By CHRIS GALLOWAY*
So you've got your finances in order. You know where everything is, what comes in and what goes out to whom, when.
But what if you're no longer able to do the job yourself?
That's where Enduring Powers of Attorney come in. They're available through trustee companies such as Public
Trust or through lawyers, and should be seen as the essential companion to a will.
Many people think that if they are no longer capable of managing their own affairs their family could take over for them, or their will could come into effect.
That's not the case - and if you are incapacitated for some reason (perhaps through a serious illness or an accident) important decisions about your care and property could be made by the Family Court.
This will take time and money and the outcome may not always be what you would have wished.
Enduring Powers of Attorney are the only documents that give others the authority to manage your affairs in the event you are unable to.
There are two types of Enduring Powers of Attorney: one for your property and one for your personal care and welfare.
A "property attorney" can manage things to do with your assets for you. How much control they have and when it takes effect is up to you.
You can decide that the Enduring Power of Attorney should come into effect immediately, at a given time, or only if you become mentally incapable.
The conditions can be changed at any time, or cancelled, provided you are capable.
You can choose almost anyone over 20 for the job and even select more than one person.
But it can be a big responsibility and you might prefer to use a professional service so that you know your property will be well managed.
An Enduring Power of Attorney for your personal care and welfare means that someone can make the decisions needed if, for whatever reason, you can't look after yourself.
This Enduring Power of Attorney only comes into effect if you have become mentally incapable.
The person you appoint could be asked to make decisions about any health or personal matter affecting you.
For instance, they may have to make decisions about where you live and who you live with, give consent to operations - and may even have a say in day-to-day things about your diet.
The person chosen for this responsibility (it must be a private person, not an organisation) must be over 20.
You can have a back-up in case the person you name dies or can no longer be your attorney. For instance, you may want your partner to be the one making the decisions, with one of your children as a back-up.
How much does it cost? Lawyers will charge according to the time taken to organise your requirements. Public Trust charges $80 including GST to set up both personal care and property Enduring Powers of Attorney or $50 for just one.
You should also take into account that if you use a professional as your property attorney, fees will be charged for the work they do on your behalf.
Both lawyers and Public Trust will charge for legal and financial services on the basis of the time taken.
More information on Enduring Powers of Attorney (and wills) is available at www.publictrust.co.nz.
* Chris Galloway is with the Public Trust in Wellington.
Links:
www.publictrust.co.nz
By CHRIS GALLOWAY*
So you've got your finances in order. You know where everything is, what comes in and what goes out to whom, when.
But what if you're no longer able to do the job yourself?
That's where Enduring Powers of Attorney come in. They're available through trustee companies such as Public
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