But there are some pretty bad reasons for backing out of a meeting, too. And by bad, I mean youre going to lose your teams respect, and possibly, even opportunities if you use one of unterstellung excuses.1. You Need to Grab FoodThere are few things on the face of the earth that motivate me as much as a meal. I get how real hunger pains are, especially in the middle of a long stretch of meetings. But as empathetic as I am to you whe n youre desperate for a snack break, its a terrible excuse to pump the brakes on an important meeting. And I know you know this- yet I also know that there are people who use this excuse when theyre backing out. InsteadPack one of your desk drawer with easy-to-grab snacks- preferably ones that wont be grating for everyone else to listen to as you eat them. 2. You Have an Urgent Errand to RunI have a handful of weddings to go to this summer, which means I have a handful of errands to run every week. And of course, all those errands, usually involve stores with very specific hours. While you hate to cancel so last-minute, you just dont know when youll pick up your suit from the tailor if not right now. InsteadDo a quick assessment of your day and put all your assignments in priority order. Is there something else besides this meeting that you can put off? Could you stay later in order to get everything done? What about coming in earlier?It might be inconvenient for you, but its better to stay an hour later, than anony or delay all your co-workers because you cant attend a meeting. 3. You Have Too Much Work to Get DoneThere are days when you feel like you simply have too much to do- and I get that. And on those days, attending meetings can feel like a waste of your time. But at the same time, skipping this meeting can create more work for the people involved in it- and thats not necessarily fair. InsteadAsk your manager for help deciding whats most important for you to do- the tasks on your to-do list or this meeting. If its truly impossible to get it all done and the meeting is more important, ask for a deadline extension on your other work.You might be thinking, This is great, but what if Im the exception to whats above? Alright, Ill work with you here. If you absolutely need to cancel, heres the email you need to send to attendees. Of course, customize based on what the meetings about and what your role is in it.HiI cant attend todays/tomorrows meeting. I know this is last minute and I apologize/I know this will delay our progress and I apologize.Note These are optional linesIs there any data/reports/insights I can send in advance to help move the conversation forward? If any decisions need my input, Ill answer them ASAP on email/Slack/text message. Could we get this conversation departureed on email- happy to lead the charge on that.Sorry again,Your Name Meetings get a bad reputation, and in a lot of cases, its warranted. Nobody likes to have their time wasted on something that could be easily resolved over email or quickly at your desk. But the fact that you dislike them isnt a good reason to start backing out at the last minute- especially if they fall into the important category. Instead, make a bigger effort to both remove meetings from your schedule that truly arent needed (this article can help with that) and organize your weekly schedule in a way that allows for lunch breaks and pockets of time to deal with personal issues.Gettin g organized isnt always easy- but its definitely worth it