Year: 2018

Everything you own forms part of your estate.  Estate planning usually means organising what will happen to your estate after you die, however it should also include any matters that require attention within your lifetime (for example, a plan for managing your estate if you become incapacitated or unwell).  How much needs to be done for your estate plan will depend on your particular circumstances.

For many people, a properly drawn will and an Enduring Power of Attorney will be all that is required for an effective estate plan however there can be additional matters to consider.  For example, transferring control of a small business or family trust.  An estate plan should also consider the potential for any challenge to your will under family provision legislation.  This can be especially important in a blended family situation.

It is important to discuss your estate plan with a solicitor, even if you think it is simple.  The right solicitor will be able to ensure that everything in your estate is effectively dealt with and that all necessary steps are taken to reduce the risk of litigation or other problems arising for the people who are to benefit from your estate.

If you would like estate planning advice, contact Althea at Hornsby Wills and Probate on 0410 485 277 or althea@hornsbywillsandprobate.com.au

A Power of Attorney is a document in which you can give another person the authority to control your legal and financial affairs.  This person is called your ‘Attorney’.   An Attorney can be authorised to enter contracts for you, access your bank accounts and sell your assets.  It can be useful to appoint an Attorney in a number of situations:

1. If you are overseas and would like someone to manage things for you while you are away.
2. If you would like another person to handle a particular transaction on your behalf.
3. If you want your spouse to be able to deal with accounts and assets that are held in your name.
4. In case you become incapacitated or otherwise lose the ability to manage your affairs because of an illness such as dementia (this type of appointment is called an Enduring Power of Attorney).

Powers of Attorney can be prepared to suit the circumstances for which they are required.  For example, you can make a general appointment allowing your spouse to take over all your affairs if you are no longer able to manage them yourself or you can make a power that only enables your Attorney to sell your house for you while you are overseas.

The person giving a Power of Attorney is known as the principal.  An Attorney is required by law act in the principal’s best interest and keep reasonable accounts records of the principal’s money.  They must also follow the lawful directions of the principal and will be bound by the terms of the document appointing them.

If you need a Power of Attorney, it is important to have one properly drawn to ensure that it is valid under the Powers of Attorney Act 2003 and works only in the circumstances you want.

If you would like advice about a making a Power of Attorney, or other estate planning matters, contact Althea at Hornsby Wills and Probate on 0410 485 277 or by email: althea@hornsbywillsandprobate.com.au

In New South Wales, you can appoint an Enduring Guardian under the Guardianship Act 1987 to make medical and lifestyle decisions for you if you are unable to make them for yourself.  Any person can be appointed as your Enduring Guardian except for a paid carer.

If you appoint an Enduring Guardian you can authorise them to make decisions about where you live, what medical treatment you receive as well as other lifestyle matters. If you wish for a person to handle your financial or legal affairs you must appoint them under a Power of Attorney, which is a separate document.

If you have particular wishes about medical treatment or care, appointing an Enduring Guardian enables you to discuss those wishes with that person. You can also place specific directions or limitations in the document appointing them.

If you do not have an Enduring Guardian and are unable to make medical decisions for yourself, another person close to you will make decisions for you. The Guardianship Act 1987 sets out who can make decisions in these circumstances and this is your spouse (including a de facto spouse) or if you do not have a spouse, your carer or a close friend or relative.

Appointing an Enduring Guardian is particularly important if you do not have a spouse or if your spouse may not be available to make decisions for you. By appointing an Enduring Guardian, you ensure that the person who makes decisions for you is the person of your choosing and you have the opportunity to discuss with them your wishes about what kinds of treatment you may or may not wish to receive. This can bring peace of mind at any age but becomes quite important as you get older.

If you would like to appoint an Enduring Guardian or if you need advice about other estate planning matters, contact Althea at Hornsby Wills and Probate on 0410 485 277 or by email: althea@hornsbywillsandprobate.com.au