Power of Attorney – managing your banking if you lose capacity

A Power of Attorney is a legal document registered with the bank that allows you to appoint someone you trust to act on your behalf. There are two main types:

General Power of Attorney: Allows your nominated attorney/s to temporarily manage your affairs – for example, if you’re travelling, injured or need short-term support. This type is only valid while you have the capacity to make your own decisions.
Enduring Power of Attorney (EPOA): Allows your nominated attorney/s to manage your financial and legal affairs on a longer-term basis, including if you lose capacity to make decisions. This authority applies during your lifetime and continues even if you lose the capacity to make decisions, and remains in place until you pass away.

Find out how to set up an Enduring Power of Attorney

When a Power of Attorney is in place, you'll still have full access to your accounts while you have capacity. You can also choose to restrict the level of authority your attorney has to certain decisions or transactions. This must be clearly documented.

Note: If you hold a General Power of Attorney (not an Enduring Power of Attorney), this will be set up as an Authority to Operate. An Authority to Operate is only valid while the account holder has capacity to make their own decisions.

Learn more about an Authority to Operate

Why an Enduring Power of Attorney is important

Appointing an Enduring Power of Attorney is an important step in planning for the future. It can provide peace of mind, help protect your financial interests, and ensure the right support is in place if you’re unable to manage your finances yourself. Some of the benefits include:

Protecting your interests

If you lose capacity due to illness or age, having an Enduring Power of Attorney in place allows your attorney to make decisions on your behalf in line with your wishes.

Avoiding guardianship arrangements

Without an Enduring Power of Attorney, a court may appoint an administrator to make decisions for you – a process that can be time-consuming, costly, and may not reflect your preferences.

Keeping things running smoothly

If you’re unable to manage your affairs due to illness or loss of capacity, your attorney can continue managing important matters without interruption, helping provide peace of mind.

When it's commonly used

An Enduring Power of Attorney may be suitable if you’re planning ahead and want long-term arrangements in place, particularly if:

You’re wanting to plan for the future and safeguard your finances as you age
You have a family member showing signs of needing extra care
You want formal arrangements in place if you become seriously ill

While most attorneys act appropriately, it’s important to understand how an Enduring Power of Attorney works and the responsibilities and risks involved before putting one in place.

What are the benefits?

Provides peace of mind that your financial interests are protected if you become very ill or lose capacity to make decisions.
Gives someone you trust clear legal authority to manage your financial affairs.
Can make longer-term changes – such as moving into care – easier to manage, and can reduce the need for guardianship arrangements.

Things to consider

Appointing someone to manage your finances is a big decision and requires a high level of trust.
An attorney may not always act in your best interests or understand their responsibilities, which can impact how your money is managed.
Conflicts of interest or misuse of authority can occur, particularly where decisions may benefit the attorney or their family.

Who can you appoint as your attorney?

Your attorney can be anyone over 18 years of age that you trust to make decisions on your behalf, such as a family member or close friend. It does not need to be a lawyer.

Because an attorney may have significant control over your finances, it’s important to choose someone you trust completely and who will always act in your best interests.

You can appoint more than one attorney. If you do, you’ll need to decide whether they act:

Jointly – all attorneys must agree to decisions and sign documents together.
Jointly and severally – attorneys can make decisions together or independently of each other.

Before you appoint an attorney

An Enduring Power of Attorney is a powerful legal arrangement that can give another person significant control over your finances, so we strongly recommend seeking independent legal advice before appointing one.

While most attorneys act appropriately, there has been an increase in cases of financial abuse and misuse of Power of Attorney arrangements. Independent legal advice can help ensure the arrangement reflects your best interests.

Learn more about financial abuse

Responsibilities of an attorney

Your nominated attorney must always act in your best interests and meet their legal obligations.

Their responsibilities include:

Following the terms

Act in line with the instructions, limitations, conditions, and legal obligations outlined in the Power of Attorney.

Monitoring account activity

Check transactions regularly for any unusual or unauthorised activity, and raise concerns with the bank as soon as possible.

Keeping clear records

Keep accurate records of all interactions, transactions, and decisions made on your behalf.

Keeping finances separate

Keep your money and property separate from their own at all times.

Making decisions in your best interests

Support you to participate in decision-making wherever possible, and avoid situations where personal interests could influence decisions made on your behalf.

Keeping the bank informed

Advise the bank of important changes that affect your arrangements – such as if you lose capacity, pass away, or there are changes to the attorney’s authority or contact details.

Account access for attorneys

When you provide an attorney access to your accounts, they may be issued their own debit card or digital banking access in their own name, as agreed under the Power of Attorney. This helps ensure transactions can be clearly identified as being made by you or by your attorney.

Attorneys must:

Only use access methods issued in their own name
Keep cards, PINs, and passwords secure, and not share them with anyone
Contact the bank if any access details are lost, stolen, or compromised

An attorney must never use any card, PIN, or internet banking password issued to you (the customer).

Responsibilities of the bank

We’re responsible for confirming a Power of Attorney is valid and helping safeguard your accounts.

We have a duty to take extra care where an Enduring Power of Attorney is in effect, as this may indicate you could be vulnerable. We’ll also take extra care with any transaction or request if there are concerns about your capacity to make decisions.

Our responsibilities include:

Confirming the Power of Attorney

Review the document provided to ensure it is valid before granting the attorney access to your accounts.

Confirming authority and consent

Confirm how your attorney is authorised to act on your behalf and, where possible, check with you to confirm instructions or consent.

Acting in your best interests

If needed, we may contact you or request further information from your attorney to confirm instructions are appropriate and in your best interests.

Monitoring unusual transactions

If we identify unusual transactions that may not benefit you, we may request further information or take precautionary steps while we review the activity.

Restricting or removing access

In some situations, we may restrict account access or remove the Power of Attorney from the account until we’re satisfied transactions or requests are appropriate.

Protecting your account

While we support attorneys assisting you, access to your accounts remains at the bank’s discretion to help protect you from potential misuse.

External support services

These organisations provide information and guidance about Enduring Power of Attorney, guardianship and decision-making arrangements in Western Australia.

Office of the Public Advocate
Provides information and guidance on Enduring Power of Attorney, guardianship, and administration – including protecting the rights of people who may need support with decision-making.
Legal Aid WA
Offers legal information, advice, and assistance on a range of matters – including Enduring Power of Attorney and future planning arrangements.
State Administrative Tribunal
Can make decisions about guardianship, administration, and the validity or operation of a Power of Attorney where required.