Enduring Powers of Attorney are a valuable tool for financial services customers but can raise difficult questions about whether the document is effective as well as a customer’s mental capacity and the rights of the attorney.

Each State has its own Powers of Attorney Act prescribing the formalities required for a person (the principal) to appoint an attorney to make financial and other decisions if the principal loses mental capacity.

I have set up a test “bot” to check the formalities for an Enduring Power of Attorney for NSW.

Often a financial institution first becomes aware of the power of attorney when the attorney produces the document or a copy and requests access to the principal’s accounts.

How does the financial institution satisfy itself that the formalities have been completed?

Let me know what you think. Try it out here.