Life doesn’t always go to plan. A serious accident, a sudden illness, or even just the realities of aging can leave someone unable to make important decisions for themselves.
That’s where an Enduring Power of Attorney (EPOA) comes in.
While many people have heard of a Power of Attorney, few truly understand how an EPOA works, or how important it can be.
According to Corban Revell Senior Partner Lisa Roberts, having the right EPOA in place can make a difficult time a little less stressful for everyone involved.
“It’s not just something for older people,” Lisa says. “A car crash, a stroke, or an unexpected diagnosis can happen at any age. An Enduring Power of Attorney is really about protecting your future and making sure the right person can step in if needed.”
Who Can Make Decisions for You?
There are two main types of EPOA in New Zealand, one for property, and one for personal care and welfare.
A Property Attorney manages your financial and legal matters, like paying bills, managing investments, or selling your house if needed. You can set this up to take effect immediately or only if you become mentally incapable.
A Personal Care and Welfare Attorney, on the other hand, only kicks in if you’re no longer able to make decisions yourself. This person might decide where you live, what kind of care you receive, or whether you undergo certain medical treatments.
“You can’t just assume a family member can make those decisions for you,” Lisa explains. “Without a legal EPOA in place, your loved ones could find themselves stuck, especially when urgent choices need to be made.”
Choosing the Right Person
Deciding who will act on your behalf is an important decision. It’s not about picking the person closest to you, but the one best able to handle the responsibility.
“It’s got to be someone you trust completely,” Lisa says. “You’re giving them the keys to your life, essentially. They need to be calm under pressure, understand what matters to you, and be willing to act in your best interest, even when it’s hard.”
She’s seen cases where the wrong choice has led to family tension or poor decisions. “Sometimes, a person appoints someone out of obligation or emotion, and it doesn’t work out. It’s okay to make a practical choice.”
What Happens Without One?
If you lose mental capacity without a valid EPOA in place, things can get messy. Your loved ones may need to apply to the Family Court for the right to make decisions for you which is often a costly, stressful, and time-consuming process.
“People often think, ‘She’ll be right,’” Lisa says. “But it’s not just about you. It’s about the people who’ll have to pick up the pieces if something goes wrong. Having an EPOA in place can take a huge weight off your family’s shoulders.”
Plan Now, Protect Your Future
The good news is that setting up an Enduring Power of Attorney is relatively straightforward with the right legal advice. And once it’s done, you can get on with life knowing your wishes are protected.
“You don’t have to be unwell or elderly to put one in place,” Lisa says. “In fact, the best time to do it is when everything’s going well. It’s a bit like an insurance policy; you hope you’ll never need it, but you’ll be glad it’s there if you do.”
Need advice about Enduring Powers of Attorney?
Contact Lisa Roberts.