As the New Zealand public ages, the need for establishing an Enduring Power of Attorney grows. An EPA is a legal document, allowing you to appoint someone you can trust to make decisions on your behalf if you become mentally incapacitated. From accidents to illnesses and aging, planning ahead with an EPA is a proactive way to protect yourself now and in the future. Understanding the implications of the document and having a lawyer, who is experienced in drafting EPAs helps make sure your needs are covered. In addition, there are other options such as trusts and wills that can help bolster the security of your assets.
The Growing Importance of Enduring Power of Attorney in New Zealand
As the kiwi populace continues to age, so too does the importance of establishing an Enduring Power of Attorney (EPA) in New Zealand. An EPA is a legal document that allows you to appoint someone you trust to make significant decisions on your behalf, should you become mentally incapacitated. The need for an EPA spans a variety of circumstances, including aging, illness, and traumatic accidents.
While many people believe they’re prepared with a well-thought-out will in place, too often have they neglected the crucial aspects of planning for unforeseen circumstances during their lifetime. Cue the rise of EPAs in navigating these vital decisions with utmost confidence.
Debunking the “I’m Fit and Healthy” Myth: Why You Need an EPA Now
“I don’t need an EPA, mate! I’m as fit as a fiddle and healthier than a horse.” It’s a bold statement many New Zealanders may make in their youthful prime, underestimating the unpredictability of life. The truth is, a sudden accident or illness may happen at any age, leading to an immediate need for an EPA.
By appointing an enduring power of attorney before disaster strikes, you create a roadmap for your loved ones and caregivers to follow in your best interests, without the prolonged wait and enormous costs of a court process.
Covering All Bases: Choosing Between Personal Care & Welfare and Property EPAs
To ensure you’re fully armed for what life may throw at you, there are two types of EPAs to consider in New Zealand: Personal Care and Welfare, and Property.
A Personal Care and Welfare EPA appoints someone to make decisions on your behalf regarding healthcare, living arrangements and overall personal welfare. It’s only activated when you’re assessed as mentally incapable by a medical professional.
A Property EPA, on the other hand, covers all decisions regarding your finances, investments, and properties. You have the option to activate it while you’re still mentally capable, allowing for guidance during international travel or a busy period where you have little time to manage your property.
Mental Capacity: The Key to Activating Your Enduring Power of Attorney
An EPA only comes into action when you’re deemed to lack mental capacity. But what exactly does that mean?
In New Zealand, the mental capacity test falls under two categories: the cognitive/informational test and the functional/decision-making test. Both tests are designed to ascertain whether an individual is indeed mentally incapable of making sound decisions on their own.
From the point of lost mental capacity onwards, your chosen attorney(s) can legally take control of the designated decisions in your life.
Step by Step: How to Create and Implement an Enduring Power of Attorney
- Seek professional advice: Consult a lawyer, experienced legal executive or trustee corporation (e.g., Public Trust) for guidance on creating an EPA that fits your unique circumstances.
- Choose your attorney(s): Carefully select reliable individuals, and discuss their willingness to act on your behalf when required.
- Draft the EPA document: Your legal advisor will draft the document according to your specifications, preferences, and legal obligations.
- Sign, certify and witness the EPA: You, your attorney(s) and your legal advisor will all need to sign and appropriately witness the document. A medical professional may also be required to certify your mental capacity at the time of signing.
- Store the EPA safely: Lodge a copy with your legal advisor and provide a copy to your attorney(s), ensuring the original document is stored securely.
Trust and Transparency: Picking the Right Attorney and Setting Guidelines
The success of your EPA hinges on the level of trust and communication between you and your appointed attorney(s). Choose someone reliable, trustworthy, and with a transparent history of decision-making. Discuss your preferences extensively and clearly set guidelines within the EPA document, ensuring your attorney(s) have a solid understanding of your wishes.
Frequently Asked Questions: Understanding EPAs and Their Implications
Navigating the landscape of EPAs can be complex. Consult with professionals and seek answers to any questions or concerns you may have. Armed with knowledge, you’ll make well-informed decisions about your future as well as those you love.
Alternatives to EPAs: Exploring Wills, Living Wills, and Trusts as Options
EPAs may not be the only solution to your specific needs. Assess your options by learning more about wills, living wills, and trusts as viable methods for protecting your assets and future. Speak with a professional to guide you on the best course of action for your particular situation, ensuring all bases are covered should an unexpected storm comes knocking.
In Conclusion: Embrace the Power of an EPA in New Zealand
Life is unpredictable, and as such, it’s critical to plan for the unexpected. Establishing an Enduring Power of Attorney ensures that your wishes are honoured and your loved ones are supported, regardless of any twists and turns life throws your way. By taking the time and effort now to create a robust EPA, you’re providing peace of mind for yourself and those around you, for better or for worse.
Next Steps: Secure Your Future Today
- Research and educate: Delve into the realm of EPAs, wills, living wills, and trusts to understand your options and which solution fits your unique needs.
- Seek professional advice: Consult a lawyer, experienced legal executive, or trustee corporation for guidance in establishing an EPA tailored to your circumstances.
- Choose your attorney(s) wisely: Select trustworthy and reliable individuals willing to act in your best interests and discuss their roles and responsibilities extensively.
- Communicate openly: Maintain open lines of communication with your chosen attorney(s), setting clear guidelines within the EPA document and discussing your preferences.
- Think long term: Acknowledge that while you may be in perfect health today, life can change in the blink of an eye. Take the necessary steps to protect your assets, personal welfare, and decision-making power as you age.
Embark on this journey to secure your future with the help of a trusted professional and the unwavering support of those you love. By doing so, you’ll be prepared and resilient, ready to handle