Understanding Financial Powers of Attorney in Victoria

What a financial power of attorney does

A financial power of attorney authorises your chosen decision-maker, called your attorney, to handle matters such as:

• Managing bank accounts
• Paying bills and everyday expenses
• Dealing with Centrelink or the ATO
• Buying or selling property
• Managing investments or business interests

You can give your attorney broad powers or limit them to specific tasks.

When it is used

A financial power of attorney can be helpful in two main situations:

• Planned use Some people appoint an attorney simply for convenience. For example, if you travel regularly or have difficulty getting to appointments, your attorney can help manage routine financial matters while you remain fully capable of making your own decisions.

• If you become unable to make decisions You can choose for your financial power of attorney to start only if you lose decision‑making capacity, for example due to illness, accident or cognitive decline. This ensures that someone you trust is legally able to step in and manage your affairs without delay.

Importantly, you still retain your own decision‑making power for as long as you have capacity. Your attorney’s authority does not override your rights while you can make decisions for yourself.

Key things to consider before appointing an attorney

1. Who to appointYour attorney should be someone reliable, financially responsible, and genuinely committed to acting in your best interests. Many people appoint a spouse, adult child, or close friend; others prefer a professional, such as a trustee company.

Trust is essential - they will have access to your financial life.

2. The scope of their authority You control the extent of your attorney’s powers. Consider:

• Should their authority start immediately, or only if you lose capacity?
• Do you want them to manage all financial matters, or only specific tasks?
• Are there limits you want to place, for example requiring a second person’s approval for major decisions?

Clear instructions can help avoid misunderstandings later.

3. Responsibilities of an attorney Your attorney must:

• Act in your best interests
• Keep accurate records
• Keep your money separate from their own
• Avoid conflicts of interest unless expressly authorised
• Follow any conditions or instructions you include

The law holds attorneys to a high standard, and they can be held accountable if they misuse their authority.

Why it’s worth planning ahead

Making a financial power of attorney is a practical step that can save your family significant stress. Without one, loved ones may need to apply to VCAT for authority to manage your finances, an often slower and more involved process.

A well‑prepared document ensures that you stay in control: you choose who will act for you, how they may act, and when their authority begins.

Contact our team to arrange a consultation.