Reika Yoshikawa
Trainee Solicitor
An Enduring Power of Attorney document allows someone (called a "Principal") to give legal authority to an "attorney" to make decisions on their behalf.
Power of Attorney vs Will — Key Difference
Will
Applies after you die
Power of Attorney
Applies while you are still living
What an Attorney Can Decide
An attorney has the crucial task of making decisions on behalf of the principal regarding:
- Financial matters — such as paying bills, managing real estate transactions, and funds for the principal's personal expenses
- Personal matters — such as arranging various services, care, and living arrangements
Your Responsibilities as an Attorney
Attorneys have important responsibilities, including:
- Respecting the principal's wishes to the largest extent possible
- Encouraging the principal's involvement in decision-making
- Making decisions that promote the personal and social wellbeing of the principal
- Recognising the principal's existing relationships, religion, beliefs, culture, and privacy
- Acting honestly, diligently, in good faith and with due care
- Maintaining accurate records of all transactions and activities
- Keeping the principal's property separate from their own
- Avoiding using their position for personal profit
- Preventing conflicts of interest between their duties and personal affairs
What an Attorney Cannot Do
The attorney is NOT allowed to
- Make medical decisions unless appointed as a medical decision-maker
- Vote on behalf of the principal
- Make decisions about the welfare of the principal's children
- Create or revoke a Will or Power of Attorney
- Manage the principal's estate after their death
The Consequences of Getting It Wrong
In Victoria, some attorneys have gotten into serious trouble for mishandling funds or improperly recording transactions. Failing to fulfil their duties could lead to orders to compensate the principal. Misusing financial authority for personal benefit might even result in criminal charges.
"It is crucial for attorneys to understand and comply with their duties and obligations — the consequences of getting it wrong can be severe."
Kingston Lawyers are experts in Powers of Attorney and can advise you on your rights and obligations, whether you are a principal or an attorney.