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Life is like a box of chocolates (Law blog)

The Wānaka App

Aspiring Law

08 September 2022, 8:40 PM

Life is like a box of chocolates (Law blog)

Life can be like that. You never know just what you’re going to get, so why not be prepared?


Ask yourself, what would happen if I’m in an accident and unable to make decisions for myself? Or what would happen if I’m suffering from an illness, lose mental capacity, or need someone to take care of my affairs while I’m overseas? Who would you turn to? 



The answer is an EPA. An EPA is a personal representative responsible for making decisions during your lifetime, if you can’t. You appoint an attorney under a document known as an EPA to make significant decisions when you are unable to do so for yourself. There are two types of EPAs – personal care and welfare; and property.


You can appoint the same or different people to be your attorneys for your welfare and property affairs. The most important thing is that you choose people that you trust to keep your best interests at heart. In doing so, you will need to consult the person to ensure they are happy to be your attorney, and they will need to sign the EPA.  


We commonly see spouses or children appointed, but you can appoint anyone of sound mind who is 20 years or older. 


Your attorney/s must always protect your interests and their job is to act with reasonable care and involve you in the decision-making process as much as possible.  

This is how it works


When does it apply?

  • From the time you sign the EPA  
  •  When you lose mental capacity 

Option 1) can be useful if you are going overseas or are temporarily unable to deal with finances, e.g., if you are in an accident.


Who can you appoint? 

  • One or more attorneys 
  • One or more successor attorneys if either or both of your first attorneys are unable to act – recommended  
  • Person/s your attorney must consult or provide information to when they act 

What can they do? 

  • Promote and protect your property interests
  • Manage your bank accounts and investments
  • Pay bills 
  • Sell any chattels or properties 
  • Keep records of each financial transaction they enter on your behalf 

What can they not do? 

  • Benefit themselves or someone else, unless the EPA specifically authorises it or it is allowed by legislation 

Not an exhaustive list 

 

Who decides if you lose capacity?

‘Losing mental capacity’ is determine when you become incapable of making or communicating your own decisions. You don’t need to worry - your attorney cannot simply decide you have lost your marbles and put you in care. Your attorney must have a medical certificate from a qualified medical practitioner to confirm you no longer have capacity before they can act on your behalf.

 

It is also possible to regain mental capacity after a period of incapacity. For example, if you make a full recovery after a medically induced coma, you can take back control of your own affairs once a medical practitioner has confirmed you have regained capacity. The EPA will simply be suspended in case you ever lose capacity again. 


An EPA can be changed or cancelled or revoked at any time, provided you have capacity. You will need to give your previous attorney/s notice if this is going to happen. Otherwise your EPA will come to an end when you die and be replaced by your will (or by the legal system if you don’t.) 


Check out our free online tool to get your EPA in place.