Trustee Powers of Attorney
Enduring Powers of Attorney can be used by trustees who are intending to be absent overseas for an extended period. They need to be very sure that the residency issues relating to the fund are properly dealt with. Any slip could lead to the fund being ruled non-resident and therefore ineligible for tax concessions – a disaster. Our suite of documents provides all the necessary advice, a full explanation of the steps involved and all necessary documents.
A 'power of attorney' is a document a principal (a person or company) can sign to appoint another person (called the attorney) to act for the principal in relation to financial affairs, property matters or even, in some States, lifestyle matters such as medical treatment or where the principal lives and how they are cared for.
The most common use of a power of attorney is the appointment of a principal’s spouse or other close relative to deal with the principal’s property if the principal becomes of unsound mind. This is the enduring power of attorney.
But powers of attorney have wider uses than this.
The first is in the area of superannuation. The provisions that allow enduring attorneys to act as trustee (or director of the corporate trustee) of a Self Managed Superannuation Fund in place of the member are an important exception to the member-trustee requirement of Self Managed Super Funds (“SMSF”).
This enables individuals to keep their SMSF and remain a member. It gives them the freedom to pursue lifestyle interest, live overseas and become non-resident or to enjoy the benefits of longevity without having to run their SMSF.
The second additional use of a power of attorney is for client share trading. A limited power of attorney (LPOA) can be a very useful document for authorising and implementing some aspects of share trading for the principal by their broker or planner.