Your Responsibilities as a Power of Attorney in Victoria

If you’ve been appointed as a power of attorney in Victoria, you’ve been entrusted with a significant legal role. Whether you're managing someone's financial affairs, personal decisions, or both, your actions must comply with the Powers of Attorney Act 2014 (Vic). Knowing what is expected of you is crucial—not only to protect the person who appointed you (the principal) but also to ensure you are acting lawfully and responsibly.

Your Primary Obligation: Act in the Principal’s Best Interests

As an attorney, your decisions must always reflect the wishes and best interests of the principal. Your role is not to do what you think is best, but to act according to what the principal would want if they were able to make decisions themselves. Acting in their best interests also includes avoiding situations where your own interests could conflict with theirs.

Be Honest, Careful, and Act in Good Faith

You are legally required to exercise your powers honestly, with care, and in good faith. This means taking your responsibilities seriously, staying within the limits of the authority you’ve been given, and avoiding any conduct that could be seen as self-serving or improper.

Keep Detailed Financial Records

One of the most important duties—especially under a financial power of attorney—is maintaining clear and accurate records. From our experience at Kenney Legal, this is a duty that can cause issues following the death of the principal. This duty includes:

• Recording all transactions you carry out on the principal’s behalf;

• Keeping invoices, receipts, and bank records;

• Ensuring the principal’s money is not mixed with your own;

• Being prepared to account for all financial decisions.

Failing to keep proper records can raise concerns about how funds were used and may result in legal or financial consequences for the attorney, and in some circumstances requiring the attorney to pay money back into a deceased estate.

Involve the Principal Where Possible

If the principal still has decision-making capacity, it’s important to involve them as much as possible. Your role is to support, not replace, their ability to make decisions. Respecting their independence is part of acting in their best interests.

Limitations on Gifts and Personal Benefits

You generally cannot give gifts or make donations using the principal’s funds unless this is specifically permitted in the power of attorney document. Even then, the gift must be something the principal would likely have made themselves and be appropriate considering their financial situation.

Know When Your Authority Ends

Your authority as attorney ends if:

• The principal cancels the appointment;

• You choose to resign;

• The principal passes away;

• You lose legal capacity (unless the document says otherwise).

At that point, an executor or administrator takes over responsibility for the principal’s affairs.

Final Word

Being appointed as an attorney is not a casual favour—it’s a legal role that comes with strict obligations and responsibilities. If you’re uncertain about what you can or cannot do, it’s wise to obtain legal advice. This ensures you are meeting your duties and protecting both your own interests and those of the principal.

Please note, this article is general in nature and does not take into account your personal situation or circumstances. For further information please contact Kenney Legal at info@kenneylegal.com.au or contact us via our social media networks.