If asked what legal documents you need as you age, most people think of a Will. However, a Will only deals with your affairs after you pass away. It can be just as, if not more, important to put arrangements in place for your care should you lose mental capacity or the ability to speak for yourself. Acting now, while you are capable, is a far simpler, quicker, and less stressful (and costly) process than the alternative.
What documents do I need to protect my future self?
Enduring Powers of Attorney (EPOA): An EPOA is a legal document that allows you to appoint someone (your “attorney”) to make decisions on your behalf if you become unable to do so. In New Zealand, there are two types of EPOAs: Property, and Personal Care & Welfare. A Property EPOA gives your attorney the authority to manage your assets – such as your home, bank accounts, and other investments. You can decide whether this authority begins while you are still capable or only when you lose capacity. A Personal Care & Welfare EPOA covers decisions about your health and wellbeing, but only comes into effect if you are unable to make those decisions yourself.
You might be thinking, “I’m young, I’m healthy, why do I need this?” While that may be true, life can be unpredictable. Accidents, illness, or even the natural aging process can leave us needing someone to make critical choices for us. Without EPOAs, your loved ones could face lengthy and costly court processes (known as “PPPR Orders”) to gain authority over your affairs.
Advance Healthcare Directive (Living Will): An Advance Healthcare Directive is not a legal document, but it can be a useful way to let your caregivers know your wishes regarding your care should your health deteriorate significantly and you are unable to speak for yourself. Put simply, do you value quality or quantity of life? An Advance Healthcare Directive sets out your wishes in relation to where and how you want to live, your views on medication and palliative care, and whether you wish to be resuscitated. It can provide helpful guidance for your attorney and your doctors.
Your Will: Your Will sets out your wishes for what will happen to your estate (the things you own) when you pass away. It should name your executors (the people who will administer your estate), and detail your wishes regarding your assets, care of any children, and funeral instructions. Wills are surprisingly nuanced and require careful drafting to ensure they do what you intend, both now and in the future. They also must be witnessed according to particular legal requirements to be valid.
It’s important to remember your Will only deals with your personal assets. If you have a Family Trust, separate documentation will be needed to express your wishes as Trustee of the Trust.
All of these documents are best prepared sooner rather than later. If there are doubts as to a person’s mental capacity, they may not be able to create an EPOA or a new Will. Your lawyer can talk with you in detail about what documents may be most suitable for you to assist you to manage your affairs and protect your future self and your family.
How can we help?
If you need to prepare a new Will, Living Will, or EPOAs, or update your current ones, WRMK Lawyers’ experienced team of experienced local life planning lawyers are happy to help.
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