Powers of Attorney enable you to appoint a person or people you trust to make decisions for you if you lose capacity due to illness or injury, or simply need assistance managing your affairs as you age.
The most common documents in Victoria are:
1. Enduring Power of Attorney (financial and personal matters):
This document gives your attorneys the power to make financial and personal decisions on your behalf. You can decide whether the power commences immediately, when a doctor determines that you have lost decision making capacity, or on a specified date. You can also include conditions or limitations in the document if you wish.
The financial power relates to your assets and finances and authorises your attorneys to do things such as selling your home, managing your investments and paying your bills. The personal power allows your attorneys to make decisions about your lifestyle, such as where you live and what activities you can undertake.
Your attorneys must always act in your best interest.
2. Medical Treatment Decision Maker:
This document enables you to appoint a person who can make medical and healthcare decisions for you if you have lost decision making capacity.
Your appointed decision maker can consent to medical treatment, refuse treatment and withdraw treatment on your behalf. Your decision maker must make decisions that they believe you would make, based on your known values and preferences.
What happens if you don’t have Powers of Attorney?
If you lose decision making capacity and do not have valid Powers of Attorney in place, someone will need to apply to the Victorian Civil and Administrative Tribunal (VCAT) to obtain the authority to act on your behalf – a process that can be stressful, complex, and costly. There is also the risk that VCAT might appoint a person you would not have chosen yourself to manage your affairs.
Here are some tips to ensure your choices are respected:
Start Early: Making Powers of Attorney while you are healthy and of sound mind gives you full control over selecting trusted people who understand your wishes. You cannot make Powers of Attorney if you have lost capacity.
Choose Carefully: Appointing trustworthy and reliable people who will respect your wishes and uphold your values is critical.
Review Regularly: Circumstances change. Periodically reviewing and updating documents ensures that they remain current and appropriate, especially after major life events.
Planning ahead is key to safeguarding your rights and giving you peace of mind.
Harwood Andrews’ dedicated Wills & Estates team can prepare tailored documents specific to your unique family and financial circumstances.
03 5225 5225
