Why should you set up an Enduring Power of Attorney before moving into a care home.
Key Takeaway
An Enduring Power of Attorney (EPA) lets you appoint trusted people to make decisions about your care and property if you can’t. Without it, loved ones may need Family Court orders—making transitions slower and stressful. Many care providers may ask for EPAs before admission, so prepare them while you still have capacity.
What is an Enduring Power of Attorney and how does it work?
An EPA is a legal document you sign while you have capacity, naming an attorney to act for you if you become unable to decide for yourself. There are two types of EPA:
EPA for Personal Care and Welfare
This EPA covers your health, treatment, daily welfare and where you live.
Property EPA
This EPA covers money, assets and bills. You can choose for this to start immediately or only if you lose capacity.
Important note: A Personal Care & Welfare EPA only takes effect after a qualified health practitioner certifies you lack capacity. A Property EPA can be set to start either immediately or on loss of capacity.
In summary, EPAs protect your wishes during your lifetime; they are not the same as a Will.
Why is an EPA so important when entering a care home?
Moving into care often involves timely clinical and financial decisions. Having an EPA in place will ensure transitions will be faster, clearer and more respectful of your wishes.
Your Wishes are Respected
An EPA allows you to clearly define who you want to make decisions for you and what those decisions should entail. This means your preferences regarding your care, living environment, and financial management will be honoured, even if you can no longer articulate them. Without an EPA, the Family Court may have to appoint a Welfare Guardian or Property Manager, a process that can be lengthy, costly, and may not align with your specific desires.
Delays and Stress for Your Loved Ones are Avoided
If you suddenly lose mental capacity without an EPA in place, your family, even a spouse or partner, cannot automatically make legal or financial decisions on your behalf. They would need to apply to the Family Court, which can be a stressful and expensive process, causing delays in accessing necessary care or managing your finances. An EPA streamlines this, allowing your chosen attorney to act promptly in your best interests.
Smooth Transition into Care
Many care homes and retirement villages in New Zealand require residents to have both types of EPAs in place before accepting an application. This is because they need to be assured that someone legally authorised can make decisions about your care and cover the associated costs. Having your EPOAs prepared beforehand ensures a smoother, less complicated admission process.
Protection and Peace of Mind
By appointing a trusted individual (or individuals) as your attorney, you gain peace of mind knowing that your personal and financial wellbeing will be looked after by someone who understands your values and will act in your best interests. Your attorney has a legal duty to promote your welfare and protect your interests.
Flexibility and Control
While an EPA is a serious document, it offers flexibility. You can include specific instructions or restrictions for your attorney, specify who they should consult with, and even name successor attorneys in case your primary choice is unable to act.
What decisions can each EPA cover?
To compare, here is a quick guide:
Personal Care & Welfare EPA
Consenting to treatment and procedures
Choosing or changing your care home
Daily welfare (routine care, safety and preferences)
Property EPA
Paying care fees and bills
Managing bank accounts and investments
Selling property if needed to fund care
Common mistake: Assuming your spouse/partner can automatically handle banks and providers—they can’t without the proper authority.
When should you set up an EPA—and who should you choose?
The critical factor with an EPA is that it must be made while you still have mental capacity. Once a medical professional determines you lack the capacity to make your own decisions, it’s too late to create one, and the control shifts to the Family Court.
You can:
Appoint one Personal Care & Welfare attorney (with backups)
Appoint one or more Property attorneys (and specify jointly, severally, or jointly & severally)
Tip: Add consultation requirements (e.g., “consult my children for major decisions”).
At Archer Villages and Care Homes, we strongly advocate for all our residents, and indeed all New Zealanders, to consider putting an EPA in place as part of their future planning. It’s a proactive step that empowers you, protects your loved ones, and ensures your journey into care is as seamless and respectful of your wishes as possible.
How do you set up an EPA?
We recommend seeking legal advice from a lawyer or a trustee corporation to ensure your EPA is correctly drafted and meets all legal requirements. It’s an investment in your future well-being and a gift of clarity and ease for your family.
Step 1: Decide your attorneys. List primary and successor attorneys and how they must act.
Step 2: Complete the official forms. Use the latest government EPA forms for Property and for Personal Care & Welfare. You can complete these forms before your appointment with your lawyer. You can find more information and the official forms at Office for Seniors
Step 3: Get the required witnessing. An authorised witness must ensure that you understand all your options, that you understand what the EPA document means, and that your document meets all the legal requirements.
Step 4: Store and share. Keep copies with your GP, care home, attorneys and key family.
Step 5: Review annually. Update details or instructions after major life changes.
Where can I go for more information
Here are some helpful resources to help you with your journey to setting up an Enduring Power of Attorney
Office for Seniors
Age Concern New Zealand
New Zealand Law Society
The Public Trust
Frequently asked questions
Do I need an EPA to move into a care home?
Short answer: It’s not a blanket legal requirement, but many providers may ask for EPAs before admission so decisions and payments can be managed.
Can my spouse automatically make decisions for me?
No. Banks and care providers usually need formal authority. An EPA (or a court order) is the recognised pathway.
When does a Personal Care & Welfare EPA start?
After a qualified health practitioner certifies you lack capacity. If you later regain capacity, the EPA’s effect can be reviewed.
When does a Property EPA start?
You choose: immediately (convenient for travel/illness) or only on loss of capacity.
Can I include instructions or require consultation?
Yes. You can add binding or advisory instructions, name people to be informed, and set consultation rules.
Common mistakes to avoid
Waiting too long. You must sign while you still have capacity.
Vague instructions. Be specific about preferences and who to consult.
No successors. Always name backups.
Poor document hygiene. Keep signed copies where people can find them.
