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What happens if you lose capacity without an EPA?
Your family cannot simply step in to manage your affairs. They must apply to the Family Court for orders. This is expensive, slow, and invasive.
The court process.
Without an EPA, the Protection of Personal and Property Rights Act 1988 applies. The court must be satisfied that you lack capacity and that orders are necessary.
Property Manager
Manages financial affairs
Bank accounts, property, investments, paying bills - all financial matters.
Welfare Guardian
Makes personal care decisions
Where you live, medical treatment, daily care - personal and welfare decisions.
Why this matters.
Time
Court applications take months. During this time, no one has authority to act. Bills go unpaid. Decisions can't be made. Care arrangements stall.
Cost
Legal fees for court applications can be significant. Ongoing management also costs more under court supervision than under an EPA.
Privacy
Court proceedings become part of the record. Your financial situation and personal circumstances are examined in detail.
Control
The court decides who manages your affairs. It may not be the person you would have chosen. Family disputes can complicate matters further.
EPA vs Court Order.
| Aspect | With EPA | Court Order |
|---|---|---|
| Setup time | Days | Months |
| Cost | One-off fee | Thousands in legal fees |
| Who decides | You choose | Court decides |
| Oversight | Minimal | Ongoing court reporting |
| Privacy | Private | Court record |
The difference is stark. An EPA is straightforward to set up, taking days rather than months. A court application takes significantly longer and costs more - during which nothing can happen.
Who can apply to court?
Family members, social workers, or other interested parties can apply to court for orders. But the court decides who to appoint, not the applicant.
If family members disagree about who should be appointed, the court resolves this. Family conflict can extend the process and increase costs significantly.
Common complications
- Multiple family members want to be appointed
- Family disagrees about care arrangements
- Concerns about potential conflicts of interest
- Professional manager appointed instead of family
The message is clear.
Setting up EPAs while you have capacity is one of the kindest things you can do for your family. It's also one of the most practical things you can do for yourself.
Learn About EPAsKey Takeaways
Without an EPA, family must apply to court for authority to act
Court applications are expensive and take months
The court decides who to appoint, not you
Ongoing court oversight adds cost and complexity
EPAs let you choose who acts for you in advance
Setting up EPAs is a gift to your family
Related Guide
Don't let this happen to you. Follow our guide to setting up your EPAs.
Read the Choosing Your EPAs GuideRelated Reading
Enduring Powers of Attorney explained: Property vs Welfare
New Zealand has two types of EPA covering different aspects of your life. Understanding the difference helps you plan properly.
When a Family Member Loses Capacity: Your Legal Options
If someone you love has lost capacity without an EPA, you need court authority to help them. Here's what's involved and how we can help.