When people think about important legal documents, a Will is usually the first thing that comes to mind. However, there is another legal document that is just as important, but which is often overlooked. That document is an Enduring Power of Attorney.
What is an Enduring Power of Attorney?
An Enduring Power of Attorney (often called an EPA) allows you to appoint someone you trust to make decisions on your behalf if you are unable to do so yourself during your lifetime.
There are two different types of EPAs in New Zealand:
Property
This allows your attorney to manage your financial and property matters. That could include paying bills, handling bank accounts, managing investments, or signing documents on your behalf. You can appoint more than one person for this role, and you can choose whether they can act immediately or only if you lose mental capacity.
Personal Care and Welfare
This covers decisions about your wellbeing such as medical treatment, living arrangements, or ongoing care. Unlike a Property EPA, you can appoint only one person for Personal Care and Welfare, and they can only act once you have been medically assessed as unable to make decisions for yourself.
Why are EPAs so important?
Many people put off arranging EPAs because they hope they will never need them. But life can change unexpectedly. As New Zealanders are living longer, conditions such as dementia are becoming increasingly common. Other events, including strokes, brain injuries, or illnesses such as Parkinson’s disease, can also affect a person’s mental capacity.
Without EPAs in place, families can face significant stress during an already difficult time. If someone loses mental capacity without having signed EPAs, loved ones may need to apply to the Family Court for authority to manage that person’s affairs. This process can be time-consuming, costly, and emotionally draining, particularly when urgent decisions need to be made.
Timing is critical
One of the most important things to understand is that EPAs must be completed while you still have mental capacity. You need to fully understand the nature and consequences of the documents you are signing. If you have already been assessed as lacking capacity, it is too late to put EPAs in place, and Court applications may be the only option available.
That’s why it is often better to arrange EPAs sooner rather than later, regardless of your age.
Can you do your own EPAs?
Some people consider completing EPA forms themselves using online templates. While this may seem straightforward, the documents still need to be properly witnessed and certified by a lawyer, an authorised registered legal executive or a trustee corporation officer to be legally valid.
Importantly, their role is not simply to witness your signature. They must also explain the effect of the documents, ensure you understand what you are signing, and confirm the EPAs comply with New Zealand law. Seeking legal advice from the outset can help ensure the documents are tailored to your circumstances and give both you and your family peace of mind.
Planning ahead
No one likes to think about losing the ability to make their own decisions. However, putting Enduring Powers of Attorney in place is one of the most practical and sensible steps you can take. Like a Will, EPAs are ultimately about protection, certainty, and making life easier for both you and your loved ones when support is needed most.
Anna is a Director at Bramwell Bate. Born and raised in Gisborne, Anna graduated from Victoria University with a Bachelor of Law and a Bachelor of Arts in Japanese. After practising law in Gisborne and Wellington, Anna joined Bramwell Bate in 2015, working in corporate and commercial law, trusts, property, estates and succession law. Outside of work, Anna enjoys the Hawke’s Bay lifestyle with her family and friends.
