Here are some things to consider when creating an EPA.

Who to choose

The attorney should be someone you trust to act in your best interests. You can add requirements to the EPA, such as requiring the attorney to consult with certain people or provide information to others. 

Benefits

You can choose whether the attorney can benefit from the EPA, and you can limit how much they can benefit. 

Decision-making capacity

You can specify the type of health practitioner who should assess your decision-making capacity. The Family Court can also decide if someone is mentally incapable.

Extent of the EPA

You can restrict the powers of your Enduring Power of Attorney (EPA) by specifying conditions and limitations on what your attorney can do within the EPA document. This allows you to control which decisions they can make and which areas they need to consult with others on before acting. 

Restricting an Attorney’s Powers

Key points about restricting EPA powers in NZ:

Specific limitations

You can choose to give your attorney power over certain aspects of your finances, like managing specific bank accounts, while restricting their ability to sell property without further approval. 

Consultation requirements

You can designate individuals your attorney must consult with before making significant decisions, even if the final decision rests with them. 

Reporting obligations

You can specify that your attorney needs to provide regular reports on their actions and financial transactions. 

Decision-making capacity considerations

If you want your EPA to only come into effect when you lose decision-making capacity, you can specify this in the document. 

Other important considerations

Seek legal advice

When creating an EPA, it's crucial to consult with a lawyer to ensure your restrictions are clearly defined and legally sound. 

Balance restrictions with practicality

While you can add limitations, be mindful of not making it too difficult for your attorney to manage your affairs effectively. 

Review and update regularly

As your circumstances change, you can always review and update your EPA to adjust the level of authority granted to your attorney. 

More things to think about

Enduring Powers of Attorney (EPAs) can have disadvantages, including:

• Selecting the wrong attorney

The person you choose as your attorney may not act in your best interests, or they may abuse their role. 

• Joint appointments

If you appoint more than one attorney, they may not be able to work well together

• Incapacity

If you become mentally incapacitated, your attorney can't make significant decisions for you without a health practitioner's certification. 

• The process can be daunting

The process of setting up an EPA can be time consuming if you do not know what you are doing, and expensive if you are on a benefit or low income, although some Community Law Centres may do this if you are in these circumstances.  

ª Your attorney may not be monitored

Unless you specify, your attorney won't be monitored or guided on how to act. Expecting someone in your life to look after another person might be your wish, but it might not be implemented or not implemented in the way you wanted or expected.

• Unwinding transactions

Only a property manager can unwind transactions, not an attorney operating under an ordinary power of attorney or an enduring power of attorney.

To reduce the risk of problems, you can: 

• Choose a trusted relative, friend, solicitor, or accountant
• Restrict your attorney's powers
• Require your attorney to consult with certain people.  However, if they do not do this it will require someone else to take the matter to Court.
• Require your attorney to provide records of financial transactions.  However, again, if they do not do this it will require someone to take the matter to Court.

Choosing someone to be your Attorney

When choosing someone to be your Enduring Power of Attorney (EPA), you should consider:

Trust
You should be able to trust them completely to act in your best interests.

Commitment to supported decision-making
They need to clearly understand their role and the requirement to engage in supported decision-making if you lose capacity.

Skills
They should have the skills to manage your affairs, such as keeping records and accounts. 

Location
While not a legal requirement, they should preferably live in Aotearoa New Zealand and be able to get to you if needed. 

Communication
They should consult with you as much as possible. 

Professionalism
If you choose a professional, such as a lawyer or accountant, they may charge a fee. 

You can appoint a family member, friend, or professional, and you can also appoint more than one attorney in relation to an EPA for property. If you have more than one attorney, you can choose whether they act jointly or severally. 

You should never feel pressured or manipulated into appointing an attorney. 

For more information about choosing a person to be your EPA click here:  Choosing Someone to be your Attorney under an EPA