Planning for the future isn’t just about saving money or writing a will. It’s about making sure someone you trust can act for you if you can’t. That’s where a power of attorney comes in. Whether you’re travelling, facing illness or want peace of mind, setting up a power of attorney is a smart move.
Before diving in, remember: a power of attorney works hand-in-hand with wills and estate planning, which cover more than just what happens after you’re gone — they protect your interests while you’re alive. You can explore the full scope of wills and estate planning to make better decisions for your situation.
Let’s break it down step-by-step so you can take control with confidence.
Step 1: Understand What a Power of Attorney Is
Before filling out any forms, know what you’re signing up for. A power of attorney (POA) is a legal document. It lets someone else act for you — legally. That person is called your “attorney”, but they don’t need to be a lawyer. They could be your partner, child or close mate. You’re giving them the power to handle important matters on your behalf, so the choice should be someone you trust completely.
There are two main types of POAs in Australia:
General Power of Attorney: Only works while you can still make decisions. Great for short-term needs like travel. For example, if you’re overseas but need someone to sign documents or manage property for you, this option gives them authority during that time.
Enduring Power of Attorney: Kicks in if you lose the capacity to decide for yourself. This one stays valid even if you become ill or injured. That’s why it’s a critical part of future planning—especially as people live longer and face higher risks of medical issues that affect decision-making.
POAs cover financial and legal matters like:
- Paying bills
- Handling property
- Accessing bank accounts
- Managing business or investments
You can choose to give your attorney full control, or you can limit their powers to specific areas. You can also set conditions—for example, their authority might only begin once a doctor confirms you’ve lost capacity.
In some states, like NSW, you’ll also need an Enduring Guardian for health and lifestyle decisions. That’s a separate form. It covers choices like where you live, what treatment you get and who makes medical calls when you can’t.
The key thing? You stay in control until you can’t act. Only then does the POA take over. The person you pick must act in your best interest. Misusing this role can have serious legal consequences, so it’s not a job to take lightly.
For a full breakdown of how it works legally, this explanation of power of attorney explained in clear legal terms outlines what to expect from start to finish.
Step 2: Know When and Why to Use It
So, when do people actually need a POA? Here are some real-world triggers:
- You’re heading overseas for work and need someone to handle your bills.
- You’re ageing and want someone ready in case of dementia or stroke.
- You’re going into surgery and want someone to sign documents while you recover.
These aren’t just hypotheticals—they’re common, everyday situations where a POA can make life easier and avoid long-term headaches. Even younger people are starting to see the value in setting one up, especially if they travel often or own property. It’s not just about being elderly. It’s about being prepared.
The goal is to plan before problems happen. If you wait until you’re already unwell, it may be too late — and the courts might step in. Once a person loses mental capacity, they can no longer make a POA. That means your loved ones would have to apply to a tribunal or court to make decisions for you. This process can take time, cost money and may result in someone you wouldn’t have chosen being appointed to manage your affairs.
Let’s take the case of George, a retired builder from Brisbane. At 72, he set up an enduring POA naming his daughter Kate. A year later, he had a bad fall. While in hospital with memory issues, Kate was able to pay his mortgage, deal with Medicare and keep his rental property running. No legal fights, no stress. She had the authority she needed because George made the decision early.
Without a POA, Kate would’ve needed court approval. That can take months and cost thousands. That’s why timing matters. A little preparation can save your family from legal confusion and financial stress down the line.
There’s a common mix-up between wills and POAs. It’s important to understand the difference between wills and enduring powers of attorney, especially when planning for both your present and your future. Each document serves a different role—and you need both to stay fully protected.
Step 3: Choose the Right Person
This step is the most personal — and the most important. Picking the wrong person can mess up everything. So, how do you choose? It’s not just about who you’re closest to. It’s about who can handle responsibility when things get tough. This person may need to make financial decisions, talk to banks, deal with paperwork and act quickly in stressful moments. That’s a big ask.
Think about:
- Trust: Pick someone honest and calm under pressure. They should always put your interests first. You need someone who won’t take shortcuts or let emotions get in the way.
- Skill: They should understand money, or be smart enough to ask for help. It doesn’t mean they need to be an accountant—but they do need common sense and confidence in handling tasks.
- Location: Local is easier. They may need to sign or attend things in person. Some banks and legal processes still require face-to-face meetings. Having someone nearby can speed things up.
