When it comes to planning for the future, it’s common to assume that appointing a Power of Attorney will cover everything. However, regulations vary between states and in NSW, additional documents are required. To ensure your financial and personal wishes are respected, you will need two separate documents: a Power of Attorney and a Guardianship / Enduring Guardian appointment.
But what’s the difference between a Power of Attorney and a Guardian, and why is having both such a key part of complete estate planning?
Power of Attorney: Managing Financial and Legal Decisions
A Power of Attorney gives someone you trust the authority to make financial and legal decisions on your behalf.
This could include:
• Paying bills or managing your bank accounts
• Buying or selling property
• Signing legal documents
You can set the Power of Attorney to start immediately or only take effect if you lose the capacity to make decisions yourself.
Importantly, the scope of a Power of Attorney is limited to financial and legal matters, and does not cover health, lifestyle or personal care decisions.
Enduring Guardian: Making Health and Lifestyle Decisions
An Enduring Guardian is someone you appoint to make personal, health and lifestyle decisions if you become unable to do so.
This could involve decisions like:
• Where you live and who provides your care
• What medical treatment you receive
• Consenting to or refusing certain healthcare options
Your Guardian steps in only if you lose capacity – for example, after an accident or due to illness. They can’t make financial decisions, just as your Power of Attorney can’t make healthcare ones.
Both roles together ensure every aspect of your life is looked after by people you trust, from your bank accounts to your wellbeing.
Guardianship vs Power of Attorney: Why You Need Both in NSW
In other states, these powers might be combined into one document, but in NSW, Power of Attorney and Enduring Guardian appointments are legally separate.
Without these documents in place, your loved ones may need to apply to the NSW Civil and Administrative Tribunal (NCAT) or the courts to be appointed as your decision-maker – a process that can be stressful, time-consuming and costly.
By planning ahead, you keep control over who makes decisions for you and how those decisions are made.
Choosing the Right People
Both your Attorney and Guardian should be people you deeply trust. They don’t have to be the same person, but they should be reliable, responsible and understand your values.
For example:
• You might appoint your adult son or daughter as your Power of Attorney to manage your finances, and
• A close friend or sibling as your Enduring Guardian, as they know your personal and medical preferences best.
There’s no one correct approach – it’s about considering what works best for you and your family.
Putting the Right Protections in Place
Estate planning isn’t just about wills. It’s about protecting your future while you’re still here. Having both a Power of Attorney and an Enduring Guardian means your affairs are covered no matter what happens.
At FMS Group, we help clients put these protections in place as part of a complete estate planning and succession strategy. We’ll guide you through who to appoint, how the documents work, and how to make sure everything aligns with your broader financial and family goals.
Take Control of Your Future
Don’t leave important decisions to chance. Book a free consultation with our estate planning team to make sure your Power of Attorney and Guardian appointments are set up correctly and are legally sound.
Call 1300 982 499 or visit the FMS Group offices on the Central Coast and Sydney’s North Shore to get started today.
Disclaimer: This blog is general in nature and does not constitute personal financial advice. Please consult a qualified financial planner before making decisions based on your individual circumstances.