Life doesn’t always go to plan. Illness, injury, or age-related changes can make it hard, or even impossible, to manage your finances or make important decisions. That’s why planning matters.
Putting a Power of Attorney (POA) or Enduring Power of Attorney (EPOA) in place gives you peace of mind knowing someone you trust can step in when you need them most. It’s about staying in control, reducing stress for your loved ones, and ensuring your wishes are respected.
We understand it’s hard to imagine a possible future where you can’t make decisions for yourself. However, without a plan, your family may face lengthy legal processes and emotional stress when trying to establish support and management of your affairs. By setting up a POA or EPOA, you decide who manages your affairs, rather than leaving it to the courts. It’s a simple step that can save time, money, and heartache later.
In this article we break down what a Power of Attorney is, why they matter and how to get started.
Power of Attorney vs Enduring Power of Attorney
A Power of Attorney is a legal document that allows you to appoint someone you trust to manage your financial affairs. There are two main types, and they are only valid while you are still alive:
A general Power of Attorney (POA) is useful for short-term situations, like if you’re overseas or in hospital. It only applies while you have mental capacity and ends if you lose the ability to make decisions.
An Enduring Power of Attorney (EPOA), on the other hand, continues even if you lose mental capacity. It can cover property, finances, and (if you choose) personal care and welfare. You decide when it starts; if immediately or only if you lose capacity.
| Feature | General POA | Enduring POA |
|---|---|---|
| Valid while mentally capable | ✅ | ✅ |
| Continues after capacity loss | ❌ | ✅ |
| Covers personal care decisions | ❌ | ✅ (if included) |
| Ends at death | ✅ | ✅ |
If you lose capacity without a POA or an EPOA, your family may need to apply to the Family Court to issue a Family Management Order (FMO) appointing someone to act on your behalf. This process can be costly, time-consuming, and stressful. Sometimes, with the outcome of the Court appointing someone you wouldn’t have chosen. Planning ahead avoids this uncertainty and gives you control over your future.
Care Plan and Lifestyle
On top of financial arrangements, it’s also important to think about your health and lifestyle decisions as part of future planning. Here are a few things you can do:
Appointing an Enduring Guardian ensures someone you trust can make those choices for you – if you lose capacity. However, different from Enduring Power of Attorney, an Enduring Guardian cannot make financial decisions.
An Advance Care Plan can outline the type of medical care you want if you can’t speak for yourself. It’s recommended you write a guide in collaboration with your trusted General Practitioner (GP) and share with it your Enduring Guardian and/or loved ones.
A Will guarantees your assets are distributed according to your wishes after you pass away. In the Will, you appoint the Executor which is the person who will manage the distribution of your assets after death as the Power of Attorney/Enduring Power of Attorney/Family Management Order are not valid once you pass away.
Together, these documents create a complete plan that protects you and supports your loved ones.
How to choose an Attorney or Executor
Giving others access to your finances carries responsibility and risk, so it’s essential to select someone you trust completely. Life changes, and so should your arrangements, review them regularly to make sure they still reflect your wishes. Keep in mind, an attorney has legal responsibilities and must act in your best interest while keeping your affairs private.
If you’re unsure who to appoint, independent advice is available through your State or Territory Public Trustee. In NSW, that’s the NSW Trustee & Guardian, and similar services exist in every state. They can guide you through the process and help you make informed choices.
• QLD: Queensland Public Guardian
• NSW: NSW Trustee & Guardian
• VIC: Office of the Public Advocate
• ACT: Public Trustee & Guardian
• SA, WA, TAS, NT: State-based Public Guardians
How to take action
We’ve prepared a quick checklist to help you navigate these important steps.
Summary Checklist
• Choose who will manage your affairs if you can’t.
• Decide between general POA, Enduring POA, or both.
• Consider other planning documents (Will, Guardian, Advance Care Plan).
• Seek professional legal and financial advice.
• Notify your bank once everything is set up.
The best place to start is by thinking about who you trust to manage your affairs if you can’t. Once everything is in place, let your bank know. These simple steps can make a world of difference for you and your loved ones, giving you peace of mind that your future is secure.
Southern Cross Credit Union Ltd 82 087 650 682 AFSL and Australian Credit Licence 241000. Any advice is general advice only and does not take into account your objectives, financial position or needs (your ‘circumstances’).
