An Enduring Power of Attorney (EPA) is a legal document which allows a person, known as the donor, to appoint an attorney to act on their behalf. This type of document gives the attorney the power to make decisions regarding the donor's affairs in the event that the donor is no longer capable of doing so. In New Zealand, EPAs are regulated by the Enduring Powers of Attorney Act 1996.
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The EPA allows the donor to give certain powers to their attorney, including decisions about their property and financial matters. It also gives the attorney the power to make decisions about the donor's health and welfare, such as consenting to medical treatment. EPAs can be used as part of an overall estate plan, or simply to provide someone with the ability to manage your affairs if you become incapacitated.
In New Zealand, EPAs are increasingly being used as an alternative to guardianship orders, which can be a lengthy and expensive process. When creating an EPA, it's important to consider the powers the attorney is being given and to ensure that the donor's wishes are clearly expressed. The attorney must agree to act in accordance with the donor's wishes and must not act for their own benefit.
It's also important to consider who the attorney should be. It's often best to appoint someone who is trusted and reliable, such as a family member or friend, or a professional such as a lawyer. The attorney must be 18 years or older and must not be bankrupt.
