Protecting financial wellbeing in later life: The growing importance of Enduring Powers of Attorney

For professionals working across Victoria’s aged care sector, supporting older people through major life changes is part of everyday practice. Alongside care planning and health support, there is another conversation that can have lasting impact: protecting a person’s financial security as they age.

Research from State Trustees highlights just how strongly older Victorians value their financial independence. After decades spent building savings, property and superannuation, most want certainty that their assets will be protected if their health or decision making capacity changes. Establishing an Enduring Power of Attorney for financial matters is one of the most practical steps they can take.

The role of an Enduring Power of Attorney

An Enduring Power of Attorney for financial matters enables someone to appoint a trusted individual or organisation to manage financial and property decisions if they are no longer able to do so themselves. This may occur due to illness, injury or cognitive decline.

The key point to stress is simple.

The document must be completed while the person still has legal capacity.

If capacity is lost before an Enduring Power of Attorney is in place, the opportunity to choose who will manage those affairs is gone. Families are then often left navigating more complex and stressful legal pathways.

Aged care professionals are frequently in a unique position to observe early signs of vulnerability. Encouraging clients to consider a formal arrangement can significantly reduce the risk of financial mismanagement or exploitation and ensure decisions are made by someone they genuinely trust.

Selecting the right Attorney

Choosing an Attorney is a significant decision. The appointed person or organisation will have authority over important financial matters, so trust and transparency are essential.

People may appoint:

A trusted individual or adviser
This could include a close family member, a friend or a solicitor who understands their wishes and financial situation.

State Trustees
Appointing State Trustees as an Enduring Power of Attorney for financial matters offers a professional and impartial alternative. This can be particularly helpful for individuals who do not have suitable family members, have complicated relationships, or prefer not to place responsibility on loved ones.

Engaging a professional Attorney can provide reassurance that financial decisions will be made independently, with accountability and in accordance with the law.

Services available through State Trustees

State Trustees can assist with preparing several important documents:

Enduring Power of Attorney for financial matters
Allows a nominated person or organisation to manage property and financial affairs.

Enduring Power of Attorney for personal matters
Enables a trusted individual to make certain personal decisions, such as those relating to accommodation or care.
State Trustees cannot be appointed as a Personal Enduring Power of Attorney.

Appointment of a Medical Treatment Decision Maker
Allows a person to nominate someone to make medical treatment decisions if they are unable to do so.
State Trustees cannot act as a Medical Treatment Decision Maker.

With detailed knowledge of Victorian legislation and experience in financial management, State Trustees offers a structured and accountable option for older people seeking certainty.

Key considerations before appointing an Attorney

Before completing an Enduring Power of Attorney, clients should carefully consider the full scope of their financial life. This may include:

• Property ownership and transactions
• Bank accounts and investments
• Regular household and living expenses
• Utility and service payments
• Centrelink or other government entitlements
• Superannuation and retirement income streams
• Gifts to family members or charities
• Access to safe deposit facilities

They must also determine when the power will commence. It can begin immediately, on a nominated date, or only if and when decision making capacity is lost.

Without a valid appointment, there is no guarantee that financial control will rest with someone the person would have chosen.

Understanding capacity

To validly create an Enduring Power of Attorney, a person must understand:

• Any conditions or limits they wish to include
• When and how the authority may be used
• That the appointment continues even if they lose capacity
• That they may revoke the document while they still have capacity
• That once capacity is lost, they cannot supervise the Attorney’s decisions

These are complex issues. Clear explanations from aged care professionals can help clients and families better grasp the implications and make informed choices.

Practical support for your clients

State Trustees recognises that Powers of Attorney can feel overwhelming. Their specialists offer:

• Step by step assistance with document preparation
• Independent and balanced guidance
• Consideration of risks clients may not have identified
• Support to ensure financial arrangements align with long term goals

For many older Victorians, putting these protections in place provides genuine peace of mind.

If you are supporting clients who may benefit from formalising their arrangements, encourage them to seek advice and act early.

To discuss referrals or learn more, contact the Relationship Management team at [email protected] or call 1300 138 672.

Further information is available at www.statetrustees.com.au.