What Is a Power of Attorney?
A Power of Attorney (POA) is a legal document that authorises someone you trust — called your attorney — to make decisions on your behalf. Depending on the type, this could cover your finances, your property, your medical treatment, or all of the above.
The person setting up the Power of Attorney is called the principal, and your attorney can be a family member, close friend, or a professional such as a solicitor. The key consideration is trust — this person will have real authority over significant parts of your life, so choosing carefully matters.
In Victoria, there are two main types of Power of Attorney to understand.
Enduring Power of Attorney (Financial & Personal)
Under the Powers of Attorney Act 2014, an Enduring Power of Attorney continues to operate even if you lose mental capacity. This is what sets it apart from a general Power of Attorney, which becomes void the moment you can no longer make your own decisions.
An Enduring Power of Attorney can cover:
- Financial matters — paying bills, managing bank accounts, selling property
- Personal matters — where you live, the support services you receive
It does not cover medical treatment, which is handled separately under a different appointment (see below).
You can set conditions on what your attorney can and cannot do, appoint more than one attorney, and choose whether the Power of Attorney takes effect immediately or only upon losing capacity. It must be signed while you still have full mental capacity, in the presence of an authorised witness such as a solicitor.
Medical Treatment Decision Maker
Under the Medical Treatment Planning and Decisions Act 2016, you can formally appoint someone to make medical decisions on your behalf if you are ever unable to — due to illness, injury, a medical emergency, or cognitive decline.
Your appointed Medical Treatment Decision Maker can consent to or refuse treatment on your behalf, including decisions about surgery, medication, life-sustaining treatment, and palliative care. They are legally required to act in line with your known wishes, values, and preferences — which is why having an honest conversation with them well in advance is so important.
It is also worth knowing that a next of kin can override an advance care plan. Formally appointing a Medical Treatment Decision Maker ensures that the people you trust to make those hard decisions have the legal authority to do so if the time comes.
Why You Actually Need One
This is the question most people don't ask until it's too late.
If you lose capacity without these documents in place, your family may have no legal authority to act for you — even a spouse. Decisions about your finances, living arrangements, or medical care could fall to VCAT (Victorian Civil and Administrative Tribunal) or the State Trustees, rather than the people you would have chosen yourself.
Obtaining legal authority after the fact is a slow, expensive, and stressful process — often at an already difficult time for your loved ones.
This is not just something older Victorians need to consider. Accidents and sudden illness can happen at any age, which is why these documents are worth having in place well before you expect to need them.
How Purcell and Purcell Can Help
Setting up a Power of Attorney doesn't need to be complicated, but it does need to be done properly. Our team can guide you through the process — whether you are setting up an Enduring Power of Attorney, appointing a Medical Treatment Decision Maker, or both. For many clients, a Power of Attorney pairs naturally with a current Will — both are part of a complete estate plan. To see how powers of attorney fit within a broader succession plan, read our article: Succession Planning in Victoria: Wills, Trusts, and What Most People Miss.
We take the time to understand your situation, explain your options clearly, and make sure the documents reflect your wishes accurately. Call us on (03) 9741 3777 or book a consultation online.