As the busy holiday season is fast approaching, it is important to get your estate planning documents in order now – before leaving it too late.
Conversations around estate planning can be uncomfortable. End-of-life plans and who gets the family home after you are gone, can be difficult to talk about.
But casting to your mind to making decision now, can leave your family with less of a mess, if you unexpectedly lose mental capacity or pass away.
Life is already busy, and between November and January, it only gets more hectic. Between family gatherings and planned holidays, travel interstate, overseas or on the road, there seems to be hardly enough time to get to everything that we plan for the season.
Before all the holiday festivities get underway, it’s a good time to ensure your family and loved ones are protected if something were to happen.
Your Enduring Power of Attorney
An Enduring Power of Attorney puts someone in charge of making decisions about financial and personal/health decisions (if and when you cannot make them yourself).
Financial powers include accessing bank accounts, selling property and coordinating taxation affairs.
Personal/health powers include making decisions for you and your lifestyle; such as your accommodation, personal services and medical treatment.
Make sure you prioritise your time get this important document in place, before you head overseas or go on a road trip.
If for example, you become stuck overseas or in trouble, you may need to have one place so that the people you have nominated can help you with your financial affairs back in Australia.
By having these documents in order can relieve family stress and avoid the wrong people making decisions for you.
Your Will
Most of us intend to make a Will or up-date our existing Will.
However, in our busy schedules, we are often time-poor leading us to put it on the backburner, or forget altogether.
If you need to make a Will or you know your existing Will is out of date (e.g. your executors are your elderly parents or you have guardians for your now adult children, etc.), there is no better time to get everything organised than now.
If you have put off naming an executor for your estate, the holiday season is a good time to have that conversation.
The executor is responsible for overseeing the administration of your estate. This includes ensuring that your last wishes are honoured, arranging probate, paying your creditors, and distributing assets to your listed beneficiaries.
Each time you revisit your estate planning, ensure that the executor of your estate is still able and willing to act on your behalf.
Relationships change over time. The people closest to you today may not always be in your life. Your listed beneficiaries under your Will may not be the ones who you wish to benefit from your estate. Perhaps you have had a following out, or your asset structure has since changed, which prompts reconsideration.
If you plan to gather with extended family this holiday season, you may notice that things have changed. For example, your once-healthy parents may suddenly seem older and more fragile. There may be new spouses, in-laws, children, grandchildren, and stepchildren. Some beloved family members may not even be with you anymore.
If you are the child of a senior, it may be time to have a heart-to-heart about your parents’ future. If they have been reluctant to have a conversation about it before now, it could be a good way to open that dialogue while protecting their best interests.
Do I need to engage a solicitor to draft my documents?
Estate planning is something that everyone knows they should do eventually but is often put off. It may not be the most comfortable topic to bring up to your loved ones.
However, this often-overlooked task doesn’t have to be as time-consuming and painful as you may make it out to be.
It is always best to engage a solicitor to prepare your Will and Enduring Power of Attorney on your behalf. If a Will or Enduring Power of Attorney is poorly drafted because it is home-made or not executed properly, there is likely to be additional legal costs.
With the availability of off-the-shelf Wills, online Wills and post office and DIY Will kits, it would be easy to be lured into thinking that there is nothing much to it. In fact, there are a lot of things that can and do go wrong if not done correctly.
These costs are likely to outweigh the cost of having a solicitor draft your documents in the first place. A solicitor can make sure they are done properly and that you walk away with appropriate advice surrounding any potential risks to your estate (claims, challenges, etc).
If not now – when?
Despite our best intentions, tragedy can strike during the holidays. If it does, having a recent, up-to-date estate plan could help save your loved ones added stress or confusion during an already tragic time.
By getting your affairs in order now, you will bring peace of mind into the holiday season, knowing that you have provided for your family the best you can.
You can then focus on starting the new year with confidence that your wishes have been adequality documented.
If you need help getting your estate planning affairs in order, or would like advice on whether your estate and family are adequately protected, please feel free to contact us today.
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