As seniors approach retirement and later life, planning for the future becomes increasingly important. Estate planning and understanding aged care options can help provide peace of mind for individuals and their families.
For people in Victoria planning for later life, there are several important legal considerations. These include preparing a valid will, appointing an enduring power of attorney, planning for future medical treatment decisions, and understanding aged care arrangements.
This guide explains the key legal considerations for seniors in Victoria and outlines practical steps to help you plan for your future, protect your interests and ensure your legal documents continue to reflect your wishes.
Key Considerations for Seniors in Victoria
Estate planning and aged care planning often involve several different legal and financial decisions. Depending on your circumstances, it may be important to consider:
- How your assets will be distributed through your will.
- Who can make financial and personal decisions if you lose decision-making capacity.
- Who can make medical treatment decisions if you are unable to make them yourself.
- What aged care and support you may need in the future.
- How aged care agreements, fees and responsibilities apply to your circumstances.
- Whether financial decisions involving your assets could have unintended consequences.
These matters are connected, but each legal document serves a different purpose. Planning them together can help ensure your legal documents and financial arrangements continue to reflect your wishes as your circumstances change.
| Planning document or arrangement | Main purpose |
|---|---|
| Will | Sets out how your estate is intended to be distributed after your death. |
| Enduring power of attorney | Allows you to appoint someone to make financial and/or personal decisions on your behalf, subject to the authority you give them. |
| Medical treatment decision maker | Allows an appointed person to make medical treatment decisions for you if you do not have decision-making capacity. |
| Advance care directive | Allows you to record instructions and/or values and preferences about future medical treatment. |
| Aged care arrangements | Set out the care and support you receive and the applicable services, fees and responsibilities. |
The Importance of Estate Planning for Seniors
Estate planning involves deciding how your assets will be dealt with after your death. It gives you greater control over your financial legacy and can help reduce the risk of disputes between family members and other beneficiaries.
For Victorian seniors, a valid will forms an important part of estate planning. A will outlines who receives your assets. Depending on your circumstances, it can also address guardianship arrangements for dependants.
If you die without a valid will, intestacy laws in Victoria determine how your estate is distributed. These rules may not reflect your wishes.
Seniors should therefore consider reviewing their will regularly. Life changes such as relationships, family updates and financial changes may mean that an existing will no longer reflects their circumstances or intentions.
Regularly reviewing your estate plan can be particularly important after major changes in your life. These may include:
- Entering a new relationship.
- Separation or changes in family circumstances.
- The birth of children or grandchildren.
- Changes to your assets or financial circumstances.
- Changes to your intended beneficiaries.
Testamentary Trusts
Testamentary trusts can also help manage asset distribution over time. They may provide a structured way of supporting beneficiaries and can be relevant where a beneficiary requires additional financial protection or assistance.
Whether a testamentary trust is appropriate will depend on your individual circumstances and the needs of your beneficiaries. Trust structures can be complex, so professional advice should be obtained before deciding whether one should form part of an estate plan.
Powers of Attorney: Planning for Incapacity
Estate planning should also prepare for situations where you lose decision-making capacity. Powers of attorney allow someone you trust to make certain decisions for you, depending on the authority given to them.
In Victoria, an enduring power of attorney allows you to appoint someone you trust to make decisions about financial matters, personal matters, or both. The authority can continue if you lose decision-making capacity, subject to the terms of the appointment.
- Financial matters: An attorney can manage financial and property matters within the authority given to them.
- Personal matters: An attorney can make decisions about personal matters, including living arrangements and personal care, within the authority given to them.
Medical treatment decisions are dealt with separately under Victoria’s medical treatment decision-making laws. An enduring power of attorney does not automatically give an attorney authority to make medical treatment decisions.
Instead, you can appoint a medical treatment decision maker and make an advance care directive to help ensure your medical treatment wishes are understood and respected if you later lose decision-making capacity.
These arrangements can reduce uncertainty for families and help ensure your wishes are taken into account if illness or incapacity occurs.
For further guidance about enduring powers of attorney in Victoria, you can refer to the Office of the Public Advocate.
Understanding Medical Treatment Decision-Making in Victoria
Medical treatment decision-making is separate from financial and personal decision-making under an enduring power of attorney.
If you lose decision-making capacity in relation to medical treatment, an appointed medical treatment decision maker can have legal authority to make medical treatment decisions on your behalf. You can also use an advance care directive to communicate your wishes about future medical treatment.
Planning these matters in advance can make it easier for your family and health practitioners to understand your wishes if you are later unable to communicate or participate in medical treatment decisions.
Advance Care Directives
Advance care directives are also important. They allow you to record your medical treatment preferences and can help ensure doctors and family members understand your wishes if you are unable to make medical treatment decisions yourself.
In Victoria, an advance care directive can record instructions about future medical treatment and/or your values and preferences. This is separate from your will and from an enduring power of attorney, as each document serves a different purpose.
An advance care directive can therefore form part of a broader plan for future decision-making. It should be reviewed when your circumstances, preferences or relevant medical considerations change.
Legal advice can help you understand how your advance care planning documents fit with your broader estate and incapacity planning.
