Protecting You, Your Loved Ones and Your Legacy

As published in The Q Review Summer/Autumn 2021 Magazine.  Follow the link to Subscribe and receive your FREE copy each quarter!

I think we all owe it not only to ourselves, but even more so to our families and our loved ones, to get our estate plans in order.

Having your estate planning in order not only means your wishes will be carried out, it also means you reduce the stresses and heartache felt by your loved ones at a time that will already be very difficult.

Modern estate planning is not just about what happens when you die. It should also establish a plan for the unfortunate, but not infrequent, scenario where we lose the ability to make financial and lifestyle decisions for ourselves, be it through accident, injury, illness or just old age.

Estate Planning Stage One – Incapacity

The first item on an estate planning agenda is to consider who will take responsibility for your finances, your business and investment interests in the event you are unable to do so yourself.

Choosing the right person to represent you is not only important for your own happiness and wellbeing, but it can also have a significant impact on how your broader estate plans are implemented.

That’s not to mention the importance of ensuring the Government are not the ones making the decisions, which can happen if you have failed to implement a plan.

Enduring Power of Attorney

That’s not to mention the importance of ensuring the Government are not the ones making the decisions…

We start with an Enduring Power of Attorney (“EPA”) which appoints one or more individuals to make financial decisions on your behalf.

A good EPA will also provide for the scenario where your chosen Attorney is unable to act (this means a reserve or fall back Attorney is also appointed within the same document).

Enduring Power of Guardianship

Next is an Enduring Power of Guardianship (“EPG”), sometimes referred to as a Medical Power of Attorney. The difference here is that instead of making financial decisions, your appointed Guardian will make medical and lifestyle decisions on your behalf.

Some individuals will appoint the same person or people for both roles, but often it pays to separate the two.

Entity Succession Rules & Procedures in the Event of Incapacity

Next, if you have trusts, companies, self-managed superannuation funds or other business or investment structures, how they are managed in the event of your incapacity must be considered in detail.

The standard governing rules and documentation commonly used for such entities can’t cater for all considerations and possibilities regarding future incapacity (or death for that matter). Therefore, adjustments to the rules of operation are often required.

See Part 2 of this series regarding Estate Planning Stage Two – Death.

Contact me, Abhishek Puri – Director / Tax Technical Specialist / Senior Client Manager (Perth), today to arrange your FREE, No Risk, Initial Consultation to discuss your Estate Planning requirements.