A continuing power of attorney gives the attorney broad powers, generally without ongoing supervision by the Administrator General. To add transparency, the law lets the grantor choose an “informed person”: someone who receives information about the attorney’s decisions and actions.
What does the informed person do?
The informed person does not make decisions and does not need to approve them. His role is to know what is happening. The attorney reports to him on decisions and actions in the areas defined, and the informed person may request information. If he is concerned that the attorney is not acting properly, he can turn to the competent authorities and even to the court.
Who can be an informed person?
You can choose one or more people: another child, a sibling, a close friend or a professional you trust. You cannot choose a relative of the attorney, unless the attorney himself is your relative. For example, if you appointed your daughter, you can choose your son as informed person, since both are your family.
Why it matters in families with several children
When one child is appointed attorney, the others sometimes feel excluded or suspicious. Appointing one of them as informed person creates transparency, reduces suspicion and also protects the attorney from future claims. See how to talk about a continuing power of attorney in the family.
What should be reported?
- Significant property actions: selling or renting an apartment, withdrawing savings.
- A change of residence, such as moving to assisted living.
- Significant medical decisions.
- Periodic reporting, for example once a year, on the state of the accounts.
You can also require the attorney to report to the Administrator General. In any case, the attorney must document significant decisions. See the duties of the attorney.
Where do you go from here?
Every person and every family is different, so a good continuing power of attorney is built around the assets, the family relationships and the wishes of the person granting it. At Paz Israel & Co. Law Office we draft continuing powers of attorney and advance directives, and we also support families when the document comes into force. For more information see our continuing power of attorney page, or contact us to schedule a meeting.
This article provides general information, is correct as of the time of writing, and does not constitute legal advice or a substitute for reviewing your specific circumstances.