Understanding Wills and enduring power of attorney
Wills and enduring powers of attorney (EPOAs) are two of the most important documents you’ll ever put in place. A Will ensures your wishes are followed after your death, while EPOAs allow someone you trust to make decisions for you, while you are alive, particularly should you lose mental capacity.
While it’s tempting to leave this kind of planning for later, putting these documents in place early gives you and your family peace of mind.
What is a Will?
Your Will sets out who should receive your assets after you die and who will manage the process (your executor). It can also include your wishes for your funeral and name a guardian for your children if they’re under 18.
You don’t need to be wealthy to make a Will. Even if you only have a KiwiSaver account, it’s worth having a Will in place to avoid delays, stress, and unnecessary legal costs for your loved ones.
Why you need a Will
Without a Will, your estate will be dealt with under the Administration Act – which might not reflect what you would have wanted. For example, some of your assets could pass to family members you may not have chosen to include.
You should consider making or updating your Will when:
- You buy a home
- You start a business
- You have children or grandchildren
- You marry, separate or re-partner
Wills can be updated at any time and should be reviewed every few years to keep them relevant.
Key things we need to know when drafting your Will:
- Who you want to be your executor
- What assets you own (e.g. home, bank accounts, shares, KiwiSaver, cars, jewellery)
- Who you want to receive your assets
- Who should care for your children (if applicable)
- Your funeral preferences
- What should happen to your digital assets (like social media or email accounts)
Common mistakes to avoid
Homemade Wills often fail to meet legal requirements and can be ruled invalid. Common issues include:
- Not signing or witnessing the Will correctly
- Outdated or missing names
- Not planning for backup scenarios (e.g. if a beneficiary or executor dies)
- Poor storage (e.g. damaged or clipped documents may be questioned by the court)
What is an enduring power of attorney (EPOA)?
An EPOA allows someone you trust to act on your behalf if you’re no longer able to make decisions yourself.
There are two types:
- Personal care and welfare – Covers medical and care decisions. Only comes into effect if you lose mental capacity.
- Property – Covers financial matters. Can be used immediately or only if you become mentally incapable.
You can appoint the same person as both your attorney and executor, but their roles are different and operate at different times (during life vs after death).
Why EPOAs matter
If you don’t have EPOAs and you lose capacity, your family will need to apply to the court to manage your affairs – a costly and time-consuming process. Having EPOAs in place avoids this stress and ensures someone you trust is in charge.
Wills and trusts
Even if you have a family trust, you still need a Will. Your trust only covers assets transferred into it, while your Will deals with everything else – and can also appoint guardians, waive debts, and set out funeral wishes.
How we can help
Getting your Will and EPOAs in place doesn’t need to be complicated or expensive – especially if your affairs are straightforward. We’re here to help guide you through the process and ensure everything is done properly, so you and your family are protected.
If you’d like us to assist you with your estate planning, get in touch with our team on enquiries@armstrongmurray.co.nz or 09 489 9102.
This article is brief and general in nature. You should not treat it as legal advice and should seek professional advice before taking any action in relation to the matters dealt with in this post. Armstrong Murray accepts no liability for losses suffered by any person or organisation who may rely directly or indirectly on this post.
