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Are you guilty of failing to plan ahead?

<p>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.</p> <p>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.</p> <p>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.</p> <p><strong>1. Is your Will up to date?</strong></p> <p>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.</p> <p>Times when you might want to update your Will include:</p> <ul> <li>Welcoming new grandchildren into your family</li> <li>Marriage, separation or divorce</li> <li>Starting a de facto relationship</li> <li>If your children have remarried or divorced</li> <li>A beneficiary or executor named in the Will dies</li> <li>Death of a loved one</li> <li>If you restructure your affairs for retirement</li> <li>When you buy or sell assets</li> </ul> <p>For more information on how to update your Will, <strong><span style="text-decoration: underline;"><a href="http://planningaheadtools.com.au/prepare-a-will/" target="_blank">click here</a></span></strong>.</p> <p><strong>2. Importance of a Power of Attorney</strong></p> <p>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.</p> <p>Situations where a Power of Attorney is useful and can be activated:</p> <ul> <li>If you take an extended overseas trip</li> <li>If you want someone else to look after the day-to-day demands of your financial affairs such as paying bills or collecting income</li> <li>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 </li> </ul> <p>For more information on how to appoint a Power of Attorney, <strong><span style="text-decoration: underline;"><a href="http://planningaheadtools.com.au/make-a-power-of-attorney/" target="_blank">click here</a></span></strong>.</p> <p><strong>3. Appointing an Enduring Guardian</strong></p> <p>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.</p> <p>Decisions that an Enduring Guardian can make on your behalf:</p> <ul> <li>Where you will live</li> <li>What services are provided to you</li> <li>What medical treatment you receive</li> </ul> <p>For more information on an Enduring Guardian and how to appoint one, <strong><span style="text-decoration: underline;"><a href="http://planningaheadtools.com.au/appoint-an-enduring-guardian/" target="_blank">click here</a></span></strong>. </p> <p>If you want the peace of mind that comes from having your affairs in order, it pays to get organised now. Visit <strong><span style="text-decoration: underline;"><a href="http://planningaheadtools.com.au/" target="_blank">planningaheadtools.com.au</a></span></strong> 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 <strong><span style="text-decoration: underline;"><a href="http://www.planningaheadtools.com.au" target="_blank">planningaheadtools.com.au</a></span></strong>, or phone the Planning Ahead Tools Information line on 1300 887 529.</p> <p>THIS IS A SPONSERED FEATURE </p> <p>Related links:</p> <p><span style="text-decoration: underline;"><strong><em><a href="file://localhost/x-note/::blank:finance:legal:2014:11:estate-planning:">A quick guide to estate planning</a></em></strong></span></p> <p><span style="text-decoration: underline;"><strong><em><a href="file://localhost/x-note/::blank:finance:legal:2014:11:why-you-need-to-appoint-a-power-of-attorney-now:">Why you need to appoint a power of attorney now</a></em></strong></span></p> <p><span style="text-decoration: underline;"><strong><em><a href="file://localhost/x-note/::blank:finance:legal:2014:11:tips-for-preparing-a-will:">Tips for preparing a will</a></em></strong></span></p> <p> </p>

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What is a trustee?

<p>In its broadest sense, a trustee can refer to any person who holds property, authority, or a position of trust or responsibility for the benefit of another. Although the strictest sense of the term is the holder of property on behalf of a&nbsp;beneficiary, the broader sense includes people who serve, for example, on the&nbsp;Board of Trustees&nbsp;for an institution that operates for the benefit of the general public.</p><p>An executor of a will, charged with carrying out the wishes of a person after they die, may also find that includes taking on the role of trustee, for example, for children or grandchildren. A beneficiary can act as a trustee, however a sole beneficiary cannot carry out such a role.</p><p>Types of trusts – Trusts may be created for a variety of reasons such as tax-effective estate planning or to provide ongoing support for a beneficiary, or benefit a charity. Alternatively, trusts may be set up as result of awards made by the Courts.</p><p>There are several different types of trusts with each having a particular purpose:</p><p><strong>Children’s trusts</strong> – These are generally created in wills and are&nbsp;administered for children until they reach the age of 18 or older as determined by the provisions of the will. These trusts can be created to take effect if one or both parents die, and can help to prove tax-effective income to the children.&nbsp;</p><p><strong>Trusts for beneficiaries with a disability</strong> – These trusts are&nbsp;administered for the lifetime of someone who cannot manage their own affairs. Benefit is the key word and the trustee has to be sympathetic to all needs, yet maintain investment security.</p><p><strong>Life estates</strong> – These trusts are set up to provide accommodation and/or an income stream for the lifetime of a close friend or relative. They are often used by people who have remarried and want to provide ultimate ownership of assets to their children rather than their spouse.</p><p><strong>Discretionary testamentary trusts</strong> – These are created by a will, and give the trustee the discretion to split the income between a family group for a period of time. Ultimately the assets are given outright to these people. Although changes in taxation laws may have an impact on these trusts, they are currently tax-effective because the trustee can vary the income paid depending on how much other income the beneficiary receives.</p><p><strong>Charitable trusts</strong> – You may wish to provide long term income benefit to a charity such as for a scholarship or medical research, rather than giving an immediate gift.</p><p><strong>Appointing a trustee</strong> – Trustees can be appointed via the express terms of a trust instrument, statute, or by the courts. Many people appoint a friend or relative as their executor and/or trustee. You need to keep in mind that this is an important personal responsibility that can be time-consuming, challenging and require considered and complex decision-making.</p><p>As such it can also be worthwhile looking at appointing a professional trustee with the expertise, experience and independence to provide these services for you.</p>

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