Wills and Enduring Powers of Attorney (EPAs) are often something we plan to tackle “someday.” Whether we feel too young, too healthy, or simply too uncomfortable to think about it now, that someday can easily become never. But these are among the most important documents you’ll ever sign—not just for yourself, but for your loved ones who may have to manage your affairs or care for you when you cannot.
Wills
A Will outlines your wishes after you pass, including who inherits your assets and who manages your estate. This person/s—your executor/s—are legally responsible for ensuring your instructions are followed.
If a person dies without a Will or their named Executor is unable or unwilling to act, and their Estate value is over $15,000, then it may be appropriate to apply for Letters of Administration under the Administration Act 1969. Your next of kin or a trustee corporation would need to apply to the High Court to be appointed as the Administrator, and if granted, they will manage your Estate affairs. This can mean costly and stressful legal proceedings for grieving loved ones.
Items to consider for your will:
- Who will look after my children or pets when I pass?
- Who will I leave my assets to when I pass?
- Do I want to leave any money to a charity/trust?
- Do I want to setup a Trust when I pass or gift money or property to an existing Trust (usually a family Trust)
The above is not an exhaustive list of items to consider, there may be many more, depending on your personal circumstances.
Enduring Powers of Attorney
An enduring power of attorney (EPA) is a legal document giving someone the power to act for you. There are two types of EPA:
- Property
- Personal Care and Welfare
It is a good idea for everyone, no matter your age, to have Enduring Powers of Attorney in place and up to date. These documents need to be done whilst you are mentally capable and soit makes sense to do it as soon as possible.
People tend to think only the elderly are likely to need someone to manage their affairs, but anyone can become mentally incapable at any age, an accident or illness may prompt the need for an EPA.
Property
- More than one “attorney” can be appointed as your Property Attorney
- Without an EPA difficulty can arise in dealing with your property or financial affairs. It may be necessary for your next of kin or a family member to seek a Court Order to act on your behalf.
- Your “attorney” could have powers to, for example, manage your bank account, pay your bills, buy or sell property on your behalf.
- It can be a trustee company.
Personal Care and Welfare
- Only one person at a time can be appointed as “attorney” for your Personal Care and Welfare
- It cannot be a trustee company.
For both Property and Personal Care and Welfare EPA’s, successor attorney’s can be appointed to act if the first appointed attorney/s cannot act.
Items to consider for your EPA:
- Who do I trust to manage my personal finances?
- Who do I want to appoint as my successor attorney?
- Who do I trust to make decisions in relation to my personal wellbeing?
- Who has knowledge of my affairs in order to make appropriate decisions?
- Who knows my wishes in respect of my property and my personal are and welfare?
Choosing an “attorney” needs to be carefully considered. It should be someone you trust and while you can appoint different people to be attorneys for the two different areas,it is important to ensure they are people that can work together.
In summary, a Will and EPA’s are very important documents.
We recommend establishing them if you haven’t, or review them to ensure they still reflect your wishes. You’ll not only protect your future but lighten the load for those you love.
Reach out to our team if you need any support if this area.
