Powers of attorney: planning for a day you hope never comes

Wills & Estates16 July 20266 min read

Most people think of estate planning as what happens after they die. Just as important is what happens if you are alive but can no longer make decisions for yourself — after a stroke, a serious accident, or the progression of an illness. A power of attorney is the document that answers a simple but urgent question: if you cannot decide, who can, and within what limits?

The two kinds of decisions

Broadly, the law separates decisions about your finances and property from decisions about your health and lifestyle. Different documents cover each — a financial power of attorney for the former, and an appointment of a medical or personal decision-maker for the latter. You can appoint the same person to both roles or different people, and you can set conditions on what they may and may not do.

Why timing is everything

A power of attorney can only be made while you still have capacity. Once capacity is lost, the window has closed, and your family may be left applying to a tribunal to be appointed as your administrator or guardian — a slower, more public and more stressful process than signing a document over a cup of tea while you are well. The point of doing it early is precisely that you cannot know when it will be needed.

Choosing the right person

The person you appoint should be someone you trust completely, who is willing to act, and who will respect your wishes rather than their own preferences. It is worth talking to them beforehand so the role is not a surprise, and worth writing down the values and preferences you would want them to honour — particularly for medical decisions.

Keeping it current

Relationships and circumstances change. Review your appointments after major life events — a separation, a death, a move interstate or overseas — to make sure the right people still hold the roles and the documents remain valid where you live. This article is general information only and is not legal advice; the rules and document names vary by jurisdiction, so speak with a lawyer about arrangements suited to your circumstances.