Enduring Powers Of Attorney – Important Law Changes In NZ
Do you have a permanent power of attorney? Otherwise, maybe read on to see what scenarios might occur in the event of a loss of mental capacity for any reason, be it old age or an unexpected accident or illness. At first, you may wonder, "What is a permanent power of attorney?"
Under an Act of Parliament called the Personal and Property Rights Act 1988, anyone can introduce a power of attorney, known as a permanent power of attorney. This power of attorney is offered in two forms, one for personal care and the other for property matters. With respect to our personal care and well-being, we may only appoint one advisor at a time, but with respect to our property matters, we may appoint two or more if we wish. If you want to know more about the process of an enduring power of attorney in NZ visit trustees.co.nz/private-wealth/family-and-estate-planning/enduring-powers-of-attorney.
The main difference between this type of power of attorney and a "traditional" power of attorney is that, as the word "endure" suggests, a durable power of attorney retains full force and authority if for any reason we lose our mental capacity. Other types of power of attorney expire upon loss of capacity.
If you think you've heard any of this before, you can certainly stop and think for a moment about what happens if for some reason you lose your mental capacity and don't have a permanent power of attorney! The Personal and Property Rights Act governs this situation, and the Act provides for an application to the family court for the appointment of a personal guardian or trustee.