CREATING an ENDURING POWER of ATTORNEY
The best thing you can do for
your family and yourself as you age, is to make sure your personal and financial affairs are all in order.
The stress this will take off your family and you will be unmeasurable.
An enduring power of attorney (EPA) gives peace of mind for the future – you’ve decided ahead of time who you trust to make decisions for you if you can’t decide for yourself.
How it works
An enduring power of attorney, also known as an EPA, is a legal document that gives someone else the authority to make decisions for you if you are no longer able to make decisions for yourself.
If you have an EPA, someone you trust – called your “attorney” – will legally be able to make decisions about your finances, your property, and your care and welfare if you are not able to.
Key terms
The “donor” is the person who is
making the EPA.
An “attorney” is the person appointed in the EPA to make decisions for the donor if they can’t decide for themselves. This person does not have to be a lawyer.
Why you need an EPA
If something happens to you and you do not have an EPA, your family – including your spouse or partner – would have to go to court to be able to act on your behalf. This process can be stressful and expensive for your loved ones.
Having an EPA protects you from financial abuse and means your wishes are more likely to be respected because you have chosen people you trust in advance who will make decisions in your best interest.
A good time to organise your EPA is when you’re making your will, but everyone – whatever their age – should think about getting an EPA.
What an EPA covers
There are two types of EPAs – property EPAs and personal care and welfare EPAs.
Property EPAs
A property attorney can make decisions relating to financial assets, for example: • arranging benefits • paying bills • buying and selling assets • taking care of bank accounts. •
A property EPA can come into effect before you lose mental capacity, for example, if you are moving into assisted living and would like a loved one to manage selling your house on your behalf.
You can choose more than one attorney for this EPA.
Personal care and welfare
A personal care and welfare attorney makes decisions about care, health and living arrangements, for example: • healthcare • accommodation • associated care decisions
A personal care and welfare EPA only comes into effect if a medical professional or the Family Court decides you have become “mentally incapable”.
EPA set-up checklist
Before you talk to your legal adviser: decide who you want your attorneys to be and what you do and don’t want them to do on your behalf • think about how your attorneys might be supported – for example, by naming whānau, friends, or an accountant or solicitor who must be consulted • • or provide your attorney with advice • make a list of the main things you own, any money owed to you, and any debts think about who you want to give a copy of the EPA to – for example your doctor, your bank, or family members decide when you want your property EPA to come into effect – this can be a date, after a period in time, or when you are determined mentally incapable • think about how your attorneys might be monitored, for example by appointing a second person to oversee your financial records, get copies of bank statements, or be informed of certain decisions • decide whether you want to appoint other people to step in as attorneys if something happens to your first choice