When we plan for retirement and beyond, our minds tend to focus on getting our finances in order and sorting insurance.

These things can provide peace of mind and help protect you and your family in the future.

But have you thought about what might happen if you end up unable to make decisions for yourself?  Say you were to have a stroke, serious accident, brain injury, or develop dementia.

Unless you have an Enduring Power of Attorney (EPA), you shouldn’t assume your family can access your money, even if it’s needed to pay for your care.

At HealthCarePlus we have you covered through our partnership with Public Trust.  Through them you can create an EPA  and with our Member Offer you can get 20% off the cost too.  So please take the time to read the article below and learn more about EPAs and whether or not you need one.

Do you have an Enduring Power of Attorney?

 Well, according to Vanessa Dudley, General Manager – Retail at Public Trust, everyone over 18 should have an EPA.

“EPAs form a key part of protecting your health and wellbeing and being prepared. You never know when you may need someone to make decisions on your behalf if you're unable to make them yourself,” Dudley says.

What is an EPA?

Like a will, it’s a legal document. EPA stands for Enduring Power of Attorney. And while that sounds all very ‘Law & Order’, we promise it isn’t. An EPA is simply a way to nominate someone to make decisions on behalf of look after your well-being, property and finances, in the instance you’re medically unable to – or if you decide it’s too much to manage yourself. The person you choose is known as your ‘attorney’.

“EPAs let you choose and give you peace of mind,” Dudley says.

There are two types of EPAs: Personal Care and Welfare, and Property.  Both need to be made while you’re mentally capable.

 A Personal Care and Welfare EPA is only activated if or when you are deemed (by a suitably qualified health practitioner) mentally incapable of making decisions about your care and welfare. This could be from a serious accident or injury, or through a condition such as dementia. The person appointed is called your attorney and they can make decisions about where you live and the healthcare treatment you receive.

 A Property EPA includes instructions for when it will take effect. This could be at a time you choose (while you are mentally capable) or when you lose mental capacity. For example, as you get older, it may be useful if there is someone who can help you to take care of your property and finances if you start to feel overwhelmed.

 A trustee corporation such as Public Trust can be appointed as a Property attorney, but only one person can be appointed a Personal Care and Welfare attorney.

What are the benefits of EPAs?

EPAs let you choose and provide peace of mind. Setting up EPAs before they’re needed gives you peace of mind about your future. You’ve nominated a person or trustee corporation you trust, ahead of time.

EPAs can make things easier. If you no longer have the mental capacity to make decisions and you don’t have EPAs in place, someone will need to apply to the Family Court to have the right to make these decisions on your behalf

“Making a Court application can be expensive, take time, and be stressful for loved ones,” Dudley says. “A spouse does not automatically have the right to take over things, and the person the Court appoints may or may not be someone you would have chosen.”

EPAs can help avoid time delays. A good example of this is if an older loved one suddenly ends up in hospital, Dudley says. They may need to move from the hospital into an aged care facility for the first time. Many aged care services require a person to have EPAs before entering care. This means your loved one would have to get an EPA before they could move.

If they are no longer mentally capable, a court application is required to put a property manager or welfare guardian in place (this is a different role to an attorney under an EPA).

“This can take time and mean your loved one could remain in hospital until things are sorted,” Dudley says.

EPAs can help you be proactive about future planning. Accidents or illness that cause a person to lose mental capacity can strike at any age, so it makes good sense for Kiwis to have EPAs in place.

“While no one can predict the future, an EPA is a wise back-up plan, and increasingly important as we age,” Dudley says.

Common questions: 

1. Who should you appoint as an attorney?

When choosing your attorney(s), ask yourself:

• Are they a good listener and communicator?
• Do they give good advice and make sound decisions?
• Do they have time to make decisions for you?
• Do they have experience making important financial or welfare decisions?
• Do they have your best interests at heart?

2. Can you change an EPA?

You can update or cancel your EPA, as long as you’re still mentally capable. Review your EPAs every few years or when major life events happen (for example, the death of one of your named attorneys).

3. How do you set up an EPA?

EPAs are legal documents. To set one up, you can use a lawyer or professional trustee services organisation like Public Trust.

“Before making an appointment, we recommend reading up about EPAs, how they work, and have a think about who you’d like to name as your attorneys,” Dudley says.

“Getting EPAs sorted could be one of the most important decisions you make,” she says.

What are some real-life examples of how EPAs help? 

Let’s say you needed to move from your house to a retirement villa, but it was a bit overwhelming to manage by yourself. Your attorneys would then help you find something appropriate, and to suit your budget. If you needed to sell your home to do this, they’d oversee that too.

Another example? Perhaps you’ve had a niggly hip for a while and an operation was the best option. If you weren’t able to, your attorney for PCW would make the necessary arrangements – doctors, surgeons, hospitals, insurance, etc. – and you could relax knowing that the big stuff was taken care of.

One more... It’s the end of financial year and this time around you have a few more tax obligations than usual. If your mental clarity wasn’t what it used to be and you struggled with facts and figures, your attorney for property could simply take responsibility for your tax return and liaise with your accountant on behalf of you to get the job done.

Just so you know, an EPA doesn’t necessarily mean you won’t have a say. You can give as much or as little authority as you want and your attorney is required to include you in their  decision-making s as much as possible.

Until 8 December 2024, Public Trust is offering 20% off wills, enduring powers of attorney and statement of wishes. Plus automatically enter the draw to win one of ten $1,000 vouchers.