Power of Attorney in New Zealand
A comprehensive look into Power of Attorney for the elderly in New Zealand. Learn about its importance, the legal process, and how to navigate it effectively
Power of Attorney
When you give someone power of attorney, you give them the legal right to act on your behalf. This can be in relation to one or more aspects of your life such as, your finances, your property, or your healthcare.
There are two types of power of attorney – ordinary power of attorney, and enduring power of attorney.
Ordinary power of attorney
You might setup an Ordinary power of attorney if you want to give a person the authority to act on your behalf in relation to some or all of your affairs. This is typical if you are going overseas for a long time and want a trusted person to look after your finances until you return. Note that it ends if you lose legal capacity (ie, lose you ability to make your own decisions via such things as an accident or illness).
Enduring power of attorney
You might set up an Enduring power of Attorney so that someone else will have the authority to make decisions on your behalf, if you lose legal capacity (the ability to understand the nature and consequences of decisions and/or the ability to communicate these decisions).
There are two types of Enduring power of attorney:
Enduring power of attorney for personal care and welfare
For this type you have an individual (it cannot be a trustee corporation) who has the authority to make decisions about your care eg, selecting a rest home or deciding on medical treatment.
A personal care and welfare attorney cannot make decisions about marriage or divorce, refuse standard or life-saving medical treatment, or consent to medical experimentation. This kind of enduring power of attorney comes into effect only when you lose your mental capacity.
Enduring power of attorney for property
For this type you can have one or more individuals, or a trustee corporation, whose role is to make decisions about how your property and finances should be managed. You can decide whether you want this Enduring power of attorney to come into effect immediately or only when you lose your mental capacity.
Note that if you have already lost your mental capacity it is too late to set up an Enduring power of attorney – in this situation the court can appointment someone to look after your welfare and another to manage your property.
Important considerations
When you are thinking of setting up an Enduring Power of Attorney, you can ask yourself the following questions:
- Who do I want to make decisions on my behalf?
- What decisions am I happy for them to make, what am I not happy for them to make?
- How should they be supported in making the decisions? Should they consult with others etc?
- Who should they keep informed about the decisions they make?
- Who should step in if my first choice is not available?
- What are the main things I own and what debts do I have?
- When should it come into effect?
Having thought through these questions then you are ready to start to write an Enduring Power of Attorney. This can be done by a lawyer, or a qualified legal executive or an authorised officer. It is worthwhile looking around to get a price for this, as prices vary considerably. They will help explain what an Enduring Power of Attorney is and lead you through the process. They will also sign and verify that you are of sound mind in signing the document.
Why you need an EPA
If something happens to you and you do not have an Enduring Power of Attorney, 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.
It gives you the ability to choose when you are in a sound mind on who you want to allow to act on your behalf, rather than having the court choose.
Having an Enduring Power of Attorney protects you from financial abuse and means your wishes are more likely to be respected. This is because you have chosen people you trust in advance who will make decisions in your best interest.
When you are setting up your will, you may want to consider writing an EPA at the same time.
There is an excellent webpage for this at Office for Seniors. Click here. It has more details that what I have provided and a lot of forms that you can use. It is worthwhile going through them and considering them before meeting with a lawyer or other authorised person to sign it.