Are you guilty of failing to plan ahead?
In order for things to run smoothly in life, planning is key. Although it may be a topic you’d prefer to sweep under the rug, as you age it's even more essential to plan and put in place arrangements that ensure your wishes are respected for medical, financial and lifestyle decisions . Interestingly, though, many Australians are failing to adequately plan ahead.
The results of a recent Newspoll survey found 59 per cent of people aged 50 to 64 do not have a Power of Attorney in place, 69 per cent do not have an Enduring Guardianship in place and one in five people have Wills that are not up to date.
From updating your Will to appointing an Enduring Guardian, here we run through three of the most important steps to help you plan ahead successfully.
1. Is your Will up to date?
Your Will is one of the most important documents you will create in your life and sets out who will receive your assets when you die. If your Will is not up to date and your circumstances have changed, you risk your assets being distributed in a way that does not reflect your current wishes and the assets you own.
Times when you might want to update your Will include:
- Welcoming new grandchildren into your family
- Marriage, separation or divorce
- Starting a de facto relationship
- If your children have remarried or divorced
- A beneficiary or executor named in the Will dies
- Death of a loved one
- If you restructure your affairs for retirement
- When you buy or sell assets
For more information on how to update your Will, click here.
2. Importance of a Power of Attorney
Do you have an up-to-date Will in place? If so well done, however, planning ahead doesn’t end there. If you’re after peace of mind, you also need to look at appointing an Enduring Power of Attorney. In its most basic description, an Enduring Power of Attorney allows you to appoint the person(s) of your choice the legal authority to manage your financial affairs if you no longer able to. Your Power of Attorney has the authority to sign legally binding documents on your behalf in circumstances where you are unwell or have lost the capacity to make decisions.
Situations where a Power of Attorney is useful and can be activated:
- If you take an extended overseas trip
- If you want someone else to look after the day-to-day demands of your financial affairs such as paying bills or collecting income
- When you don’t want to burden a loved one with the responsibility of looking after your financial affairs, you can appoint a legal professional to do the role for you
For more information on how to appoint a Power of Attorney, click here.
3. Appointing an Enduring Guardian
Financial and business affairs are the two main reasons people plan ahead, however, have you considered what will happen if you lose the capacity to make lifestyle and medical decisions? An Enduring Guardian is someone you appoint to make lifestyle, health and medical decisions for you when you have lost the capability to do so.
Decisions that an Enduring Guardian can make on your behalf:
- Where you will live
- What services are provided to you
- What medical treatment you receive
For more information on an Enduring Guardian and how to appoint one, click here.
If you want the peace of mind that comes from having your affairs in order, it pays to get organised now. Visit planningaheadtools.com.au a NSW Government website providing information and advice about how to plan ahead for future legal, health and financial decisions by making a Will, Power of Attorney and appointing an Enduring Guardian. Follow the simple steps for the planning ahead documents at planningaheadtools.com.au, or phone the Planning Ahead Tools Information line on 1300 887 529.
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Related links:
A quick guide to estate planning
Why you need to appoint a power of attorney now