It has been said that preparing for death is an act of love. Think of it as a gift to those you are leaving behind. It can bring clarity for loved ones during an emotional and challenging time and ensure your wishes are carried out.
It doesn’t have to be a difficult process, so don’t put it off.
- Consider who you want to leave your assets to.
- Financially prepare.
- Sort your paperwork (including digital access to media like Facebook).
- Record any end-of-life wishes you might have.
An Enduring Power of Attorney helps before you die
An Enduring Power of Attorney is a legal document that appoints someone, called your Attorney, to manage your finances and make decisions about your personal and medical care, if you’re unable to do it yourself before you die.
Your property Attorney is the person responsible for paying your bills and keeping your financial affairs ticking over if you become incapacitated. Your Attorney would have the power, for example, to sell your house and invest the proceeds to pay for your rest home care if needed.
Choose your Attorney carefully, there is a very high level of trust involved!
Living Will outlines end of life care
A Living Will or an advanced care plan, sets out in detail how you would like to be cared for when seriously ill. Advanced care plans are often put in place with the assistance of your medical team and tell your team and family what is important to you at the end of your life.
Your Will deals with your assets after you die
Your Will sets out how you would like your assets to be distributed after you die. Everyone should have one. If you don’t have a valid Will, your assets will be distributed according to the law and may not be distributed how you would wish.
Take this scenario
You have a partner and two children. Your furniture, motor vehicle, and personal possessions, plus the first $155,000 of your estate, would go to your partner. The remainder of your estate would be split into thirds. One third would go to your partner and the other two thirds to your children. This could leave your partner without a home to live in, as they would likely need to sell the property to pay the children their share of the estate.
Did you also know that unless you make special provision in your Will for marrying your partner in the future, your Will becomes invalid when you marry? But, if you divorce, or separate from a de facto partner, your Will remains valid!
Modern day families
Blended families can be tricky. Set things out carefully in your Will to avoid family tension and claims against your estate.
Estranged children
If you’re estranged from one, or more, of your children you may not want to include them in your Will. But there can be serious issues with leaving a child, or children, out of your Will altogether. It’s not straightforward so, get legal advice first.
Family members with special needs
If you have a family member with special needs, you may want to make special arrangements for them in your Will. Could they manage their inheritance themselves or would they need help from someone else? Think about who that helper would be and pay attention to how long that job could last for.
Who will carry out your wishes?
Who do you want to carry out the wishes set out in your Will? Be careful if you’re thinking of appointing someone based overseas. Tax residency can result in the estate being liable for tax, including capital gains tax, overseas unless care is taken.
The humble Family Trust.
Family trusts can continue long after your death if you want them to. Your trust can provide for your surviving spouse/partner and dependent family members, but you need to make sure the paperwork is sorted. Take the time to consider what you want to happen when you’re gone and take the necessary steps to make sure it happens.
- Think about who should be making the important trust decisions after you’re gone.
- Make sure the power to appoint or remove trustees has been delegated.
- Are there particular people you would like to be appointed as a trustee or is there anyone you don’t want to be appointed as a trustee?
- Update the Memorandum of Wishes. That is the document that guides the trustees on how you want the trust to operate in the future.
Be gone procrastination
It doesn’t matter whether you’re 28, 48 or 78, don’t put off your estate planning until tomorrow because sometimes, tomorrow never comes.