A conflict transaction happens when there is a conflict between an attorney’s duty to the Principal and the attorney’s own interests. An attorney cannot enter into a conflict transaction unless the Principal, a Court or the Queensland Civil and Administrative Tribunal have authorised it.
If an Attorney does enter into a conflict transaction, without the transaction being authorised then, the Attorney’s conduct may be referred to the Queensland Police Service’s Fraud Unit. Attorneys who have entered into conflict transactions without authorisation may be charged with fraud – ‘dishonest application of property of another’.
As Attorney for the Principal, don’t:
- buy the Principal’s car;
- lend the Principal’s money to a close friend of the attorney;
- rent the Principal’s residential property to the attorneyor a relative of the attorney;
- use the Principal’s money to pay the personal expenses of the attorney, including, for example, the attorney’s personal travel expenses;
- buy the Principal’s house.
As Attorney for the Principal, do:
- keep accurate records and accounts of all dealings and transactions made under the Enduring Power of Attorney;
- keep your property separate from the Principal’s property;
- provide for the reasonable needs of a dependant of the Principal from the Principal’s estate;
- invest in an authorised investment ensuring that you abide by the prudent person rule;
- use the Principal’s money to give gifts and donations if it is of the nature of gift or donation the Principal would have given when they had capacity.