It’s one of those jobs many of us put off: writing or updating a will. Usually, it stays somewhere on the to-do list between sorting out the garage and booking the dentist.

There are two important legal documents worth having in your toolkit: a will and Enduring Powers of Attorney. They do quite different jobs:

• Your will looks after things after you die.
• Your Enduring Powers of Attorney (EPA) help look after you while you are still alive.

What happens if you can’t make decisions yourself?

We tend to associate losing capacity with getting older, but an accident, illness or injury can happen at any stage of life. An EPA allows you to choose someone you trust to make certain decisions for you when needed.

There are two types:

• Property EPA – covering financial matters such as bank accounts, bills, investments and property.
• Personal Care and Welfare EPA – covering decisions about your care, healthcare and where you live if you become mentally incapable of making those decisions yourself.

The person you appoint is called your attorney, but they don’t need to be a lawyer. Usually it is a partner, family member or trusted friend. Think of an EPA as a little like an insurance policy; you hope it never has to be used, but if something unexpected happens, having it in place can make life much easier for those around you. Importantly, family members do not automatically have authority to make decisions for you. Without an EPA, a Family Court application may be needed.

And when you die?

That is when your will takes over, and your attorney’s role comes to an end. Your will records what you want to happen to your estate and appoints an executor to carry out those wishes.
Your will records:

• Who receives your money, property and possessions;
• Gifts to family, friends or charities;
• Arrangements for younger beneficiaries; and
• Who you would like to act as guardians for your children.

Without a valid will, your estate is distributed according to New Zealand law, which may not reflect what you would have wanted.

It is also important to review your will when life changes. Marriage, separation, children, grandchildren or changes in your financial circumstances are all good reasons to take another look. One important point is that marriage or entering a civil union will usually revoke an existing will, unless it was made in contemplation of that marriage or civil union. If you have a family trust, it can also be useful to leave your trustees a memorandum of guidance setting out your wishes for the future.

A little planning goes a long way

Putting a will and EPAs in place isn’t about focusing on what might go wrong. It is about making life easier for the people you love, making your wishes clear and choosing who you trust to make important decisions when you cannot. And once they are signed and safely tucked away, you can happily go back to ignoring the garage!

Want to find out more and need some assistance with estate planning? Contact our friendly team at Chapman Jones Law.

Chapman Jones Law
11D Wynyard Street, Devonport
09 445 6225
info@chapmanjones.co.nz
chapmanjones.co.nz