and decision specific. There is the common law test for the capacity of adults to
make powers of attorney
4
as in
Szozda v Szozda
, which found that the capacity
would vary depending on the complexity of the maker's affairs. Graham has a large
number of property and other interests therefore it would be easier to find a lack
of capacity than someone who may only have a house and bank account.
5
Graham must understand the nature of the transaction when it is explained.
6
. The
nature of a general and enduring power of attorney was explained to him. I advised
Graham that the enduring power of attorney will allow the attorney to undertake
any function that would lawfully permit the attorney to do without first consulting
Graham (the maker) beforehand.
7
Graham must ask himself, is it to his benefit and in his interest to allow another
person to control his whole affairs and that person will act in the same way that he
would? Also, is the person he chooses as an attorney someone trustworthy and
responsible to deal with all of his affairs?
8
I informed Graham of the full meaning
and significance of the power attorney he wishes to sign.
When assessing capacity it is beneficial to assess the capacity of the person's
overall mental function and health status, i.e. a overall assessment of Graham's
mental and cognitive state and an assessment of his capability of making
judgement, reasoning and planning. In addition to this, further assessments should
be completed to ensure that Graham is appointing a specific power of attorney
freely and without any influence.
Enduring Guardianship
4 Nick O'Neil and Carmelle Peisah, 'Capacity and the Law' (2011) 1
Sydney
University Press Law Books,
10.3.1
5
Szoda v Szoda
[2010] NSWSC 804
6
Gibbons v Wright
[1954] HCA 17
7 O'Neil and Peisah, above n 4, 10.3.1
8
Szoda v Szoda
[2010] NSWSC 804
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