austlii:tas/TASCAT/2025/205
General information, not legal advice.
TASCAT
2025-11-06
Original judgment source is linked above.
KI (Review enduring power of attorney) [2025] TASCAT 205
The application to Review Enduring Power of Attorney PA [redacted] registered 21 October 2024 made by the donor [KI] is dismissed.
Review enduring power of attorney - presumption of mental capacity to make EPOA - longitudinal assessment of mental capacity - duties of attorney
CX (Federal Jurisdiction Issue) [2025] TASCAT 158;
JK (Request to Withdraw Application) [2022] TASCAT 21;
Murphy v Doman [2003] NSWCA 249; (2003) 58 NSWLR 51;
Scott v Scott [2012] NSWSC 1541;
SFKD (Review Enduring Powers) [2014] TASGAB 12;
Szozda v Szozda [2010] NSWSC 804.
The decision has been anonymised for the purpose of publication
A Mini Mental State Examination (MMSE) was administered as a standardised brief approximate measure of dysmnesia and dementia... His MMSE score was 16/30. > > [The donor] has a general understanding of his right to decide where he is to live, but appears to have already delegated that decision and accepted the status quo. He would prefer a placement in or near [redacted] but that is a matter of long-term familiarity, and he recognises the value of proximity to his daughter in [regional Tasmania]. He does not understand why he cannot practically return home and live with his son. > > [The donor] displayed evident difficulties retaining information, perseverating on issues that had engaged his attention or emerged saliently from his long-term memory. He could express general preferences regarding his placement and the competing advantages and disadvantages of the alternatives, but he has no strong emotional commitment to any of the alternatives and could announce no substantive decision. He appears to have already delegated the decision. > > It is my opinion that his decision-making capacity is substantially impaired and effectively lacking for the matters under consideration. His evident incapacity for decision-making is a product of an undoubted dementia and the lacunar rather than continuous memory impairment is consistent with a vascular component or a recent unrecalled systemic illness with delirium.
Statutory framework - Review of enduring powers of attorney
(2) A deed or instrument is not effective to create an enduring power of attorney unless - > > (a) the donor understands the nature and effect of the deed or instrument; and... > > (3) For the purposes of subsection (2)(a) , a donor is taken to understand the nature and effect of a deed or instrument only if he or she understands the following matters: > > (a) that the donor may, in the enduring power of attorney, specify or limit the power to be given to an attorney and instruct an attorney about the exercise of the power; > > (b) when the power begins; > > (c) that, once the power for a matter begins, the attorney has power to make, and will have full control over, the matter subject to terms or information about exercising the power included in the enduring power of attorney; > > (d) that the donor may revoke the enduring power of attorney at any time when he or she has the mental capacity to do so; > > (e) that the power the donor has given continues even if the donor subsequently loses his or her mental capacity; > > (f) that the donor is unable to oversee the use of the power if he or she subsequently loses mental capacity.
32. Duties of attorney under enduring power of attorney > > (1) An attorney under an enduring power of attorney, during any period of mental incapacity of the donor - > > (a) is taken to be a trustee of the property and affairs of the donor according to the tenor of the power; and > > (b) must exercise his or her powers as attorney to protect the interests of the donor - > > and, if he or she fails to do so, is liable to compensate the donor for any loss occasioned by the failure. > > (1A) An attorney, in so far as doing so will not conflict with the attorney's duty under subsection (1) to protect the interests of the donor, must at all times exercise his or her powers under an enduring power of attorney as far as is possible and reasonable in the circumstances - > > (a) in the best interests of the donor; and > > (b) in consultation with the donor; and > > (c) taking into account - > > (i) the wishes of the donor, in so far as those wishes have been, or can be, ascertained; and > > (ii) what would be reasonably likely to be the wishes of the donor, if he or she were not subject to a mental incapacity. > > (1B) For the purposes of this section, an exercise of a power under an enduring power of attorney is not to be taken to constitute a failure to protect the interests of the donor, and is to be taken to be in the best interests of the donor, if - > > (a) it is an exercise of a power that the donor would have been likely to make if he or she were not subject to a mental incapacity; or > > (b) the exercise of the power consists of providing for those persons who the donor would expect to provide for, if he or she were not subject to a mental incapacity. > > (2) An attorney under an enduring power of attorney is not competent to appoint another person to perform any functions or exercise any powers in his or her capacity as such. > > (3) An attorney under an enduring power of attorney must keep any property of the donor (apart from property held by the attorney and the donor as tenants in common or joint tenants) separate from property of the attorney.
33. Power of Tribunal to make orders in respect of enduring power of attorney > > (1AA) In this section, a reference to an enduring power of attorney includes a reference to a purported enduring power of attorney. > > (1) The Tribunal may - > > (a) of its own motion; or > > (b) on application by an attorney; or > > (c) on application by or on behalf of a donor; or > > (d) on application by any other person who the Tribunal believes has a proper interest in the matter - > > hold a hearing in accordance with the Tasmanian Civil and Administrative Tribunal Act 2020 to review an enduring power of attorney. > > (1A) The Tribunal may dismiss an application for review if it is of the opinion that the application is frivolous, vexatious or lacking in substance. > > (1B) Without limiting the matters to which the Tribunal may have regard in relation to a review in respect of a donor, the Tribunal may open and read any paper or writing which purports to be, or is alleged to be, the will of the donor. > > (2) On the review, the Tribunal may, by order - > > (a) vary a term of, or a power conferred by, the enduring power of attorney; or > > (b) appoint a substitute attorney; or > > (c) appoint an administrator of the estate of the donor if he or she is over the age of 18 years; or > > (d) declare that the donor did or did not have mental capacity to make a valid enduring power of attorney or to revoke an enduring power of attorney; or > > (e) declare that the enduring power of attorney or the revocation of it by the donor is invalid if the Tribunal is satisfied that - > > (i) the donor did not have the mental capacity to make the power or the revocation, respectively; or > > (ii) the power or the revocation, respectively, does not comply with the other requirements of this Act; or > > (iii) the power or the revocation, respectively, is invalid because the donor was induced to make it by dishonesty or undue influence or invalid for any other reason; or > > (f) revoke the enduring power of attorney and, if the donor is over the age of 18 years and the Tribunal thinks fit, appoint an administrator of his or her estate; or > > (g) make such other order as to the exercise of the power, or the construction of its terms, as the Tribunal thinks fit.