Navigating Aged Care Options in Victoria
Aged care in Victoria includes different forms of support depending on a person’s needs and circumstances. Seniors may receive care and support at home or move into residential aged care.
Home-based support can help older people remain living independently where appropriate, while residential aged care can provide accommodation and a higher level of ongoing support where required.
The Aged Care Act 2024 provides the current legislative framework for aged care in Australia. The Act commenced on 1 November 2025 and replaced the previous Aged Care Act 1997 framework.
Entering aged care involves financial and legal decisions. Families should review aged care agreements and other relevant documents carefully. Depending on the arrangement, these documents may set out services, fees, responsibilities and other important terms.
Support at Home
The aged care system has also changed with the introduction of the Support at Home program on 1 November 2025.
Support at Home replaced the former Home Care Packages Program and Short-Term Restorative Care Programme. The Commonwealth Home Support Programme remains separate for the time being and is expected to transition to Support at Home no earlier than 1 July 2027.
Depending on your circumstances, the type of care available and the costs or contributions that apply may vary. Seniors and their families should make sure they understand the arrangements that apply to their individual circumstances.
Because aged care rules and arrangements can change, current information should be checked before making significant decisions about care or finances.
How Estate Planning and Aged Care Overlap
Estate planning and aged care can affect each other. Financial decisions may have consequences for a person’s broader financial circumstances, including matters relevant to government benefits or aged care costs.
For example, selling assets or making significant gifts may have financial consequences depending on the person’s circumstances and the arrangements involved.
Because of this, careful planning is important. Professional advice can help identify potential consequences before significant financial decisions are made.
Some families use trusts to manage assets. Trusts can form part of an estate plan and may support future generations. However, trust laws and their potential consequences are complex.
You should seek advice from a lawyer experienced in estate planning and aged care before establishing or changing a trust structure where it forms part of your broader planning.
Before making significant gifts, transferring assets or changing the ownership of property, it is important to understand how those decisions may affect your circumstances. The consequences will depend on the individual circumstances of the person and the arrangements involved.
What Should Seniors Review When Planning for the Future?
Planning ahead can help seniors and their families understand what needs to be put in place. Depending on your circumstances, you may wish to review the following:
- Your will: Make sure it reflects your current wishes and circumstances.
- Your enduring power of attorney: Consider who you trust to make financial and personal decisions if you lose capacity.
- Your medical treatment arrangements: Consider appointing a medical treatment decision maker and making an advance care directive.
- Your aged care arrangements: Understand the care options, services, fees and responsibilities that apply to you.
- Your financial arrangements: Consider the potential consequences of significant gifts, asset transfers or changes to ownership.
- Your estate planning structures: Consider whether a testamentary trust or another structure is appropriate for your circumstances.
These documents and arrangements should also be reviewed when your personal, family, financial or care circumstances change.
Taking Action: Protect Your Future with Expert Legal Advice
Estate planning and aged care decisions require careful thought. Professional legal advice can make the process clearer and help you understand how different legal arrangements may work together.
At Irvine Lawyers, we help seniors and families with tailored legal support. We assist with wills, powers of attorney and aged care agreements.
Do not leave your future to chance. Book an appointment with solicitor Laurie Irvine today. Click here to arrange a consultation and discuss your circumstances.
Frequently Asked Questions
What should seniors in Victoria consider when estate planning?
Seniors in Victoria should consider their will, powers of attorney, medical treatment arrangements and the way their financial affairs may interact with future aged care needs. Depending on their circumstances, testamentary trusts and other estate planning structures may also be relevant.
What is an enduring power of attorney in Victoria?
An enduring power of attorney allows a person to appoint someone they trust to make financial and/or personal decisions on their behalf. The arrangement can continue if the person loses decision-making capacity, subject to the terms of the appointment.
Can an enduring power of attorney make medical treatment decisions?
Not automatically. In Victoria, an enduring power of attorney relates to financial and/or personal matters. Medical treatment decisions are dealt with separately. A person can appoint a medical treatment decision maker and make an advance care directive.
What is an advance care directive in Victoria?
An advance care directive allows a person to record instructions about future medical treatment and/or document their values and preferences for medical treatment if they later lose decision-making capacity.
Does estate planning affect aged care?
It can. Financial decisions such as selling assets or gifting money may affect a person’s financial circumstances and, depending on the circumstances, government benefits or aged care costs. Professional advice can help identify potential consequences before significant financial decisions are made.
What aged care options are available in Victoria?
Seniors may receive care and support at home or move into residential aged care depending on their needs and circumstances. Australia’s aged care system has changed, including the introduction of the Support at Home program from 1 November 2025.
Should I review my estate plan when entering aged care?
Entering aged care can be an appropriate time to review your estate planning and other legal documents, particularly if your financial circumstances, living arrangements or care needs have changed. Professional advice can help ensure your documents continue to reflect your wishes.
Final Thoughts
Seniors in Victoria should plan for more than just a will. They should also consider their legal, financial and care needs together. Estate planning, powers of attorney, medical treatment arrangements and aged care planning can all play an important role.
Taking action early can provide greater clarity and help ensure important decisions are made according to your wishes. With the right legal support, seniors can plan confidently for the future.
If you have questions or need assistance, contact us today. Irvine Lawyers can help you understand your options and manage your legal affairs.