Power of Attorney guide – everything Victorians need to know

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

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.

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

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.

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.

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.

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

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).

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.