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Understanding powers of attorney

A power of attorney is a document appointing someone you trust to make decisions on your behalf or sign documents for you. You are called the donor. The person you appoint to act on your behalf is called the attorney. You should carefully consider whoever you give this power to.

You can name one or more attorneys. If you name more than one, you need to say if they must all agree on all decisions (act jointly) or if any of them can act alone (severally).

There are two main types of power of attorney — an enduring power of attorney (EPOA) and a general power of attorney (POA).

EPOA

An EPOA allows your attorney to continue acting even if you aren’t able to make decisions for yourself. An attorney has certain obligations under this. There are two types of EPOA, one for property, and one for personal care and welfare.

EPOA in relation to property

BNZ only accepts EPOAs in relation to property. This document enables your attorney to make decisions about either:

  • everything that you own including bank accounts, property, and investments; or
  • only a specific part of your property affairs.

An EPOA in relation to property can start when you decide. You can choose for it to start:

  • when you’re mentally capable; or
  • only if you become mentally incapable.

If you choose for it to start when you’re mentally capable, your attorney can continue to act if you become mentally incapable.

EPOAs end automatically when you die.

EPOA in relation to personal care and welfare

BNZ doesn’t accept EPOAs for personal care and welfare, since they aren’t related to the management of your bank accounts or property. This document covers other things like health and wellbeing decisions, and enjoyment of life.

POA

A POA enables an attorney to look after your affairs for you, and you can also continue to manage your own affairs.

It can either be a general power to act on your behalf in all matters, or only on specific issues. For example, signing or executing agreements, contracts, or deeds when you’re going to be travelling overseas for some time.

POAs automatically end when you die or if you become incapable of making decisions.