PLANNING ahead for your future legal, financial and health decisions is easier than you may think.
That’s according to the Public Trustee in Tasmania, which runs regular Have you Planned Ahead? seminars. Here are the Public Trustee’s tips on getting ready for the future.
It’s important to plan ahead while you are healthy, aware and in control. If you do not have formal arrangements in place then government legislation or agencies may dictate what will happen to your assets and who will look after your personal affairs.
Making a will
A will is a document that states how you would like your assets to be distributed when you die and the person/organisation (known as your executor) you would like to be responsible for carrying out your wishes.
Even if you do not think you have many assets, you still should have a will and documented plans.
Make sure you get professional estate planning advice rather than using a generic do-it-yourself will kit or relying on the supposed good intentions of others.
If you are not legally qualified to prepare a will, you risk making mistakes, creating uncertainty or losing opportunities for good estate planning. This can result in unnecessary costs and delays in administering your estate.
If you already have a will make sure it is up to date. The Public Trustee recommends you review your will every three to five years, or as circumstances change.
Role of the executor
An executor is responsible for the entire administration of an estate and for carrying out the wishes in accordance with a will.
Some of the responsibilities of the role of an executor are to locate the original will, arrange and pay for the funeral, apply for a grant of probate and act on any special instructions from the deceased.
Being an executor can be complicated and requires legal and financial understanding to do it successfully. That’s why some people prefer to appoint professionals such as the Public Trustee, rather than leaving it to loved ones.
If you have been named the executor of a will you are under no legal obligation to accept this appointment.
If you do not want to take on this role, you can renounce your responsibility to the Public Trustee.
Role of the attorney
Appointing an attorney gives responsibility to do anything with your property or finances that you could do yourself. These broad and general powers include selling property, managing investments and shares, and accessing cash to pay bills.
An attorney is an important position of trust and has a responsibility to always act only in your best interests.
Acting as an attorney is a demanding job filled with wide-ranging responsibilities. It requires a good working knowledge of legal, business, financial and investment matters.
It may be unreasonable to ask a friend or relative to take on this role. That is why many people choose to appoint the Public Trustee as their attorney.
Enduring power of attorney
An enduring power of attorney is a legal document that allows appointed individuals or organisations (known as your attorney) to take care of your financial affairs.
If you lost capacity due to an accident, illness or the onset of an age-related disability, you may lose the ability to operate your bank account, pay bills, sell property or deal with any of your financial affairs.
An enduring power of attorney is operative during your lifetime only (unless declared bankrupt) and automatically ceases when you pass away.
Enduring guardianship
This is a registered document that allows you to appoint an individual/ or individuals (known as your guardian) to make decisions about your health and wellbeing if you are unable to make those decisions.
Your enduring guardian may make decisions such as where you live, what services are provided to you at home and what medical treatments you receive.
Enduring guardianship only comes into effect if or when you lose capacity and will only be effective during that period of incapacity. Therefore, it may never become operational. Regardless, it is important to plan for the future, particularly for unforeseen situations.
To be valid, your enduring guardianship document must be registered. Your guardian can’t be a person who you are involved with in an administrative or professional capacity (say, your GP) and you can’t appoint the Public Guardian or Public Trustee as your enduring guardian. Your guardian should be someone you trust and who knows your wishes and preferences.
