Frequently Asked QuestionsWhat is a Power of Attorney?A power of attorney is a document in which one person (the principal) appoints another person (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 person you trust so that he or she can manage your property for you. What is the difference between Ordinary and Enduring power of attorney?An Ordinary power of attorney is only valid as long as the donor is capable of acting for him or herself. If the donor becomes mentally incompetent (loses capacity), the ordinary power of attorney ends.
An Enduring power of attorney remains valid even if the donor later becomes mentally incompetent. The donor must be competent at the time an enduring 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 is meant by "incapacitated"?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.