Enduring Powers of Attorney: three things every New Zealander should consider

Most of us understand the importance of having a will, but what happens if you are still alive and become unable to make important decisions for yourself?

That is where an Enduring Power of Attorney (EPA) comes in.

There are two types in New Zealand: a Property EPA, covering financial matters such as banking, investments and property; and a Personal Care and Welfare EPA, covering decisions about your health, medical treatment, living arrangements and personal care.

With around 83,000 New Zealanders estimated to be living with dementia in 2025, and that number expected to roughly double by 2050, planning for loss of capacity is becoming increasingly important.

And it isn’t just dementia. A stroke, serious illness, accident or brain injury can leave someone unable to manage their affairs at any age.

Here are three things to consider.

1. Put your EPAs in place before you need them

An EPA needs to be put in place while you have the capacity to make that decision.

If someone loses capacity without an EPA, their family may need to apply to the Family Court for someone to be appointed to manage their affairs. That can involve lawyers, medical evidence, additional expense and considerable stress at an already difficult time.

Putting your EPAs in place early means you can decide for yourself who you trust to act for you if the need ever arises.

2. Choose your Attorney – and a backup – carefully

Your Attorney may one day have significant responsibility for your finances, property, health or care, so think carefully about who is best suited to the role.

It could be your spouse or partner, an adult child, sibling or trusted friend. The person you choose for your Property EPA also does not necessarily need to be the same person you choose for your Personal Care and Welfare EPA.

It is also worth considering a Successor Attorney who can step in if your first choice dies or becomes unable or unwilling to act.

3. Don’t assume your family can automatically make decisions for you

This is one of the biggest misconceptions around EPAs.

Your spouse is not automatically your Attorney. Your adult children do not automatically become your decision-makers. And being listed as someone’s “next of kin” does not, by itself, give you legal authority to act for them.

If there is someone you trust to make decisions for you if you lose capacity, you need to give them the appropriate legal authority.

A will and an EPA do different jobs

A simple way to think about it is a will speaks when you die. An EPA speaks when you cannot.

Your will sets out what should happen after your death. Your EPAs help protect you while you are alive.

So, this Wills Month, checking your will is a great place to start, but it is also worth asking yourself: if something happened and I could no longer make decisions for myself, who would I want to step in?

And have I actually given them the legal authority to do it?

The Grayson Clements team can help you put Property and Personal Care and Welfare EPAs in place, choose appropriate Attorneys and Successor Attorneys, and ensure they work alongside your wider estate planning – or review your existing arrangements.

Get in touch to learn more