(3) An appointment of a person as administrator under subsection (2)(f) has the same effect as if it had been made under Part 7 of the Guardianship and Administration Act 1995.
38 Saving provision > > Except as provided by this Part, nothing in this Part is taken to derogate from the law relating to powers of attorney.
Challenge to donor's capacity to make EPOA on 11 October 2024
I saw no indication whatsoever that [the donor] did not understand the document he was signing nor any evidence of cognitive decline. I understand that he was in hospital at the time for shock as his wife had very recently died. He was certainly aware of his surrounds, who his family was and discussed my friend [the nephew of the donor] and that his sister had passed away as well not long before our meeting. > > I advised him that, prior to signing the document, that it was a General Enduring Power of Attorney that would allow [the attorney] to administer his financial matters, real property and the like. I also advised him the nature of it being a General Enduring Power of Attorney, in that it endured beyond him losing mental capacity but he wished for the Power of Attorney to be registered immediately. I advised him that once registered he would not be able to revoke that if he lost subsequent capacity. He understood that. I know that he understood as he was able to explain in his own words what I had said and had stated what the purpose of the Enduring Power of Attorney was when I asked him at the beginning of our meeting. We also discussed limiting powers contained in the Power of Attorney and that he wanted to I could redraw the document but he did not wish to do so and told me that he wanted [the attorney] to do what he could. > > He was aware that he had two children but was very clear that he only wished [the attorney] to be his attorney.
It's not my first time going to a hospital to have a will or a power of attorney signed. And I always address my mind to that and those in any circumstance, but in particular those circumstances. That's why I asked him at the first (sic) what is it that you're signing, what is your understanding? So he could provide it in his own terms about what he's doing. And also I asked him whether he had considered making anybody else his attorney or just [the attorney] and he told me in no uncertain terms that he wants [the attorney] to be able to sign what he could and be able to make those decisions and the reason was as put in my affidavit because she's a professional person, that she's capable of doing it.
If I had any doubts at all, and certainly there have been circumstances where I've been where I've gone down to a hospital or I've even seen people in my office and I've said no, we're not doing this... I'm very conservative about it. If people seem even a little bit shaky then I ask for ... someone to provide me with some sort of medical evidence that they are actually capable but there was nothing that gave me any indication at all that he couldn't understand or that he was incapable or even impaired.
Law Society of Tasmania- Important considerations for solicitors preparing an enduring power of attorney
A solicitor taking instructions for the preparation of an enduring power of attorney must be satisfied that the client (potential donor) has the mental capacity to execute that instrument. > > Circumstances that might cause a solicitor to question the potential donor's capacity to execute the instrument might be that the client:
a) is currently a patient in a hospital, aged care facility or supported accommodation facility (group home or boarding house);
b) is highly supported in interviews by a family member or friend but is not as competent in giving instructions or understanding advice in the absence of that family member or friend;
c) frequently changes his or her instructions;
d) behaves in a highly unusual manner, makes bizarre statements during interviews or is excessively forgetful and disorganised.
If a solicitor has any doubts about the client's capacity to understand the nature and effect of the document, the solicitor should obtain a report from a medical practitioner, geriatrician, Occupational Therapist or a psychologist with relevant professional experience.
... will, not uncommonly, call for consideration of events leading up to and beyond, the time of execution of the disputed power of attorney, as well as on the focal point of the time of execution itself. A longitudinal assessment of mental capacity along a timeline extending either side of the focal point, may be necessary, or at least permissible, in order to examine the subject's mental capacity in context (Scott v Scott at [200]).
It is my opinion that his decision-making capacity is substantially impaired and effectively lacking for the matters under consideration. His evident incapacity for decision-making is a product of undoubted dementia and the lacunar rather than continuous memory impairment is consistent with a vascular component or a recent unrecalled systemic illness with delirium.
[26] ... when considering whether to exercise the discretion to make an order under s 33 of the POA Act in relation to the operation of an instrument... the Tribunal is examining the evidence to decide whether an attorney has in any way breached their duty as an attorney, or has otherwise not acted, or will not be able to act in future, in a manner which protects the interests of the donor, promotes their best interests, and where possible and appropriate, reflects any known wishes or likely wishes of the donor as codified in s 32 of the POA Act... > > [27] The statutory decree that the attorney is taken to be a trustee of the property and affairs of the donor also means that the standard of care applicable to trustees as defined by general law clearly apply to attorneys appointed under an enduring power of attorney: See G Dal Pont, Powers of Attorney (3rd ed, 2020, LexisNexis Butterworths) at [8.27]. > > [28] For example, evidence may lead the Tribunal to conclude that an attorney has breached their duty by failing to keep property of the donor separate from the property of the attorney (s 32(3)), or by engaging in gifting of the donor's estate outside of the parameters permitted by s 31(3), or has entered into a transaction that results in a conflict of interest (s 32AC), or has failed to keep accurate records of transactions as required by s 32AD. In addition, the acts of an attorney, or perhaps even a failure to act (see Dal Pont, ibid at [8.23]), may amount to a breach of the fiduciary duty owed by the attorney to the donor.
Murphy
Doman
(2003) 58 NSWLR 51