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You never know when you might need someone else to make a big decision on
your behalf.

So, while you’re securing your legacy with a will, consider an Enduring Power of Attorney
(EPA). It’s just as important as having a will and easy to have prepared at the same time,
either online or in person.

EPAs are designed to be put in place during your lifetime to protect your assets and
wellbeing. Your will, on the other hand, is there to protect your legacy when you pass
away.

It's a bit confusing?  So have a read of our quick guide to EPAs.

 

What is an enduring power of attorney?

When an injury or illness means you’re unable to make decisions or manage your own affairs - or if managing your financial affairs is simply all too much - an attorney appointed through an Enduring Power of Attorney (EPA) can step in and do it for you. You can also establish an EPA when you simply want someone else to take responsibility on your behalf.

EPAs are as important as wills for protecting you and your family - they ensure that your care, wellbeing, and finances are taken care of by people you trust, or a trustee corporation like Public Trust, in the way that you want.
 
It's important to note that spouses, partners or next of kin aren’t automatically entitled to step in to manage a person’s finances if they’re incapable.
 
 

There are two kinds of EPAs

EPA for personal care and welfare 

Appoint someone to make decisions about your wellbeing, such as where you live and how you will be cared for.

 

EPA for Property

Choose someone who will take care of your finances and property, such as paying bills and managing assets

 

Who should I choose to be my attorney?

You’ll want to give this some thought. While being an attorney is an honour, it’s also a huge responsibility and can involve a lot of personal time and effort. An attorney needs to be 20 years of age and, naturally, you want someone you consider trustworthy. It’s a good idea they live in New Zealand too... the closer the better.

When it comes to property and finance EPAs, you can also choose to appoint a professional trustee organisation as your attorney, like Public Trust. This usually includes fees for time involved in managing your affairs (only if your EPA is activated), but it’s a useful option if you’re worried that financial matters will be challenging for loved ones. Don’t forget, if you go with a trustee organisation, you can request that family or friends still be involved in decision-making.

Want more tips and advice on choosing an attorney? You might find our earlier article handy. Or if you’ve been asked to be one yourself, here’s a good rundown of what’s involved.

Personal Care EPA

Choose someone to make decisions about your wellbeing

Injury or illness can affect any of us and if you’re suddenly unable to make decisions about your care and welfare such as where you live, who you live with, and the healthcare treatment you receive, an Enduring Power of Attorney (EPA) for Personal Care and Welfare is a legal document naming who you trust to make the big decisions on your behalf, when you no longer can. 

Getting your EPA sorted means the choice of attorney is in your hands.

How it works

A personal care and welfare EPA only gets activated if or when you are deemed mentally incapable of making decisions about your care and welfare, by a suitably qualified medical practitioner. 

Your personal care attorney would then be responsible for making important decisions around your treatment, health and welfare, and living situation. They might be needed to choose which rest home you go into and what level of personal care you would want.

Your attorney has specific responsibilities under the law, including regularly consulting with you, encouraging your independence, and acting in your best interests. In your EPA, you can choose other people who you would like your attorney to consult with on decisions, and who they need to provide information to. 

The document is quick and easy to complete, and if you have any questions our local call centre team is on hand to help. 

Who do you trust the most?

You can only appoint one person as a personal care and welfare attorney at a time. Ideally it should be someone who knows your health situation, care needs, and medications. They need to understand what kind of treatment or care you would require to be comfortable. 

We recommend choosing someone who you trust to always act in your best interests and who is up to the task. It’s best if this person is living nearby or at least in the same country as that will make their part to play, a little easier. Find out more about choosing your attorney here.

Property EPA

Choose who will take care of your financial affairs

In the event of an illness or injury, or as you get older and find it too much to maintain, you may be unable to take care of your property and finances on your own. Or, you may simply want to put that responsibility in someone else’s hands. Choosing an attorney under your Enduring Power of Attorney for Property to make decisions and act on your behalf, will give you the peace of mind that this will all be taken care of.

How it works

A Property EPA includes instructions for when it can take effect - either immediately (while you are mentally capable) or at a point in time when you are deemed incapable. You can appoint more than one property attorney and choose whether they must act jointly or individually. Alternatively, you may want them to have the flexibility to act both jointly and individually.

1

 

Jointly

This type of appointment means that the attorneys can only act together, each with the knowledge and approval of the other/s.  Unfortunately, this type of appointment means that if one attorney is unable to act for any reason the other attorney cannot act alone.

2

 

Severally

This type of appointment allows the attorneys to act separately, without the approval of the others. However, the other appointed attorney must be consulted. This type of appointment also enables the donor to revoke the appointment of one attorney, and leave the other in place.

3-1

 

Jointly and severally

This type of appointment allows the attorneys to act together and separately, as required.

This will ensure that if something happens to one of the attorneys, which causes the joint authority to cease, the remaining attorney can still act under the several authority provision.

Once activated, your attorney is responsible for managing your finances and assets based on any conditions set out in your Property EPA. The attorney has a legal responsibility to act in your best interests and to consult with you where practicable.

Why you should have one already

Why and when would I need one?

Broadly speaking, an EPA kicks in when you’ve been medically determined as unable to make life decisions for yourself. This could be for any number of reasons, including illness, mental decline or even an accident, like a fall in the home (touch wood).

You can also choose to put your EPA Property into play after its executed, if you feel decision-making is too much to cope with yourself. In either of these instances, your chosen attorney would step in to help manage your well-being and/or property and finances.

Isn’t an EPA for when I’m over the hill?

No, not at all. We don’t want to be negative Nellies, but accidents and illness can strike at any age. So, it makes good sense for the average Kiwi adult to have an EPA in place. While no one can predict the future, an EPA is a wise back-up plan – just in case.

Can I have some real-life examples of how EPAs help?

Sure. Let’s say you needed to move from your house to a retirement villa, but it was a bit overwhelming to manage by yourself. Your attorneys would then help you find something appropriate, and to suit your budget. If you needed to sell your home to do this, they’d oversee that too.

Another example? Perhaps you’ve had a niggly hip for a while and an operation was the best option. If you weren’t able to, your attorney for PCW would make the necessary arrangements – doctors, surgeons, hospitals, insurance, etc. – and you could relax knowing that the big stuff was taken care of.

One more... It’s the end of financial year and this time around you have a few more tax obligations than usual. If your mental clarity wasn’t what it used to be and you struggled with facts and figures, your attorney for property could simply take responsibility for your tax return and liaise with your accountant on behalf of you to get the job done.

Just so you know, an EPA doesn’t necessarily mean you won’t have a say. You can give as much or as little authority as you want and your attorney is required to include you in their decision-making s as much as possible.

Want more real-life examples on how an EPAs help? You might find this case study handy. Or here’s a few more.

What happens if I don’t have an EPA?

Not the best-case scenario. If you don’t have an EPA and end up needing assistance, an application will have to be made to the Family Court. They’ll appoint someone to be your Property Manager or Welfare Guardian (or both).

This, unfortunately, could tie up valuable time and money that was better spent on you. It may even have an emotional and/or financial impact on your loved ones.

FAQs

Public Trust have published a list of frequently asked questions about EPAs.  Just click here and expand on the question you want answered.

Common terms explained

Here are some common terms and what they mean. 

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