The Importance of Enduring Powers of Attorney and Guardianship

Life is unpredictable, and the unexpected can happen at any stage, leaving us incapacitated and unable to manage our affairs. Whether through illness or accident, the need for someone to make decisions on our behalf becomes crucial. In such instances, having a clear understanding of legal mechanisms, such as enduring powers of attorney, can make a significant difference.

Enduring powers of attorney can cover both financial and legal decision, as well as lifestyle (guardianship) decisions.

One common misconception is that joint property owners automatically have the authority to sign on behalf of a co-owner, even if they are spouses. However, the reality is different. In situations where one person becomes incapacitated, a joint owner cannot automatically assume control without the proper legal documentation.

This is where an enduring power of attorney comes into play. To sign on behalf of another person, especially in financial or legal matters, an enduring power of attorney is essential. It grants an individual the legal authority to act on behalf of someone else, ensuring that decisions can be made seamlessly even in times of incapacity.

When it comes to lifestyle decisions, a guardianship power is required and can be catered for in the same document. Similar to the powers a parent has over a child, a guardian can make decisions about where a person lives, what clothes they wear, who can visit them, and even what work they can do. This becomes particularly crucial for vulnerable individuals facing illness or brain injury, who may require a someone to make lifestyle decisions on their behalf.

If incapacity arises and a person has not planned for this by making an enduring power of attorney, an application must be made to for Administration through the Victorian Civil and Administrative Tribunal (VCAT). This process involves the appointment of an administrator to make financial and legal decisions and or a guardian to make lifestyle decisions for the incapacitated person. While this is a solution, it is a process to go through and an obstacle to overcome at what can already be a stressful time.

In conclusion, life's uncertainties make it essential to plan for the unexpected. An enduring power of attorney covering legal, financial and guardianship matters provides the necessary legal framework to ensure that people you have chosen can make decisions that are in your best interest when you are unable to make them yourself. Being informed about these options empowers individuals and their families to navigate challenging situations with clarity and confidence.

Make an appointment to chat about your requirements for enduring powers of attorney.