- Willingness: Always ask them first. Never surprise someone with this role. Some people feel overwhelmed by the responsibility, especially if they’re already dealing with their own issues.
You can choose more than one person. If you do, decide how they’ll act:
- Jointly: All must agree. Safer, but slower. It adds a layer of protection, especially if you want checks and balances.
- Severally: Each can act alone. Faster, but riskier. Works best if you trust both people equally and want to keep things moving.
And yes, you can set limits. For example, your POA might only handle property, not medical care. Or you can make it start on a certain date. You can also restrict it to specific tasks or transactions.
You’re giving someone serious power, so it’s smart to check in now and then. Whether your relationship changes or your needs shift, understanding how often you should review your power of attorney helps you stay protected over time. A regular review ensures your attorney is still the right fit and your plan still works for your life.
Step 4: Fill Out the Right Forms and Get It Witnessed
Now comes the paperwork. Each state in Australia has its own forms. While the core idea is the same everywhere, the layout and requirements may differ slightly. That’s why it’s important to follow your state’s process, or you risk filling out the wrong form or missing a key detail.
Here’s the general flow:
- Get the correct form: Go to your state’s government website or ask your lawyer. Some forms are available for free online, but it’s best to check that they’re the most current version. Outdated forms can be rejected or cause delays.
- Fill in your details: Name, address and who you’re appointing. Be precise with spelling and contact info. Small mistakes can lead to confusion or rejection.
- Set any limits: When it starts, what it covers, if it ends at a certain time. You can limit your attorney’s powers to certain financial matters or set it to only take effect if you lose mental capacity.
- Sign the form: In front of an authorised witness. This step is critical. If the form isn’t signed properly, the POA may not be accepted.
- Have the attorney sign too: They accept the role, also in front of a witness. This confirms they understand their duties and are willing to act when needed.
In NSW, for example, your witness must be a lawyer, JP or a court registrar. They check that you understand what you’re signing. They’ll also ensure the form is filled out correctly and that you’re not being pressured.
Don’t file the forms away and forget about them. Some institutions, like banks, want certified copies. If land or property is involved, you might need to register the POA with the Land Registry. Some states charge fees for this, and others may have extra forms for property transactions.
Digital forms are growing in popularity, but physical signatures and face-to-face witnessing still apply in most places. Your best move? Ask someone qualified to help you get it right.
As you’re choosing who to trust, these tips for choosing the right person as your attorney can help guide your decision. This ensures you pick someone capable, reliable and legally valid for the role.
Step 5: Use, Monitor and Update as Needed
Once your POA is set, your job isn’t done. You need to keep an eye on it — and your attorney’s actions. That means:
- Ask for regular updates
- Set clear instructions
- Keep a copy of receipts and records
Your POA can step in at any time, depending on how it’s written. But make sure you stay looped in while you still have capacity.
Major life changes are your signal to review the document:
- Your attorney moves away
- You change your mind
- You sell property or assets
- Your health changes
You can cancel your POA by writing a revocation letter and notifying your attorney and anyone else using the document. Just make sure you still have legal capacity when you do it.
Real-life problems often pop up from outdated or forgotten POAs. Maria, for example, kept her brother listed as attorney even after he moved to the US. When she needed help urgently, he was unreachable. That’s why regular updates are key.
Without proper planning, families can fall into chaos. The mistakes that arise from poor estate planning decisions show just how damaging a neglected POA can be.
FAQs: Your Top Power of Attorney Questions Answered
1. Can I have more than one power of attorney?
Yes, you can. In fact, appointing more than one attorney can be a smart way to build in safety and flexibility. You can choose two or more people to act either jointly (where they must agree on all decisions) or severally (where each can act independently). There’s also a hybrid option — for example, you might allow them to act separately for everyday matters like paying bills but require both to agree on bigger things, like selling property.
Choosing more than one person adds checks and balances. It can protect you from one person making poor decisions or abusing their power. But it only works if the people you choose trust each other and can work together. If there’s tension, indecision or conflict between them, it can delay actions and cause unnecessary stress.
It’s also important to clearly state in the POA how decisions should be made. If it’s not spelled out, banks and government bodies may reject the document or cause delays. Always write detailed instructions and consider talking with a lawyer to help get the wording right. For smooth execution later, clarity now is key. A good structure today avoids confusion tomorrow.
