When planning for your future, you’ll likely focus on writing your will – but have you considered who would make important decisions about your finances and healthcare if you couldn’t make them yourself? Power of attorney and enduring guardianship documents are essential estate planning tools that protect your interests when life throws unexpected challenges your way.
At Complete Legal, we help people navigate life’s milestones with clarity and confidence. These documents may seem complex, but understanding your options helps ensure your wishes are respected and your loved ones have clear authority to act on your behalf when needed.
What’s the Difference Between Power of Attorney and Enduring Guardianship?
Power of Attorney: Managing Your Financial Affairs
A power of attorney is a legal document that appoints someone to handle your financial and business matters when you can’t do so yourself. This includes situations where you become incapacitated due to illness such as Alzheimer’s, dementia, or other conditions affecting your decision-making capacity.
Your appointed attorney can:
- Sign documents on your behalf
- Operate your bank accounts
- Buy and sell real estate
- Enter into contracts
- Handle various other financial functions
Enduring Guardianship: Managing Your Health and Lifestyle Decisions
An enduring guardianship covers your health and lifestyle needs. Your appointed enduring guardian has authority to make healthcare and lifestyle decisions when you’ve lost the capacity to do so yourself.
This can include:
- Major decisions like transitioning into aged care
- Day-to-day matters such as arranging routine dental care
- Approving medical treatments and health-related services
Choosing the Right Person for These Important Roles
These documents grant significant power over your affairs, so choosing the right person requires careful consideration. You need someone you trust completely, but trust alone isn’t enough – they also need to be equipped for the specific responsibilities involved.
Consider Your Close Family First
Most people choose their spouse as their first option, with adult children as alternatives or joint appointees. These are often the most trusted people in your life, and they have a natural interest in your wellbeing.
You Can Split the Roles
Remember, you don’t have to appoint the same person for both roles. If you have two children where one is more skilled with business and financial matters while the other excels at healthcare decisions, consider splitting the appointments accordingly.
Alternatively, you might appoint them jointly so they can support each other in making decisions and provide a system of checks and balances.
Look Beyond Immediate Family When Necessary
If your spouse or children aren’t suitable for these roles, consider other trusted people in your life. A reliable extended family member or close friend who understands your values and wishes might be the right choice.
What Happens Without These Documents?
If you don’t have power of attorney and enduring guardianship documents in place, or if you lose capacity before making these appointments, the NSW Trustee & Guardian will typically step in to manage your affairs. While they provide professional services, having someone you know and trust making these decisions is usually preferable for both you and your family.
Taking the Next Step
Power of attorney and enduring guardianship documents are powerful tools that provide peace of mind for you and clear authority for your loved ones during difficult times. The key is choosing the right people and ensuring your documents are properly prepared and legally valid.
Ready to protect your future and give your family clear guidance? Contact Complete Legal today for a consultation about how power of attorney and enduring guardianship documents work, and let us help you make informed decisions about these important estate planning tools.
