The Importance of Enduring Power of Attorney for Dementia
An EPOA (Enduring Power of Attorney) is argueably one of the most important legal tools in New Zealand if someone develops dementia. It allows a person to choose in advance who can make decisions for them if they lose mental capacity (before it happens).
This needs to be set up as early as possible, before dementia progresses too far The person must still have legal mental capacity at the time they sign the EPOA.
If someone with dementia: forgets to pay rates, falls for a scam or refuses necessary medical care but no longer understands the situation, the EPOA allows their chosen person to step in legally and protect them.
Property EPOA
The Property EPOA covers money and assets. This allows your chosen person (called your attorney) to:
- Pay bills and manage bank accounts
- Manage KiwiSaver, investments, or pensions
- Sell or manage a house
- Deal with WINZ, IRD, insurance, banks
- Protect against financial exploitation
You can choose:
Whether it starts immediately, or
Only when a doctor confirms you’ve lost capacity
With dementia, capacity often declines gradually so this EPOA allows someone to legally step in when needed.
Personal Care & Welfare EPOA
The personal care & welfare EPOA covers health and living decisions. This allows your attorney to:
– Decide where you live (e.g., rest home care)
– Consent to medical treatment
– Speak to doctors on your behalf
– Make care and wellbeing decisions
This only activates once a doctor confirms you lack mental capacity. You can only appoint one person for this role (unlike property, where you can appoint more than one).
Why this matters with dementia
Dementia affects:
- Memory
- Judgment
- Financial decision-making
- Understanding of consequences
Without an EPOA:
Family cannot automatically manage finances.
Banks may freeze accounts.
Decisions may require going through the Family Court, which is slow and expensive.
An EPOA prevents that.
What an EPOA does NOT do
It doesn’t transfer ownership of assets.
It doesn’t override a will (that only applies after death).
It doesn’t allow the attorney to act however they like. They must always act in the person’s best interests.