2. What happens if my attorney dies or becomes unfit to act?
If your appointed attorney dies, loses capacity or becomes legally unfit to act — and you haven’t named a backup — your power of attorney stops working. That can leave you vulnerable at the worst possible time. No one can step in to manage your affairs unless you have legal capacity to create a new document. If not, the only option is for someone to apply to a state tribunal or court to be appointed as your financial manager or guardian, which can take months and be stressful for your loved ones.
That’s why it’s always best to name an alternate or substitute attorney when you first set up your POA. This person only steps in if your first choice can’t or won’t act. It’s like having a safety net that keeps things running even if life throws you a curveball.
Make sure you keep your POA up to date. If your original attorney moves overseas, becomes ill, or loses your trust, you should review and update the document. Keep open communication with everyone involved so they understand their role and responsibilities. Planning ahead now means you’ll avoid court processes later — and keep control in your hands even if you can’t speak for yourself.
3. Does a power of attorney give someone the right to change my will?
No, a power of attorney does not give anyone the right to change your will under any circumstances. A POA is a document that lets someone handle your affairs while you are alive. That means managing finances, paying bills, signing documents, or handling property — but not deciding what happens to your estate after your death.
Your will is a separate legal tool. It outlines how your assets should be shared after you pass away, and only you — the person making the will — can change or revoke it, as long as you still have the mental capacity. Even if your attorney is acting on your behalf, they cannot draft, change, or revoke your will. If they attempt to do so, that act is considered illegal and can lead to serious legal consequences, including criminal charges.
This is why it’s important to ensure your POA and your will don’t contradict each other. While they serve different purposes, they should still align. For example, if your attorney sells a property listed in your will, it may affect your estate plans. Review both documents together with a legal expert to make sure everything is consistent and that your wishes are fully protected.
4. How much does it cost to set up a power of attorney in Australia?
Setting up a power of attorney in Australia can be affordable, especially if you use the government-issued forms available in your state or territory. These forms are free to download and complete yourself. If you choose this option, your only expense might be paying a witness — often a Justice of the Peace, solicitor or notary — which can cost anywhere from $50 to $150 depending on where you live.
But going the DIY route has risks. If the document is filled out incorrectly, or if it’s missing important legal clauses, your POA might be rejected by banks or government agencies. Worse, it could fail when it’s most needed. For more peace of mind, many people choose to get professional legal advice. A lawyer will make sure the form is valid, tailored to your needs, and legally enforceable. Legal fees for this service typically range from $300 to $1,000. That often includes drafting the POA, reviewing your estate plan, and sometimes preparing a will or medical directive too.
In short, a POA can be cheap to set up, but mistakes can be costly later. It’s worth investing in a proper setup — especially if you have property, business interests, or complex family situations.
5. Is a power of attorney valid interstate or overseas?
In Australia, each state and territory has its own version of the power of attorney form. While most states recognise each other’s POAs, the rules can vary when it comes to using the document in practice. For example, if your POA was created in Victoria and you move to Queensland, your bank might accept it, but a government body might ask you to re-certify it or complete a local form. Some financial institutions and service providers prefer documents that match their own state’s requirements.
To avoid issues, it’s a good idea to update your POA when you move interstate. This helps prevent delays when someone needs to act on your behalf, especially in urgent situations. Having a local form that meets current state rules keeps things simple.
If you want to use your POA overseas, it gets more complex. Some countries may accept your Australian POA if it’s notarised, translated or recognised through a local legal process. Others won’t accept it at all. If you have assets, property or business interests overseas, it’s often best to create a second POA in that country with the help of a local lawyer. That ensures your affairs are covered both at home and abroad.
Take Charge of Your Future with One Smart Decision
Life is unpredictable. One fall, one diagnosis or one long trip can change everything. Having a power of attorney in place means your bills get paid, your property is safe and your wishes are respected. It’s one of the most practical things you can do today to protect your future.
Don’t leave it to chance or let courts decide what happens. Act while you can. Talk with loved ones. Choose someone you trust. And if you need help, talk to a legal expert.
Need help making the right legal move? Visit Ignify Legal and take the first step to protecting what matters most.
Please call us today at (02) 9413 4708 or submit an online enquiry.
