Disputes and advice / An attorney is misusing a power
An attorney is misusing a power of attorney
Power of attorney abuse is the misuse of a power by the attorney: money taken, property sold or accounts hidden. An attorney under an enduring power must act honestly and for the person who appointed them. Where they do not, VCAT and the Supreme Court can stop them, examine the accounts and order compensation. Victorian law only.
Power of attorney abuse: in short
- An attorney must act honestly, diligently and in good faith, avoid conflicts of interest and keep accurate records.
- VCAT can order accounts to be lodged and audited, suspend or revoke the power, and rule on whether a transaction is valid.
- VCAT or the Supreme Court can order the attorney to compensate the person for loss.
- Dishonestly using a power to gain a financial advantage or cause loss is a crime, with up to 5 years in prison.
- If the person or the attorney has died, a compensation claim must be made within 6 months of the death, unless time is extended.
Signs of power of attorney abuse
- Transfers to the attorney, their family or their business.
- The home sold or mortgaged with no clear benefit to the person.
- Gifts beyond what the Act allows. An attorney may give only reasonable gifts, to a relative or close friend for a seasonal or special occasion, or donations of a kind the person made or would be expected to make.
- The attorney’s money and the person’s money mixed together.
- No records, or a refusal to show them.
- The attorney paying themselves when the power does not allow it.
What can be done about power of attorney abuse
Who can apply to VCAT?
The person who made the power, any attorney, the Public Advocate, the nearest relative, or anyone VCAT is satisfied has a special interest in the person’s affairs. For compensation: also the executor or administrator of the estate.
A limit worth knowing
VCAT may revoke an attorney’s appointment only if satisfied that the attorney is not complying with the Act and that the person no longer has the capacity to make a power themselves.
If you are the attorney and are accused
An attorney who has acted honestly and reasonably can be excused by VCAT or the Supreme Court from liability for a breach. We also act for attorneys, but never for both sides of the same dispute.
Power of attorney abuse: what it costs
First advice on the papers, with a meeting of up to half an hour and a written plan: $880 including GST. An application to VCAT is quoted in stages after that. See Advice before you act.
Power of attorney abuse: common questions
Have another question? Phone 1800 776 529 or send us a message.
Not as of right. You can ask the attorney, and you can apply to VCAT as nearest relative or as a person with a special interest.
A claim for compensation can still be made, and compensation is paid to the estate, but the time limit is 6 months from the death unless extended.
Next step
Send us the power of attorney and what you know about the transactions. We reply within one business day. Send us the documents or call 1800 776 529.
Power of attorney abuse: the law
- Powers of Attorney Act 2014 (Vic) ss 63, 64, 66, 67, 69, 70, 74, 77 to 79, 116, 120, 122, 135.
Last reviewed: November 2026. This page is general information about Victorian law as at November 2026. It is not legal advice about your circumstances.
Send us an enquiry
We reply within one business day.
To send documents, use the Send instructions form. If something is about to happen in the next few days, such as a sale or a hearing, please also call us.
Phone: 1800 776 529
Email: info@enduringpowerofattorney.com.au
Hours: Monday to Friday, 9 am to 5:30 pm
Office: 435 Nepean Highway, Frankston VIC 3199 (by appointment)
We act for attorneys and for families, but never for both sides of the same dispute. Before we start, we check that we have not acted for anyone else involved. [CHECK: confirm this line]