When we plan for retirement and beyond, our minds tend to focus on getting our finances in order and sorting insurance.

These things can provide peace of mind and help protect you and your family in the future.

But have you thought about what might happen if you end up unable to make decisions for yourself? Say you were to have a stroke, serious accident, brain injury, or develop dementia. Unless you have an Enduring Power of Attorney (EPA), you shouldn’t assume your family can access your money, even if it’s needed to pay for your care.

Vanessa Dudley, General Manager – Retail at Public Trust, says everyone over 18 should have an EPA.

“EPAs form a key part of protecting your health and wellbeing and being prepared. You never know when you may need someone to make decisions on your behalf if you're unable to make them yourself,” Dudley says.

EPAs are legal documents that allow a trusted person you’ve chosen to make decisions when you no longer can about your property, finances and personal care and welfare.

“EPAs let you choose and give you peace of mind,” Dudley says.

There are two types of EPAs: personal care and welfare, and property. Both need to be made while you’re mentally capable.

A personal care and welfare EPA is only activated if or when you are deemed (by a suitably qualified health practitioner) mentally incapable of making decisions about your care and welfare. This could be from a serious accident or injury, or through a condition such as dementia. The person appointed is called your attorney and they can make decisions about where you live and the healthcare treatment you receive.

A property EPA includes instructions for when it will take effect. This could be at a time you choose (while you are mentally capable) or when you lose mental capacity. For example, as you get older, it may be useful if there is someone who can help you to take care of your property and finances if you start to feel overwhelmed.

A trustee corporation such as Public Trust can be appointed as a property attorney, but only one person can be appointed a personal care and welfare attorney.

EPAs let you choose and provide peace of mind. Setting up EPAs before they’re needed gives you peace of mind about your future. You’ve nominated a person or trustee corporation you trust, ahead of time.

EPAs can make things easier. If you no longer have the mental capacity to make decisions and you don’t have EPAs in place, someone will need to apply to the Family Court to have the right to make these decisions on your behalf.

“Making a Court application can be expensive, take time, and be stressful for loved ones,” Dudley says. “A spouse does not automatically have the right to take over things, and the person the Court appoints may or may not be someone you would have chosen.”

EPAs can help avoid time delays. A good example of this is if an older loved one suddenly ends up in hospital, Dudley says. They may need to move from the hospital into an aged care facility for the first time. Many aged care services require a person to have EPAs before entering care. This means your loved one would have to get an EPA before they could move.

If they are no longer mentally capable, a court application is required to put a property manager or welfare guardian in place (this is a different role to an attorney under an EPA).

“This can take time and mean your loved one could remain in hospital until things are sorted,” Dudley says.

EPAs can help you be proactive about future planning. Accidents or illness that cause a person to lose mental capacity can strike at any age, so it makes good sense for Kiwis to have EPAs in place.

“While no one can predict the future, an EPA is a wise back-up plan, and increasingly important as we age,” Dudley says.