As we age or face health challenges, it’s important to plan for our future and ensure that our affairs are in good hands. In New Zealand, a Lasting Power of Attorney (LPA) is a legal tool that allows you to appoint someone you trust to make decisions on your behalf if you are no longer able to do so. In this article, I will explain everything you need to know about LPAs, how they work, and why they are crucial for your peace of mind.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney is a legal document that lets you choose someone (called an “attorney”) to make decisions for you when you are unable to do so yourself. It is a powerful tool for managing your finances, healthcare, and personal affairs in case of illness, injury, or incapacity. In New Zealand, there are two main types of LPAs:
- Property (Financial) LPA – This type allows your attorney to manage your financial matters, such as paying bills, handling investments, and managing bank accounts.
- Personal Care and Welfare LPA – This type lets your attorney make decisions about your health, living arrangements, and personal care if you cannot do so yourself.
Why is a Lasting Power of Attorney Important?
Creating an LPA is crucial because it provides a safety net in case you are ever unable to make decisions for yourself. Without an LPA in place, your loved ones might have to apply to the court to gain the authority to make decisions for you, which can be time-consuming, costly, and stressful. By having an LPA, you ensure that the person you trust will be in control of your affairs.
Key Benefits of Having a Lasting Power of Attorney
- Control Over Your Future – You get to decide who will manage your personal and financial affairs.
- Peace of Mind – Knowing that your affairs will be handled according to your wishes, even if you can’t manage them yourself.
- Avoid Court Intervention – Without an LPA, your family may need to go through a lengthy court process to gain control over your matters.
Who Can Be an Attorney?
The person you appoint as your attorney should be someone you trust completely. It could be a family member, friend, or professional, such as a lawyer. Your attorney must be:
- At least 20 years old.
- Mentally capable of making decisions.
- Someone who understands the responsibilities and duties involved.
You can choose more than one attorney and set specific roles for each one, depending on your needs.
How to Create a Lasting Power of Attorney
Creating an LPA in New Zealand involves a few simple steps:
1. Choose Your Attorney(s)
Decide who you trust to make decisions on your behalf. Make sure they are willing to take on the responsibility.
2. Complete the Forms
You will need to fill out the LPA forms for either Property or Personal Care and Welfare (or both). These forms are available from the Office of the Public Trust or online at the New Zealand Government website.
3. Sign the Forms
Both you and your chosen attorney must sign the forms in front of a witness. The witness must be an independent person, such as a lawyer, doctor, or registered legal executive.
4. Register the LPA
Once the forms are completed and signed, you will need to register the LPA with the Office of the Public Trust. This is an important step, as it makes the LPA legally valid. You can register your LPA at any time, even if you’re still capable of making decisions.
5. Keep a Copy of the LPA
After registration, make sure both you and your attorney have copies of the LPA. You should also inform your family and close friends about the document so that they know who to contact if needed.
What Happens if You Don’t Have a Lasting Power of Attorney?
If you don’t set up an LPA and later become unable to make decisions for yourself, your family might have to apply to the court to appoint a guardian or manage your finances. This process can be costly and stressful for your loved ones, and there’s no guarantee that the person you want to make decisions for you will be selected.
How Can You Ensure Your LPA Works as You Intend?
- Review It Regularly – Life circumstances change. Make sure to review and update your LPA regularly.
- Be Clear About Your Wishes – Make your intentions clear to your attorney, so they understand your preferences for both financial and health-related decisions.
- Choose the Right Attorney – Select someone who understands your needs and can act in your best interest.
Conclusion
A Lasting Power of Attorney is an essential part of planning for your future in New Zealand. It ensures that the right person is in place to manage your affairs when you can’t. By understanding how LPAs work, who can act as your attorney, and how to create one, you are taking an important step to protect yourself and your loved ones. Don’t wait until it’s too late—set up your LPA today and enjoy peace of mind knowing that your future is in good hands.