What Is a Power of Attorney? Everything You Need to Know
When planning for the future, it’s crucial to think about how your personal, financial, and medical affairs will be managed if you are unable to make decisions yourself. One of the most important legal tools to ensure your wishes are respected is a Power of Attorney (POA). Whether you live in Craigieburn, Melbourne, or anywhere in Australia, understanding how POAs work can help protect your interests and provide peace of mind for your loved ones.
In this guide, we’ll cover everything you need to know about Power of Attorney, including the different types, when they are needed, and how they are established under Victorian law.
What Is a Power of Attorney?
A Power of Attorney is a legal document that allows you to appoint someone to make decisions on your behalf. This person, known as your attorney, is legally authorised to act for you in specific situations or for an ongoing period, depending on the type of POA you establish.
In Victoria, Powers of Attorney are governed by the Powers of Attorney Act 2014. This legislation outlines the different types of POAs and the responsibilities of the appointed attorneys.
Types of Power of Attorney in Victoria
There are three main types of Power of Attorney recognised in Victoria:
1. Enduring Power of Attorney
An Enduring Power of Attorney (EPOA) allows someone to make financial and personal decisions on your behalf, even if you lose the capacity to make decisions yourself. This type of POA “endures” beyond your mental capacity.
Personal decisions: These include decisions about your living arrangements, care, and wellbeing.
Financial decisions: These include managing your bank accounts, paying bills, handling investments, and dealing with property matters.
This is one of the most common types of POA, particularly for those planning for their future as part of their estate planning.
2. Medical Treatment Decision Maker
In Victoria, a Medical Treatment Decision Maker is a separate legal role that allows you to appoint someone to make medical decisions on your behalf if you are unable to do so. This includes consenting to or refusing medical treatments based on your preferences.
3. General Power of Attorney
A General Power of Attorney is typically used for a specific period or purpose. It grants someone the authority to make financial or legal decisions on your behalf but does not continue if you lose capacity.
For example, if you are traveling overseas and need someone to manage your finances while you’re away, you could set up a General POA for that period.
When Do You Need a Power of Attorney?
There are several situations where having a Power of Attorney in place can be crucial:
1. Planning for Incapacity
No one knows what the future holds. Accidents, illnesses, or age-related conditions can affect your ability to make decisions. Having an Enduring Power of Attorney ensures that someone you trust will manage your affairs if you become incapacitated.
2. Managing Financial Affairs
A Power of Attorney can be useful if you need someone to manage your finances, pay bills, or handle property matters on your behalf. This is especially important if you travel frequently or have complex financial arrangements.
3. Medical Emergencies
Appointing a Medical Treatment Decision Maker ensures that your healthcare preferences are respected in case of a medical emergency where you cannot communicate your wishes.
4. Business Continuity
For business owners, having a Power of Attorney in place can help ensure that your business operations continue smoothly if you are temporarily unable to manage them.
How to Set Up a Power of Attorney in Victoria
Establishing a Power of Attorney in Victoria involves several steps. Here’s how you can get started:
Step 1: Choose the Right Type of POA
Consider your needs and choose the type of POA that suits your situation. For long-term planning, an Enduring Power of Attorney is often the best option.
Step 2: Select a Trusted Attorney
Your attorney should be someone you trust implicitly. They will have significant power over your affairs, so it’s essential to choose someone reliable, responsible, and capable.
Step 3: Complete the Necessary Forms
At Craigieburn Lawyers, we help produce the documents required to establish your Power of Attorney. Our experienced team can guide you through the process to ensure all legal requirements are met and your forms are correctly completed.
Step 4: Sign the Forms in Front of Witnesses
The POA documents must be signed in front of two witnesses, one of whom must be authorised to witness statutory declarations, such as a lawyer or justice of the peace.
Step 5: Store the Documents Safely
Once the forms are completed and signed, keep the original documents in a safe place and provide copies to your appointed attorney and other trusted individuals.
What Are the Responsibilities of an Attorney?
An attorney appointed under a Power of Attorney has legal obligations to act in your best interests. Their responsibilities include:
Acting honestly and diligently
Making decisions in line with your preferences
Avoiding conflicts of interest
Keeping accurate records of financial transactions
If an attorney fails to fulfill their duties, they can be held legally accountable.
Can a Power of Attorney Be Revoked?
Yes, you can revoke a Power of Attorney at any time as long as you have the capacity to do so. To revoke a POA, you need to:
Notify your attorney in writing.
Complete a Revocation of Power of Attorney form.
Inform any relevant institutions, such as banks or healthcare providers.
Why You Should Consider a Power of Attorney
Having a Power of Attorney can provide peace of mind. It ensures that someone you trust will manage your affairs according to your wishes if you are unable to do so.
At Craigieburn Lawyers, we understand that planning for the future can feel overwhelming. Our experienced team can help you navigate the legal requirements and ensure your Power of Attorney is set up correctly.
Contact us today to schedule a consultation and take the first step toward protecting your future.
Key Takeaways
A Power of Attorney is a crucial legal document that allows someone to make decisions on your behalf.
There are different types of POAs in Victoria: Enduring Power of Attorney, Medical Treatment Decision Maker, and General Power of Attorney.
It’s essential to choose a trusted attorney and follow the proper steps to establish your POA.
Having a POA in place ensures your affairs are managed according to your wishes, providing peace of mind for you and your loved ones.
Need help setting up a Power of Attorney or have any questions? Contact Craigieburn Lawyers today!