The Importance of Powers of Attorney explained by legal experts
A Power of Attorney (POA) is like giving someone you trust a spare key to your life. You hope it’s never needed, but it’s there just in case. Life can be unpredictable; illness, injury, or age-related conditions can affect your ability to make decisions. That’s why planning ahead is so important. Anyone over 18 with decision-making capacity can (and should!) prepare a Power of Attorney. Watch our short, easy-to-follow ‘Power of Attorney explained’ video and learn why appointing a State Trustees as your POA could be life-changing.
State Trustees experts Narelle and Craig explain Power of Attorney and guide you through the process – watch here.
Book your Power of Attorney Appointment today
Book online or call 1300 138 672
What is decision-making capacity?
To create a Power of Attorney, you must have the ability to:
- Understand the facts and choices available
- Weigh up the consequences of each choice
- Understand how your decisions affect you and others
- Communicate your decision clearly
Your capacity can be affected by illness, dementia, or injury. A doctor can provide a letter of capacity to confirm you’re able to make legal decisions
Did you know?
You must set up an Enduring Power of Attorney while you still have capacity. Once capacity is lost, it’s too late to appoint someone voluntarily.
Book your Power of Attorney Appointment today
Book online or call 1300 138 672
When can a Power of Attorney be used?
An Enduring Power of Attorney can be activated:
- When you lose capacity
- Or earlier, if you need help managing your affairs
You can also pause (deactivate) or cancel (revoke) it at any time while you still have capacity. To revoke it, you’ll need to complete a formal revocation form and notify your attorney.
Types of Powers of Attorney
A Power of Attorney is a legal document that lets you choose someone you trust to make important decisions for you if you’re unable to do so. This could be a family member, a friend, or an organisation like State Trustees.
Think of it like an insurance policy that you set up in advance, just in case something happens. Even if it’s never used, it gives you peace of mind knowing someone you trust can step in when needed.
There are three types of Power of Attorney in Victoria:
1. Enduring Power of Attorney (Financial)
An Enduring Power of Attorney (Financial) allows you to appoint someone to manage your money and legal matters. This includes paying bills, handling your bank accounts, managing your property, and dealing with Centrelink or the ATO.
You can appoint State Trustees or another trusted person or organisation.
Your financial attorney can:
- Pay your bills
- Manage your bank accounts and investments
- Communicate with Centrelink and other financial services
- Handle your taxes and legal matters
2. Enduring Power of Attorney (Personal)
An Enduring Power of Attorney (Personal) lets you choose someone to make non-medical personal decisions for you. This includes decisions about your lifestyle, living arrangements, and support services.
Note: You cannot appoint State Trustees for this role.
Your personal attorney can decide:
- Where you live and who you live with
- What support or assisted services you receive
- What education or training you take part in
- Whether you go on holidays and where you go
3. Medical Treatment Decision Maker
A Medical Treatment Decision Maker is someone you appoint to make medical decisions for you if you’re too unwell or injured to decide for yourself.
This is similar to a Power of Attorney, but it specifically covers medical treatment. You cannot appoint State Trustees for this role, but organisations like the Office of the Public Advocate can help.
Your medical decision maker can:
- Consent to or refuse medical treatments
- Make decisions based on your values and preferences
- Speak with doctors and healthcare providers on your behalf
Book your Power of Attorney Appointment today
Book online or call 1300 138 672
Who can you appoint as your Power of Attorney in Victoria, Australia?
You can choose:
- A family member
- A trusted friend
- A professional, like State Trustees
Keep in mind: loved ones may not always have the skills to manage complex matters. That’s where professionals like State Trustees can help, with expertise in property, tax, pensions, aged care, and more.
Tip: Appoint a substitute attorney in case your first choice is unavailable or unable to act.
The risks of not having a Power of Attorney
If you lose capacity without a Power of Attorney, the Victorian Civil and Administrative Tribunal (VCAT) may appoint someone for you. This could be a family member or an organisation like State Trustees. But you won’t get to choose who that is.
That’s why it’s best to plan ahead and make your wishes clear while you can.
Book your Power of Attorney Appointment today
Book online or call 1300 138 672
Real-life example: How a Power of Attorney helped avoid a $450,000 financial crisis
The importance of Power of Attorney is explained simply yet powerfully in this real-life case:
The Situation:
One of our clients, a long-term resident in an aged care facility, was suddenly issued a large invoice. It included a Refundable Accommodation Deposit (RAD) and outstanding arrears, totalling nearly $450,000. This unexpected financial burden placed their care and well-being at serious risk.
How State Trustees Helped:
Because the client had appointed State Trustees as their Enduring Power of Attorney (Financial), we were able to act immediately. Our team negotiated with the aged care provider, successfully reducing both the RAD and arrears. We also arranged a more manageable payment structure tailored to the client’s financial situation.
The Outcome:
Thanks to the POA in place, our client avoided a major financial crisis and was able to continue receiving the care they needed without the stress of overwhelming debt.
Benefits of a Power of Attorney in Victoria, Australia
As this Power of Attorney guide has already demonstrated, there are many compelling reasons to make this appointment. Key benefits include:
- Peace of mind – Know someone you trust can step in when needed
- Freedom of choice – You decide who acts on your behalf
- Avoid legal delays – Prevent court involvement in urgent situations
- Financial protection – Ensure your money and assets are managed responsibly
How State Trustees Victoria can help prepare your POA documents
State Trustees offers a professional service to help you prepare your Enduring Power of Attorney documents. You can also update or create your Will during the same appointment.
