The Importance of Enduring Powers of Attorney (EPA) in New Zealand
Problems of Not Having an EPA
Real-Life Example of Not Having an EPA
Scenario: Jane, a 75-year-old woman living in Auckland, was diagnosed with dementia. As her condition progressed, she became unable to manage her financial affairs or make decisions about her health and welfare. Jane had not set up an EPA before her diagnosis.
Problems Arising:
Financial Chaos: Jane’s bills went unpaid, her bank accounts were inaccessible, and her investments were unmanaged. Her family struggled to pay for her care and maintain her home.
Medical Decisions: Jane needed a crucial medical procedure, but there was no one legally authorized to make decisions on her behalf. The delay caused unnecessary complications in her treatment.
Family Disputes: Jane’s children disagreed on the best course of action for her care, leading to family tensions and a breakdown in communication.
Solution: Jane’s family had to apply to the Family Court for the appointment of a welfare guardian and a property manager, a process that took several months and involved legal fees and court appearances.
Benefits of Having an EPA
Real-Life Example of Having an EPA
Scenario: Tom, a 68-year-old man from Wellington, foresaw the possibility of mental incapacity and prepared enduring powers of attorney for both property and welfare while he was still mentally capable. He appointed his daughter, Sarah, as his attorney.
Benefits:
Seamless Financial Management: When Tom’s health declined, Sarah seamlessly took over his financial responsibilities. She ensured bills were paid on time, managed his investments, and arranged for the sale of his car, which he no longer needed.
Timely Medical Decisions: When Tom needed surgery, Sarah was able to quickly consent to the procedure, ensuring he received timely medical care without delays.
Reduced Stress and Conflict: With clear legal authority, Sarah managed Tom’s affairs without family disputes. The entire family was reassured knowing Tom’s wishes were being respected and his best interests were prioritized.
Steps to Take If an EPA Is Not Prepared
If someone becomes mentally incapacitated without an EPA, their loved ones must take the following steps:
Obtain a Medical Certificate: A doctor must confirm the person’s lack of mental capacity.
File an Application with the Family Court: Forms and medical certificates must be submitted, requesting the appointment of a welfare guardian and/or property manager.
Attend Court Hearings: Family members may need to attend hearings to present their case.
Wait for Court Decisions: The process can be lengthy and stressful, often taking several months.
Resources for More Information
New Zealand Ministry of Justice: Apply for a welfare guardian and Apply for a Property Manager
By preparing an EPA, individuals can ensure that their financial and personal affairs are managed according to their wishes, reducing stress and conflict for their loved ones. It is a crucial step in planning for the future and safeguarding one's well-being and assets.
