Enduring Power of Attorney in New Zealand: A Comprehensive Guide
As a New Zealander, planning for the future is essential, especially when it comes to your health, finances, and well-being. One legal tool that plays a vital role in securing these aspects is the Enduring Power of Attorney (EPA). This document allows you to appoint someone you trust to make decisions on your behalf if you are unable to do so. In this article, we’ll delve into what an EPA is, why it’s important, and how you can set one up in New Zealand.
What is an Enduring Power of Attorney (EPA)?
An Enduring Power of Attorney is a legal document that grants someone the authority to make decisions on your behalf. The key feature of an EPA is that it endures even if you lose mental capacity, meaning it remains in force if you become unable to make decisions due to illness or age-related conditions like dementia.
There are two main types of EPAs in New Zealand:
- Property EPA: This allows the appointed person (known as the attorney) to make decisions about your financial affairs, including paying bills, managing bank accounts, and handling investments.
- Personal Care and Welfare EPA: This gives the attorney the authority to make decisions about your health and well-being, such as medical treatment or living arrangements, if you are unable to make those decisions yourself.
Why is an Enduring Power of Attorney Important?
An EPA is crucial because it ensures your wishes are respected when you can no longer express them. Without an EPA in place, your loved ones may have to apply to the court to manage your affairs, which can be time-consuming, costly, and emotionally taxing.
By setting up an EPA, you gain peace of mind, knowing that your affairs are in the hands of someone you trust. It can also prevent potential conflicts among family members and reduce the risk of financial abuse.
Who Can Be an Attorney?
Choosing the right person to act as your attorney is one of the most important decisions you’ll make. Your attorney should be someone who:
- You trust implicitly to act in your best interests.
- Understands your wishes and values.
- Is willing and able to make decisions on your behalf, even in difficult situations.
- Is over the age of 20 and mentally capable.
You can appoint one or more attorneys. If you appoint more than one, you must specify whether they must act together or if they can act independently.
How to Set Up an Enduring Power of Attorney in New Zealand
Setting up an EPA in New Zealand is a relatively straightforward process, but it requires careful consideration. Here’s a step-by-step guide on how to create an EPA:
- Understand the Types of EPAs: Before creating an EPA, you need to decide whether you want a Property EPA, a Personal Care and Welfare EPA, or both.
- Choose Your Attorney(s): Think carefully about who will best represent your interests. Discuss your decision with the person you are considering to ensure they understand their responsibilities.
- Complete the EPA Form: The EPA document must be signed by both you and your chosen attorney. It must also be witnessed by a qualified person, such as a lawyer or a court registrar.
- Sign the Document: Once completed, you and your attorney must sign the EPA form. The document must also be signed by a witness who confirms that you are acting voluntarily and are of sound mind.
- Register the EPA (if necessary): While an EPA for property does not need to be registered, it’s recommended for Personal Care and Welfare EPAs. If you want your EPA to be legally valid, consider registering it with the Family Court.
Can an Enduring Power of Attorney Be Changed?
Yes, you can change or revoke your EPA at any time while you still have mental capacity. If you change your mind about who you’ve appointed, you simply need to revoke the existing EPA and create a new one. However, once you lose mental capacity, you cannot change or revoke the document unless you had made provisions for this earlier.
What Happens if There’s No EPA in Place?
If you don’t have an EPA in place and you lose mental capacity, your family members may have to apply to the Family Court for a welfare guardian or property manager to make decisions for you. This process can be expensive, time-consuming, and emotionally difficult for your loved ones. It’s far better to plan ahead by setting up an EPA while you are still mentally capable.
Conclusion: Plan Ahead for Peace of Mind
An Enduring Power of Attorney is an essential tool for ensuring your well-being and finances are managed according to your wishes if you become unable to make decisions for yourself. Setting one up is a simple and inexpensive process that can save your family from unnecessary stress in the future. By taking the time to carefully choose your attorney and complete the necessary paperwork, you’re making a wise decision that provides peace of mind for you and your loved ones.
Remember, life can be unpredictable, but with an EPA, you can be confident that your affairs are in capable hands, even when you can no longer handle them yourself.
By understanding the ins and outs of EPAs and taking action now, you’re safeguarding your future in a way that provides you and your family with the support you deserve.
