It’s one of the most common and avoidable crises families face. A parent has a stroke, a fall or a rapid decline with dementia, and suddenly nobody can legally manage their bank accounts, speak to their aged care provider, or make decisions about their care. Sorting a few documents while a parent still has capacity prevents most of that. Here’s the plain-language guide to what each one does.
The Key Point: Capacity
Almost all of these arrangements have to be set up while the person can still understand and make the decision themselves. Once capacity is lost, it’s usually too late, and families may need to apply to a tribunal for a guardian or financial manager to be appointed, which is slower, more stressful and takes control out of the family’s hands.
That’s why the best time to have this conversation is before anything goes wrong.
Three Roles People Confuse
Power of Attorney
A power of attorney lets someone make financial and legal decisions on another person’s behalf, such as paying bills, managing bank accounts and dealing with property.
The type that matters for ageing parents is an enduring power of attorney, which keeps working if the person loses capacity. An ordinary power of attorney stops at exactly the moment it’s most needed. Enduring powers of attorney are made under state and territory law, so the forms, witnessing requirements and names differ depending on where you live.
Guardianship
A guardian makes personal and lifestyle decisions, such as health care, medical treatment and where someone lives, including whether they move into an aged care home.
In New South Wales this is called an enduring guardian, and it generally takes effect only once the person loses capacity. Other states handle it differently, sometimes combining financial and personal decisions in a single document. Many people also complete an advance care directive, which records their own wishes about future medical treatment.
Registered Supporter With My Aged Care
A registered supporter is different again. It lets a family member or friend talk to My Aged Care and providers, receive information, and help the person make decisions. It’s free and set up through My Aged Care.
The important distinction is that a registered supporter isn’t a substitute decision maker. It’s designed to support the person to make their own choices. For decisions when someone can no longer decide for themselves, the state-based legal documents are what count.
How to Get Started
Talk to your parent early, framing it as protecting their choices rather than taking them away. Look up your state’s official forms through the relevant public guardian, public trustee or attorney-general website. Get the documents signed and witnessed correctly, since mistakes can make them invalid, and a solicitor can help if the situation is complicated. Then register as a supporter with My Aged Care so you can deal with the aged care side straight away.
Keep copies somewhere the family can find them, and give copies to the GP and any aged care provider. A free Aged Care Specialist Officer can help with the My Aged Care side on 1800 227 475. General information is on My Aged Care.
The Bottom Line
An enduring power of attorney covers money and legal matters, a guardian covers health and lifestyle decisions, and a My Aged Care registered supporter helps your parent deal with the aged care system. The legal ones must be made while your parent still has capacity, under your state’s rules. Sort them before a crisis, keep copies handy, and you’ll avoid one of the hardest situations families face. This is general information, not legal advice.
Epik Wire covers aged care in plain language for older Australians and their families. Subscribe to our newsletter to stay informed.
