When moving into a retirement village in New Zealand, new residents are usually asked to have an Enduring Power of Attorney (EPA) in place. This may feel like another bit of administration to add to the paperwork, but it is an important safeguard for both residents and their families.
Why an EPA is Required
An EPA allows you to appoint someone you trust to make decisions on your behalf if you lose the ability to do so yourself. There are two types:
Property EPA – covering financial and property matters.
Personal Care and Welfare EPA – covering decisions about your health and personal needs.
Retirement villages typically require residents to have valid EPAs in place because they deal with long-term occupation agreements and significant assets. If a resident later becomes unable to sign documents, manage property, or make decisions, the village needs certainty about who is legally authorised to act. Without an EPA, families may face the lengthy and costly process of applying to the Family Court for orders.
Many villages will ask to see copies of the EPA documents before confirming an Occupation Right Agreement (ORA). Some even require confirmation from the resident’s lawyer that the EPAs are current and valid.
Rights of the Occupant
Requiring an EPA does not take away the rights of the resident. In fact, the Retirement Villages Act 2003 and the Code of Residents’ Rights ensure strong protections, which include:
- Independent legal advice – every ORA must be explained and signed off by a lawyer, who also witnesses the resident’s signature.
- Cooling-off period – residents have 15 working days to change their mind after signing an ORA.
- Full disclosure – villages must provide disclosure statements and the Code of Practice, so residents understand their obligations and rights.
Further, an attorney acting under an EPA must always act in the resident’s best interests and can be challenged if they do not.
Summary
For retirement villages, requiring an EPA is about ensuring smooth management if a resident becomes unable to make decisions. For residents, it is an important tool to protect personal wishes and reduce stress for family members. Alongside the rights guaranteed under the Retirement Villages Act, an EPA gives both the resident and the village certainty that important decisions can always be made.
