A Power of Attorney is a legal document used to give another person the power and authority to do things on your behalf.
The person granting the power is usually referred to as the "donor" or "principal" and the person who is granted the power or authority is known as an "attorney". It is possible to appoint more than one attorney, in which case they are known as the "attorneys" and "alternative attorneys" in case your first choice of is unwilling or unable to act as an attorney.
In Victoria, you can appoint your attorneys to manage both your personal matters and your financial matters, or any one of the two.
Financial matters covers things like controlling bank accounts and selling property. Meanwhile, personal affairs includes for example, making decisions about where you are to live if you to go into a residential aged care home and how you are to be cared for.
It is a common mistake to assume that if you have a Will, you don't need a power of attorney. But, a Will only takes effect when you die. In fact, people may live for many years with the need someone to take care of them as they can't manage their own affairs.
Who will look after paying your bills and maintaining your home (or perhaps selling it for you) if you have an accident or suffer from dementia?
What if you are overseas and you need someone else to sign legal documents on your behalf?
In most cases, a power of attorney is used to appoint one's husband, wife or children, for example, to look after their personal and financial matters if they are incapacitated or simply too old to take care of these things themselves.
In Victoria, the appointment of an attorney is only effective if they accept the appointment and agrees to comply with their legal duties.
An attorney under an enduring power of attorney made in Victoria:
- must act honestly, diligently and in good faith; and
- must exercise reasonable skill and care;
- must not use the position for their own profit and must not act if there is a conflict of interest (unless authorised).
- must protect confidential information; and
- must keep accurate records and accounts.
You should be careful to appoint an attorney you trust and you are confident will make wise decisions in your best interests.
