A power of attorney NZ residents use is a document in which you (the donor) give another person, your attorney, authority to act for you. General and limited powers cover legal and financial tasks and stop if you lose mental capacity. Enduring powers of attorney (EPAs) keep working if you become mentally incapable. They come in two kinds: property, and personal care and welfare.
What is a power of attorney in New Zealand?
A power of attorney is a signed legal document that lets someone else make decisions or sign things on your behalf. The attorney does not need to be a lawyer, and you decide how much authority to give.
Enduring powers are governed by the Protection of Personal and Property Rights Act 1988. It sets out who can be appointed, how an EPA starts, and what an attorney can and cannot do. General and limited powers are simpler arrangements and are not designed to survive incapacity.
An attorney must act in your interests and within the powers you gave. Having one in place matters because, without it, nobody can automatically step in if you are unwell, abroad or unable to decide for yourself.
What is the difference between a general and a limited power of attorney?
A general power of attorney gives broad authority over your legal and financial matters. A limited power of attorney covers only a defined task or period. Both are non-enduring, so both stop if you lose mental capacity.
| Feature | General | Limited |
|---|---|---|
| Scope | Wide range of financial and legal matters | One task or a short list of tasks |
| Typical use | Managing your affairs during a long stay overseas | Signing for a property sale, or dealing with one bank matter |
| If you lose capacity | Ends | Ends |
To hand over everything for a period, look at a General Power of Attorney. For one transaction, a Limited Power of Attorney keeps the attorney's authority narrow.
What is an enduring power of attorney (EPA)?
An enduring power of attorney continues to operate if you lose mental capacity. That sets it apart from general and limited powers, which lapse just when you may need help most.
New Zealand law provides two separate types of EPA:
- EPA for property: money, assets and financial affairs.
- EPA for personal care and welfare: health, accommodation and daily life.
They are separate documents because they work differently. They start differently, carry different limits, and you may want different people in each role. Many people appoint one trusted person for finances and another for welfare decisions.
How does an enduring power of attorney for property work?
An EPA for property lets your attorney deal with your financial affairs. That includes paying bills, managing bank accounts, handling investments and looking after your home or other assets.
When can it be used?
You choose. You can allow your attorney to act straight away, for example if you want help while still capable. Or you can specify that they may act only once you lose capacity. If it starts on incapacity, a medical certificate is normally needed to confirm it.
What oversight is there?
Your attorney must act in your interests and keep your property separate from their own. You can ask for information about your finances to go to another person you name. The Family Court can also be asked to review how an attorney is acting. The Enduring Power of Attorney (Property) is the document for this type.
How does an enduring power of attorney for personal care and welfare work?
An EPA for personal care and welfare lets your attorney make decisions about your health care, where you live and your day-to-day routine. Unlike the property EPA, it only takes effect once you are mentally incapable, as confirmed by a medical certificate.
It has firm limits. Your attorney cannot make some decisions for you, including consenting to marriage. They also cannot refuse consent to standard medical treatment designed to save your life or prevent serious harm to your health.
Your attorney must consult you as far as practicable, encourage you to take part in decisions, and act in your best interests. The Enduring Power of Attorney (Personal Care and Welfare) covers this type.
Which power of attorney NZ type is right for you?
It depends on how long you need help and whether you are planning for incapacity. Match the document to the situation:
- Overseas travel or a short absence: a general or limited power, depending on how much you want to hand over.
- A single sale or transaction: a limited power.
- Illness, ageing or long-term planning: an enduring power.
- Running a business while away: a general or limited power, but remember it ends if you lose capacity.
If you are planning for the future, think about both property and welfare. An EPA for property will not let anyone make care decisions. An EPA for personal care and welfare will not let anyone touch your finances. Many people put both in place together.
How do you make a power of attorney in NZ?
- Choose your attorney or attorneys. Pick someone you trust who is willing and able to act. A family member can be appointed. For a general power or an EPA for property, you can name more than one attorney and say whether they act together or separately. An EPA for personal care and welfare allows only one attorney at a time, but you can name a replacement who steps in if that person cannot act.
- Decide the scope. For a general or limited power, set out the powers and any time limit. For an EPA, choose the type and when it starts.
- Complete the document. Fill in names and details clearly, without gaps.
- Sign it with the right witness. An EPA must be witnessed by an authorised person, such as a lawyer or registered legal executive, who confirms you understand what you are signing. Your attorney also signs.
- Tell your attorney and store it safely. Make sure your attorney knows where the original is, and give copies to people who may need them.
You can use a template or arrange it through a professional. The formal requirements are the same either way. Costs vary, so check current fees before you start.
How do you change or revoke a power of attorney?
You can cancel a power of attorney if you change your mind or a relationship breaks down. Do it in writing with a formal Revocation of Power of Attorney, rather than relying on a spoken instruction.
After signing, tell your attorney and any third parties who have relied on the document, such as your bank. Ask them to remove it from their records, and keep a copy of the revocation.
You can change or revoke an EPA while you still have mental capacity. If you have lost capacity, you generally cannot do it yourself, and the matter would go through the Family Court. That is a good reason to review your documents while you are well.
Your next step
Start by deciding whether you need short-term help or long-term protection. For a specific task or absence, choose a general or limited power. To plan for future incapacity, make both enduring powers, then tell your attorneys where the signed documents are kept.