How to Book:
- Book online: statetrustees.com.au/book
- Call us: 1300 138 672
If you can’t travel, we may offer a mobile service (conditions and additional fees apply).
Transparent fees and charges
Our State Trustees fees are transparent and fair. We itemise all services so clients have a clear understanding of costs before choosing our services. There are no surprise invoices or unexpected fees.
We hope this guide to Power of Attorney details has been useful. Need additional help? Our team is here to answer your questions. Call 1300 138 672.
Power of Attorney guide FAQs
How do I set up a Power of Attorney in Victoria?
It is simple and straightforward to write your POA with State Trustees Victoria. As the only state government-based organisation of our kind, we have been serving Victorians for over 80 years. Call us on 1300 138 672 or book an appointment online and see how easy it can be.
What happens if I don’t have an Enduring Power of Attorney?
If you lose the ability to make decisions for yourself, your family or close friends may need to apply to VCAT and have them appoint someone on your behalf. This could result in a complete stranger being your guardian or administrator, and therefore responsible for your affairs. Make that decision now while you can, and give yourself complete peace of mind.
Who can I appoint as my Power of Attorney?
You can appoint a member of your family, a good friend, or a trustworthy organisation like State Trustees to be your POA (Financial). If your preference is to appoint a loved one, just remember they may not have all the skills necessary to handle complex matters such as healthcare, tax, etc.
How long does it take to set up a POA in Victoria?
It takes as little as 1 hour to set up a Power of Attorney in Victoria.
Can I change my Power of Attorney at a later date?
You may revoke your POA at a later date, but only if you have the capacity to do so. You must write to the previously appointed person and explain that you are removing them from this service. You must also sign a revocation form from VCAT, which must be witnessed by two adults, one of whom is either a medical practitioner or has authorisation to witness affidavits.
How do I make a Power of Attorney in Victoria, Australia?
You can only prepare an Enduring Power of Attorney / Power of Attorney document at a time when you have decision making capacity to do so. This will ensure that you have the best-appointed person, ready to step in and act in accordance with your wishes where you are unable to do so should the need arise in the future. If you’re going to appoint State Trustees in this role, all you need to do is make a Power of Attorney appointment with our team.
Once your appointment is booked, we will email you a confirmation and send you a pre-appointment questionnaire to complete. A State Trustees Victoria team member will also contact you to confirm your identity.
During your appointment, we will talk through your circumstances and ask questions to understand your wishes. We allow time for you to ask questions and make sure you understand your options. We then prepare your Power of Attorney document for you to review and approve.
After you approve the document, we take care of the formal steps needed to ensure your Power of Attorney is legally valid.
What decisions can my Power of Attorney make?
The type of POA determines the decisions they can make.
Enduring Power of Attorney (Financial)
An Enduring Power of Attorney (Financial) allows your attorney to make decisions about your money and legal affairs. This can include:
- Managing your bank accounts
- Paying bills and expenses
- Buying or selling property
- Managing investments
- Dealing with Centrelink, the ATO, or other organisations
- Signing legal documents related to your finances
This type of Power of Attorney can operate:
- Straight away, if you choose, or
- Only if you lose decision-making capacity
Enduring Power of Attorney (Personal)
An Enduring Power of Attorney (Personal) allows your attorney to make personal (non-medical) decisions if you lose capacity, such as:
- Where you live
- What support services you receive
- Day-to-day personal matters
These powers only operate if you no longer have capacity and do not cover medical treatment decisions.
Do Powers of Attorney need to be witnessed or notarised?
Yes. In Victoria, a Power of Attorney must be properly witnessed to be legally valid. However, it does not need to be notarised.
Witnessing Requirements
When you sign a Power of Attorney or Enduring Power of Attorney, your signature must be witnessed by an authorised witness (such as a lawyer, accountant, Justice of the Police, police officer, registered medical practitioner, etc). Family members, your present lawyer or any of your carers are not authorised to act as your witness. In signing, the witnesses confirm that:
- You signed the document freely
- You appeared to understand what you were signing
- You had decision-making capacity at the time
Can I appoint more than one Power of Attorney?
Yes. In Victoria, you can appoint more than one attorney in a Power of Attorney, as long as you clearly set out the decisions you want them to make. When you appoint a Power of Attorney with State Trustees, we explain these options during your appointment.
How Multiple Attorneys Can Act
If you choose to have more than one attorney, you can choose whether they must act:
- Jointly – all attorneys must make decisions together
- Jointly and severally – attorneys can make decisions together or independently
You can also:
Appoint a substitute attorney who can step in if your first choice is unable or unwilling to act
Appoint attorneys for different roles (for example, one for financial matters and another for personal matters)
How do I revoke or cancel my Power of Attorney in Victoria, Australia?
As long as you still have decision-making capacity, you can revoke your POA in Victoria. You should:
- Prepare a written notice of revocation
This is a formal document stating that you are cancelling your Power of Attorney. - Sign the revocation while you have capacity
You must understand what you are doing at the time you revoke it. - Tell your attorney
You should formally notify your attorney (or attorneys) in writing that their appointment has been revoked. - Destroy copies of the old document
This includes any copies held by your attorney or other organisations, where possible.
If your Power of Attorney has been registered or stored, you should also update or remove (‘deregister’) it from any Power of Attorney registry or storage service.
Share this article
Original artwork ‘Four Sisters Coming Together’ by Melissa Bell 2023