How to choose a Power of Attorney

Choosing a Power of Attorney is not just paperwork; it is a decision about who will step in if you cannot act for yourself.

In Victoria, a Power of Attorney can have authority over major parts of your life, including money, property and legal decisions. In other words, choosing carefully really matters.

For over 80 years, State Trustees has been the preferred Power of Attorney provider for countless Victorians. Drawing on that experience and knowledge, we’ve prepared this article to help you make an informed and confident decision about choosing a Power of Attorney.

Many people create a Power of Attorney as part of their estate planning. They often do it quickly and move on. However, the choice behind the document is critical. A Power of Attorney may need to act during illness, injury or loss of capacity. On many occasions, they may need to make these decisions under pressure.

When it comes to POAs, mistakes can be difficult to undo. Problems often occur because the original arrangement was not clear enough. So, what can you do to avoid this from happening? Let’s find out…

Before choosing anyone as your POA, first consider what the role involves.

A Power of Attorney may need to:

• Manage money and property
• Keep records and receipts
• Make decisions under pressure
• Act only in your best interests
• Follow Victorian law at all times

This is not a casual role; it requires skill, time and judgement.

ℹ️ Want to really dig into the detail? Read our Power of Attorney guide.

In Victoria, a Power of Attorney must meet basic legal requirements.

They must:

• Be 18 years or older
• Have decision-making capacity
• Agree to take on the role

A Power of Attorney can be:

• A family member
• A friend
• A professional organisation

An independent organisation such as State Trustees can also act as a Power of Attorney.

The most important requirement is that the arrangement is legally valid under Victorian law and that the Power of Attorney acts in your best interests at all times.

Many Victorians ask us, “Should my spouse be my Power of Attorney?”

On one hand, it makes sense. You trust them and they know you. However, personal relationships can complicate decision-making. Emotions, stress and loyalty to others can cloud judgement.

Life also changes. For instance, the person you appoint may face their own health issues, financial stress or family pressures. They may no longer be able to act as intended. Their relationship with you or other family members might have even changed.

Indeed, family disagreements are among the most common sources of difficulty. Even where relationships are good, conflict can arise once decisions affect money or property. A Power of Attorney may face pressure from other relatives. They may be accused of favouritism or unfairness.

In Victoria, disputes can escalate, resulting in delays or challenges to the estate. When this happens, the stress and cost can take their toll.

In short, when Power of Attorney goes wrong, it can go very wrong indeed. These risks are common and often unplanned, and just because you cannot see them now does not mean they might not exist in the future.

An independent Power of Attorney removes many of the pressures we’ve just outlined. Their independence allows them to make objective decisions and remain true to your original wishes. They do not have to worry about managing family dynamics, and they have nothing to gain from the outcome. As a result, they can provide clear, lawful and consistent decision-making over time.

Importantly, an independent POA can also protect relationships by removing family members from difficult roles.

There are many different types of Powers of Attorney, each with responsibilities for specific areas of your life. They include:

• Financial Power of Attorney – they can manage your money, pay bills, handle property and more.
• Medical/Health Power of Attorney – they can make medical decisions for you if you are unable to do so.
• General Power of Attorney – they can make a wide range of decisions, but usually only while you are still able to make decisions yourself.
• Enduring/Durable Power of Attorney – this role continues even if you lose the ability to make decisions.

Can a Trustee be a Power of Attorney?

Yes, and State Trustees are particularly well-placed to represent all Victorians.

✓ We’re independent

✓ We’re the only government-backed organisation of our kind in Victoria, which makes us answerable and accountable

✓ We act in accordance with Victorian law

✓ We’ve been helping Victorians from all walks of life for over 85 years

✓ We’ve worked with thousands of Victorians across a number of specialist services

✓ We take the time to listen and truly understand your needs

✓ We ensure our decisions are based on your best interests and we retain proper oversight and record keeping

✓ We’re not one individual – our support continues even though circumstances change and years go by

Choosing State Trustees as your Power of Attorney in Victoria may be appropriate if you do not have someone suitable to appoint. It may also suit people with complex affairs or where family relationships are strained.

Many Victorians prefer an arrangement that removes pressure from loved ones, whilst others want confidence that decisions will remain consistent over time.

There is no single right answer; the right choice is the one that best protects your interests.

In Victoria, a Power of Attorney must be legally valid to operate as intended. This includes having decision-making capacity at the time and meeting formal requirements. Getting the arrangement right at the start reduces the risk of problems later. Again, this is where State Trustees Victoria can assist – we understand the legalities, requirements and processes and can ensure your document is legally valid.

If you are considering who should act as your Power of Attorney, you can talk to State Trustees. We can explain in more detail how we work in this role and the support we can provide.