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What is a power of attorney and an enduring power of attorney?

Why you need it, and what the difference is.

Why do I need to do this?

Life isn’t always predictable and circumstances can change, so it's important to reflect on where you’re placed financially.

This includes considering the financial management support you will need - like who you trust to make decisions on your behalf when you can’t, and how you can formalise this arrangement.

Power of attorney.

There are two types of power of attorney: A general power of attorney and an enduring power of attorney. These are legal documents that mean you (donor) can appoint an individual(s) or a trustee company (attorney) with permission to manage your financial affairs and assets. This arrangement can only be established while you are mentally healthy and aware.

Selecting the right person to be your attorney is important as you need to ensure they will act in your best interest whilst making decisions on your behalf. It is important to seek legal advice when establishing a general power of attorney or enduring power of attorney and make sure you and your attorney understand what responsibilities you each have.

What’s the difference between a general power of attorney and enduring power of attorney?

A key difference is that an enduring power of attorney remains in effect even if you (as the donor – the individual who is providing power to an attorney to make decisions on your behalf) were to lose mental capacity. A general power of attorney ends if you (as the donor) lose mental capacity.

General Power of Attorney (POA):

  • Is a legal document that provides specific powers to an attorney chosen by you, usually for temporary purposes. For example, you may be planning a trip overseas or will be away from home for an extended period and you need someone you trust to help manage your finances
  • Enables you to still manage your finances, but with your attorney’s support
  • Is established while you can still make decisions for yourself
  • Can start at any time as you instruct and ends once you lose mental capacity and are unable to make decisions for yourself.

 Enduring Power of Attorney (EPOA or EPA):

  • Is a legal document that provides a power of management and/or guardianship to an attorney chosen by you, usually for longer term purposes
  • Can be set up while you have mental capacity and are still able to make decisions for yourself. You can choose an EPOA to start:
    • When you lose mental capacity and are unable to make decisions, or
    • When you are still able to make decisions for yourself. If you choose this option, the EPOA continues to stay in effect if you were to become mentally incapable
  • Ceases when you pass away
  • There are two types of EPOA’s, (1) property, and (2) personal care and welfare
    • EPOA for property enables the attorney to make decisions about your money. At Westpac, the term ‘property’ means everything the customer owns and may include bank accounts, credit cards, lending, investments, managed funds and a safety box
    • EPOA for personal care and welfare enables the attorney to make decisions about your health and welfare

If you do not have an EPOA, and you become mentally incapable and can no longer make decisions for yourself, your family will need to make an application or get a lawyer to assist with an application to the Family Court. They can ask the Court to make decisions for you or appoint someone to make those decisions.

At Westpac, an EPOA must be in place for property to be able to operate another individual's accounts and other banking related facilities.

Let us know once it's set up.

When you are ready for the POA or EPOA to start, make an appointment with a Westpac branch. You can book an appointment with a local branch  or by giving us a call on 0800 400 600, weekdays 7am to 8pm or, weekends 8am to 5pm. 

What to bring to your branch appointment:

  • Identification and proof of address for the individuals attending the appointment. Here is a list of acceptable ID

  • The original or a certified copy of your general power of attorney or enduring power of attorney document. If a certified copy is being brought to the appointment, it must have been certified in the last 90 days following the requirements in our  Trusted Referee Reference Sheet

  • Where possible, a copy of a signed certificate of non-revocation (a document certifying that a power of attorney has not been revoked). If you don’t have this, we are able to provide one to be signed by the attorney in the appointment
  • In some circumstances, supporting evidence such as a medical report may need to be provided. For example, if the donor (account holder) becomes mentally incapable. We will let you know about any supporting documents needed after our discussion with you.

Additional support.

The NZ government’s pages for family and whanau have comprehensive information on EPOAs including sections on what an EPOA is, what your attorney can decide, what happens if you don’t have one, how to set one up, where to get help and more.

We've got information on how to stay safe and where to get advice on elder financial abuse and dealing with financial abuse.