---
title: "Record whether an instrument expressly authorises a benefit to a third party"
url: "https://ailawframework.com/practice/elder-law-and-powers-of-attorney-guardianship/record-whether-an-instrument-expressly-authorises-a-benefit-to-a-third-p"
type: "task"
site: "AI Law Framework"
id: "A18-FL20261022-7"
practice_area: "Elder Law & Powers of Attorney / Guardianship"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Record whether an instrument expressly authorises a benefit to a third party

> Quote the clause, if any, that speaks about a benefit to someone other than the principal.…

Canonical page: https://ailawframework.com/practice/elder-law-and-powers-of-attorney-guardianship/record-whether-an-instrument-expressly-authorises-a-benefit-to-a-third-p  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Elder Law & Powers of Attorney / Guardianship](https://ailawframework.com/practice/elder-law-and-powers-of-attorney-guardianship.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Quote the clause, if any, that speaks about a benefit to someone other than the principal. Describe the proposed assurance, document or act in the words of the lawyer's instructions, including who would receive the benefit. Note whether the instrument uses a prescribed expression that the lawyer has identified as the expression set out in Schedule 3 for this section. Do not say the act is authorised, and do not list the benefits Schedule 3 specifies. |
| What the lawyer must review | The lawyer decides whether section 13 of the Powers of Attorney Act 2003 (NSW) allows the proposed act. A prescribed power of attorney does not authorise an assurance or other document, or any other act, as a result of which a benefit would be conferred on a third party, unless the instrument expressly authorises the conferral. The section says that whether the conferral is expressly authorised is determined by the general principles and rules of the common law and equity on the interpretation of powers of attorney. An instrument that includes the prescribed expression set out in Schedule 3 authorises the kinds of benefits that Schedule specifies for that expression. Schedule 3 was not opened, so those kinds are not listed. This is not the gifts rule and it is not the rule about a benefit to the attorney. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

Trace relied-on content to independent sources and check for relevant material the output has missed.

- What the AI does: Quote the clause, if any, that speaks about a benefit to someone other than the principal. Describe the proposed assurance, document or act in the words of the lawyer's instructions, including who would receive the benefit. Note whether the instrument uses a prescribed expression that the lawyer has identified as the expression set out in Schedule 3 for this section. Do not say the act is authorised, and do not list the benefits Schedule 3 specifies.
- What the lawyer does: The lawyer decides whether section 13 of the Powers of Attorney Act 2003 (NSW) allows the proposed act. A prescribed power of attorney does not authorise an assurance or other document, or any other act, as a result of which a benefit would be conferred on a third party, unless the instrument expressly authorises the conferral. The section says that whether the conferral is expressly authorised is determined by the general principles and rules of the common law and equity on the interpretation of powers of attorney. An instrument that includes the prescribed expression set out in Schedule 3 authorises the kinds of benefits that Schedule specifies for that expression. Schedule 3 was not opened, so those kinds are not listed. This is not the gifts rule and it is not the rule about a benefit to the attorney.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Do not treat a gift clause, or a benefit-to-the-attorney clause, as authority under this section.
2. Do not list the benefits in Schedule 3. That Schedule was not opened.
3. Do not decide that general words of authority are an express authority.
4. Leave the common-law and equity reading to the lawyer.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Sources

- [Powers of Attorney Act 2003 (NSW) s 13, benefits to third parties](https://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/nsw/consol_act/poaa2003240/s13.html) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/elder-law-and-powers-of-attorney-guardianship/record-whether-an-instrument-expressly-authorises-a-benefit-to-a-third-p/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*