The Power of Attorney You May Need Before a Crisis
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Imagine being temporarily unable to manage your bills, access certain financial arrangements, or make important decisions after an illness. Your partner or adult children may be willing to help, but being a close relative does not automatically give someone the legal authority to act on your behalf in every situation.
In New Zealand, an enduring power of attorney (EPA) allows you to appoint someone you trust to make certain decisions if you later lose the capacity to make them yourself. There are two types: one covering personal care and welfare, and another covering property, such as money and assets. They serve different purposes, and you can arrange one or both depending on your circumstances.
A personal care and welfare EPA covers decisions about matters such as healthcare and living arrangements. A property EPA can cover financial matters, including paying bills, managing bank accounts, or dealing with property. The rules differ: a personal care and welfare attorney generally acts only when you lack the relevant decision-making capacity, while a property EPA can be set up to take effect earlier or when you lose capacity, depending on the document’s terms.
Choosing the right person deserves careful thought. You need someone trustworthy who understands your values, can handle the responsibility, and is willing to act in your interests. It is worth discussing the role with them before making an appointment, rather than surprising them with legal paperwork later.
An EPA must be arranged while you still have the legal capacity to understand what you are signing. It requires specific legal formalities, including witnessing by an authorised professional, so seek advice from a lawyer or another qualified person who can explain the requirements. Do not assume a standard form or an informal agreement with family members will provide the same protection.
An EPA is also different from a will. A will sets out what should happen to your estate after your death, whereas an EPA concerns decision-making during your lifetime. Both can form part of planning ahead, but one does not replace the other.
These conversations can feel uncomfortable because they involve the possibility of losing independence. In practice, arranging an EPA is a way to retain control over who may help and how decisions should be made if circumstances change. Discussing it early gives you time to ask questions, choose carefully, and make your wishes clear before a crisis forces the issue.
