Powers of Attorney
General Information (not legal advice)
An "attorney" is a person or organisation appointed by you to make legally-binding decisions on your behalf. The legally-binding effect comes from the fact of the appointment (and the activation of the attorneyship), even if the decision made is different to what you might have made.
There are two types of attorneyships:
An "attorney" is a person or organisation appointed by you to make legally-binding decisions on your behalf. The legally-binding effect comes from the fact of the appointment (and the activation of the attorneyship), even if the decision made is different to what you might have made.
There are two types of attorneyships:
- A General Power of Attorney;
- An Enduring Power of Attorney.
General Power of Attorney
This is a straightforward (2 pages) document, authorising someone else to make property decisions for you (including in respect of trusteeships) during periods of temporary physical incapacity or absence (generally overseas).
The assumption is that you are mentally capable / competent during the times your Attorney acts for you, because as part of the appointment process you must agree to honour / ratify the Attorney's decisions upon your return to physical health / home.
These are of no real use if you become mentally incapable / incompetent.
Cost:
Making a simple General Power of Attorney for an individual at Heartland Law costs $350.00 + GST. We will provide you with a letter when we open a file for you confirming your quote in writing.
This is a straightforward (2 pages) document, authorising someone else to make property decisions for you (including in respect of trusteeships) during periods of temporary physical incapacity or absence (generally overseas).
The assumption is that you are mentally capable / competent during the times your Attorney acts for you, because as part of the appointment process you must agree to honour / ratify the Attorney's decisions upon your return to physical health / home.
These are of no real use if you become mentally incapable / incompetent.
Cost:
Making a simple General Power of Attorney for an individual at Heartland Law costs $350.00 + GST. We will provide you with a letter when we open a file for you confirming your quote in writing.
Enduring Power of Attorney
Enduring Powers of Attorney are named as such because they "endure" beyond the time you are legally capable / competent to make your own decisions.
There are two types of Enduring Power of Attorney:
In either case:
Enduring Powers of Attorney are named as such because they "endure" beyond the time you are legally capable / competent to make your own decisions.
There are two types of Enduring Power of Attorney:
- Care and Welfare; and
- Property.
In either case:
- You can restrict your Attorney's ability to act, and set "Ground-Rules" about how they are to act (for example, by imposing a requirement to consult certain people about the decisions made as your attorney);
- New forms prescribed by law in 2008 have made this a more time consuming, and costly exercise than it was previously. Detailed documents (8 pages), strict signing formalities (possibly involving the need to involve more than one lawyer, if independent legal advice requirements are triggered), calculated to reduce mischievous / devious / dishonest Attorney appointments.
Care and Welfare Attorneyship
- Decisions in relation to your care and welfare - i.e. living arrangements, some medical matters;
- Only comes into force if a suitably qualified doctor assesses you are being mentally incapable of making your own care/welfare decisions;
- One Attorney only (although you can appoint a successor Attorney, to act if the lead Attorney cannot for any reason);
- Attorney must be a real person.
Property Attorneyship
- Decisions in relation to your property (including bank accounts, land / buildings / investments);
- You can choose when it comes into force - i.e. immediately on signing, or only if you are mentally incapable of managing your own property affairs;
- You can appoint more than one property Attorney, jointly or severally (and can also appoint successors);
- Attorney(s) can be a real person or a Trustee Corporation / Maori Trustee.
Cost:
Depends on whether independent legal advise is required (which may involve fees from another lawyer too). Budget on $650.00 - $850.00 + GST for a straightforward individual set of Enduring Power of Attorney documents. We will provide you with a letter when we open a file for you confirming your personal quote in writing.
Why should you have Enduring Powers of Attorney?
- It's very, very, very, very expensive and time consuming to have someone appointed by the Family Court, if you become incompetent / incapable and find you need a Property Manager or Welfare Guardian appointed;
- You can't predict when you're not going to be able to make decisions yourself;
- Health and welfare organisations are more likely to pay attention to the directions of a properly appointed Care and Welfare Attorney;
- If you don't have a Property Attorney, then no-one can legally deal with your interest in your assets. Jointly-owned property cannot be sold, for example;
- Most rest homes require Attorneyships to be in-place; and
- Peace of mind - take the pressure off others if you've been clear about who is "in charge" when you're not able to be.
More Information:
An excellent downloadable brochure can be found on the New Zealand Law Society's website by clicking HERE
An excellent downloadable brochure can be found on the New Zealand Law Society's website by clicking HERE
