Powers of Attorney: Who Decides When You Can’t
Powers of Attorney can mean many things to different people. At its most basic, a Power of Attorney allows someone to make decisions, sign documents or entering into agreements on behalf of another.
In Victoria, the main types of Powers of Attorney that one may need or otherwise come across are:
- General Power of Attorney;
- Enduring Power of Attorney (Financial and/or Personal Matters) ;
- Appointment of Medical Decision Maker (formerly Power of Attorney (Medical Treatment);
- Company Power of Attorney (which we will cover in depth at a later date).
General and Personal Matters:
General and Enduring Powers of Attorney are very similar in nature. Individuals can appoint another to make decisions, enter agreements such as Contracts of Sale, Mortgages and other legally binding documents or generally act as a representative of the individual.
The key difference between General and Enduring Powers of Attorney is that a general Power of Attorney will cease to be legally effective in the event that the person making the Power becomes ‘legally incapable’ to make decisions for themselves. Conversely, an Enduring Power of Attorney will continue to operate even if you lose mental capacity.
Appointment of Medical Decision Maker:
With the introduction of the Medical Treatment Planning and Decisions Act 2016, Medical Treatment Powers of Attorney have been replaced with an Appointment of Medical Decision Maker. This is largely the same as the former Power of Attorney (medical treatment), however there are a number of differences. Whereas it used to be possible for a number of medical power of attorney is to be appointed, the appointment of medical decision maker now requires that only a single primary decision-maker be appointed with a secondary decision-maker appointed in the event that the primary is unable to act or cannot be contacted.
Generally, we also recommend that anyone making an appointment of medical decision maker also complete an advanced care directive with their doctor. This will provide the decision-maker with some guidance on what may otherwise be traumatic circumstances.
We recommend that both an enduring power of attorney and an appointment of medical decision-maker be completed by clients over the age of 55, those who may be going into hospital or otherwise incapacitated. This provides a safety net to ensure that individuals affairs can be appropriately managed.
Please visit our Contact Us page or call our office on 03 9052 5101 to discuss the appropriate documents for you.