What is a Will?
A will is a legal document which sets out how you would like your assets to be distributed after your death. It may also include directions such as specific burial requests or the appointment of a guardian for any children. Anyone18 years and older can make a will.
Why have a Will?
If you own assets and die without a will the Court will appoint a person or institution to be your representative and the property will be distributed according to rules laid down by the law. This may result in people receiving your property who you may not have wanted to. It often also results in uncertainty and distress for those people you may have wished to protect.
Is it important to have legal advice before making a Will?
In the majority of cases, yes. Certain formalities must be followed for a Will to be legally binding. In some cases, there is a possibility that the terms of a Will can be challenged after death. Areas which you should consider and take advice on are:
- Whether anyone could challenge your Will after your death
- The effect of a marriage or de facto relationship on your Will
- Protecting your children’s inheritance in the event of a second marriage or relationship
- How you ensure personal items go to a particular person
- Providing a life interest to a particular person with the property in question to ultimately pass to another person
- Whether you should you have a Trust
What is an Enduring Power of Attorney?
An enduring power of attorney enables you to appoint someone to manage your own affairs if for some reason you are unable to do so.
There are two types of enduring power of attorney:
- A power of attorney in relation to your property
- A power of attorney in relation to your personal care and welfare
A Property Enduring Power of Attorney allows you to appoint someone else, provided they are over the age of 20, to act on your behalf in relation to either all your property or just part of your property. You may appoint more than one person to be your property attorney and can limit the control they have over your assets if you wish.
You are able to make an enduring power of attorney in relation to property which comes into effect immediately, at a given time in the future or only if you become mentally incapable.
A Personal Care and Welfare Enduring Power of Attorney allows you to appoint someone to make decisions about how you are cared for if you are mentally unable to look after yourself because of serious illness or accident.
You may only appoint one personal care and welfare attorney and usually this would be a close family member or friend whom you trust to make the best decisions for you. This power of attorney only comes into effect if you become mentally incapable.
As long as your are mentally capable of doing so you can cancel or change your enduring powers of attorney at any time
Why Have Enduring Powers of Attorney?
Enduring powers of attorney enable you to choose who you would like to be responsible for your assets and to make decisions for your care in the event that you should become mentally incapable. If this were to happen and you did not have powers of attorney the Family Court would appoint persons to do this on your behalf and it may be someone you do not know or someone whom you would not have liked to be entrusted with your affairs. There would also be additional costs to you or your estate.
Property enduring property powers of attorney are also useful if for example you are going to be out of the country and need to entrust someone else to attend to property matters in your absence.