Understanding Enduring Power of Attorney (EPA)
What is an Enduring Power of Attorney (EPA)?
An Enduring Power of Attorney (EPA) is a legal document that allows you to appoint someone you trust to make decisions on your behalf if you become unable to do so yourself. This person is known as your “attorney.”
Types of EPAs
There are two types of EPAs in New Zealand:
- Personal Care and Welfare: This allows your attorney to make decisions about your health, personal care, and welfare. This type of EPA only comes into effect if a medical professional certifies that you are mentally incapable of making these decisions yourself.
- Property: This allows your attorney to manage your financial affairs and property. You can choose when this EPA comes into effect – it can be immediately, or only if you become mentally incapable.
Why have an EPA?
Having an EPA ensures that your personal and financial matters are handled by someone you trust if you are unable to make decisions yourself. It provides peace of mind and can prevent legal complications and delays. It’s important to note that EPAs are not just for the elderly – everyone should consider having one. Unexpected events can happen at any age, and having an EPA in place ensures your wishes are respected.
How to set up an EPA
- Choose your attorney: Select someone you trust to act in your best interests. You can choose different people for each type of EPA.
- Consult a legal professional: They will help you draft the EPA documents and ensure they meet legal requirements and arrange for you and your attorney(s) to have them signed.
What happens if you don’t have an EPA?
If you become unable to make decisions and don’t have an EPA, the Family Court may need to appoint someone to make decisions for you. This process can be time-consuming and stressful for your loved ones.
This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request
