Enduring Power of Attorney: Why Every New Zealander Over 60 Should Have One

Turning 60 is a major milestone. It is a time when many New Zealanders start thinking about retirement, spending more time with family, and enjoying the fruits of their labour. However, it is also the perfect time to get your legal affairs in order.

While most people understand the importance of having a will, far fewer recognise the critical need for an Enduring Power of Attorney (EPA).

A will dictates what happens to your assets after you pass away. An EPA protects you, your assets, and your choices while you are still alive. Here is why every New Zealander over 60 needs to have one in place.

What is an Enduring Power of Attorney?

An EPA is a legal document that allows you to appoint someone you trust to make decisions on your behalf if you lose the ability to do so yourself. In New Zealand, the law recognises two distinct types of EPA:

• Property EPA: This covers your finances, assets, and property. You can choose whether this comes into effect immediately or only if you lose mental capacity. You can appoint one or more people, or a trustee corporation, to manage things like paying your bills, managing investments, or selling your home.

• Personal Care and Welfare EPA: This covers your health, accommodation, and daily care. It only comes into effect if a qualified medical professional assesses you and declares that you lack the capacity to make these decisions. You can only appoint one person for this role, though you can name a successor.

The “Next of Kin” Myth

One of the most common misconceptions is that if you have a stroke, develop dementia, or are involved in a serious accident, your spouse or adult children can automatically step in to manage your bank accounts or make medical decisions. In New Zealand, this is simply not true.

Without an EPA, your loved ones do not have the legal authority to access your individual bank accounts, sell your property to fund residential care, or make definitive choices about your medical treatment.

Why You Need an EPA After 60

Creating an EPA is about retaining control over your future. Here is why it is an essential part of your estate planning:

1. Avoiding the Family Court

If you lose capacity without an EPA, your family must apply to the Family Court to have a welfare guardian or property manager appointed. This process is highly stressful, time-consuming, and expensive. It also means a judge ultimately decides who manages your affairs, and the court-appointed manager might not be the person you would have chosen.

2. Protecting Your Assets and Wellbeing

By selecting your own attorneys, you ensure that someone who truly understands your values and wishes is looking after you. You can even write specific instructions into your EPA, such as requiring your attorney to consult with certain family members or an accountant before making big financial decisions.

3. Peace of Mind for Your Family

Stepping in to care for an ageing parent or partner is already emotionally taxing. Having an EPA in place removes a massive administrative and legal burden from your loved ones, allowing them to focus on supporting you rather than fighting red tape.

Choosing the Right Attorney

The person you appoint will have significant power, so choosing the right attorney is crucial. Legally, they must be at least 20 years old, not bankrupt, and mentally capable themselves.

Look for someone who is exceptionally trustworthy, organised, and capable of making difficult decisions under pressure. It is very common to appoint a spouse, an adult child, or a trusted family friend. You can also appoint different people for your Property EPA and your Personal Care and Welfare EPA to ensure the right skills are matched to each role.

Take Action Before It Is Too Late

An EPA is just as important as a will, but there is a catch. You can only set up an EPA while you still have the mental capacity to understand what you are signing. If you wait until an illness or accident occurs, it will be too late.

Ready to protect your future and your family? The compassionate team at Senior Law Nelson specialises in helping older New Zealanders navigate their estate planning with confidence. Contact us today to book a consultation and get your Enduring Power of Attorney sorted.