Thursday, 6 June 2013

Attorney’s Power to substitute

An interesting point to remember is that when a Principal in a General Power of Attorney appoints an Attorney, the Attorney can’t delegate his or her powers to another person by appointing a substitute Attorney unless the powers contained in the General Power of Attorney expressly authorised the Attorney to do so.

There are procedures to follow in the event that that occurs particularly if actions are taken by the substitute Attorney that involves dealing with real property.
 
The case is different in the circumstances where the Principal has appointed an Attorney under an Enduring Power of Attorney. An Enduring Power of Attorney is that form which is more commonly used estate planning where for example a husband and wife each appoints the other as their Attorney such that each Enduring Power of Attorney operates as a “Living Will” for the Principal. An Enduring Power of Attorney can’t contain a power whereby the Attorney is authorised to appoint a substitute.