Is any conflict created if a client has separate parties acting for them in:

Party 1: An Enduring Power of Guardianship and Advanced Healthcare Directive regarding the client's health matters.

Party 2: An Enduring Power of Attorney regarding the client's financial affairs?

There are several ways in which conflicts could arise between Party 1, who holds an Enduring Power of Guardianship and an Advanced Healthcare Directive, and Party 2, who holds an Enduring Power of Attorney, on behalf of a single client:

1. Decision Overlap: While Party 1 deals with health decisions and Party 2 deals with financial ones, there could be situations where the two overlap. For example, if an expensive medical treatment is recommended, Party 1 might agree to it considering the health benefits, while Party 2 might be concerned about the financial implications.

2. Different Interpretations: Both parties might have different interpretations of the client's wishes or best interests, even if they have written directives from the client.

3. Communication Issues: If the two parties do not communicate effectively, it could lead to unnecessary complications. For instance, Party 1 might make a decision about a health matter that has significant financial implications without consulting Party 2.

Possible Solutions

1. Clear Documentation: Ensure that the directives and powers given to each party are clearly documented and distinct. Ambiguities should be addressed and clarified.

2. Communication Channels: Establish formal channels for both parties to communicate, especially in situations where decisions may overlap.

3. Joint Meetings: Consider periodic joint meetings or reviews to ensure both parties are aligned in their decision-making and are aware of any issues the other might be facing.

4. Client's Wishes: Ensure the client's wishes are well-documented and accessible to both parties. This can serve as a guide in situations of uncertainty.

5. Regular Review: Encourage the client to review and, if necessary, update their directives regularly to ensure they remain relevant to their current circumstances and wishes.

6. Professional Guidance: Both parties should be encouraged to seek professional guidance when in doubt, especially in complex situations where health and financial decisions intersect.

Remember, while these suggestions are based on general principles, the specifics can vary by state and territory in Australia. It would be wise to seek legal advice.

Please be advised this is general information only, and is not to be taken as legal advice. If you would like more information, or have a legal query, please contact Abbott & Mourly directly.
Reviewed: 17/01/2024