Planning ahead isn’t just about writing a will – it also involves ensuring that trusted people can make decisions for you if you are no longer able to do so. In New Zealand, this is done through Enduring Powers of Attorney (EPAs), and every adult should consider having these in place.
There are two types of EPAs:
Personal Care and Welfare EPA – This allows someone you trust (your attorney) to make decisions about your health, medical treatment, and general welfare if you become mentally incapable of making those decisions yourself.
Property EPA – This lets your attorney manage your financial matters, such as paying bills, managing bank accounts, or dealing with property. You can choose to have this come into effect immediately or only if you become mentally incapable.
Having EPAs in place ensures that your affairs can be managed without delay or court involvement. Without them, your family or loved ones may need to apply to the Family Court for the appointment of a welfare guardian or property manager – a process that is often stressful, time-consuming, and costly.
Your attorney must always act in your best interests and follow specific legal duties, including keeping proper financial records and involving you in decisions where possible. You can choose one or more attorneys and set conditions or limits around what they can do. For example, you might require them to consult with another person before making significant decisions.
It’s important to choose your attorney carefully. This should be someone you trust to respect your values and wishes. Often people appoint a spouse, adult child, or close friend. If needed, you can also appoint a lawyer or professional trustee.
You must be mentally capable at the time you sign an EPA. Once you lose capacity, it is too late to put these arrangements in place – which is why it is vital to plan ahead.
At our practice, we guide you through the process and ensure your EPAs are tailored to your personal circumstances. Having properly prepared EPAs provides peace of mind for you and your loved ones, knowing that the right people are legally able to act on your behalf when needed most.
Talk to us today about setting up your Enduring Powers of Attorney – it’s a simple step that can make a big difference.
