The Importance of Estate Planning - Planning your Will

Posted by Author Central on July 12th, 2022

What is an Estate Plan?

An estate plan records what you want to be done with your assets after your death.

It can include documents such as:

  •           your will
  •           a testamentary trust (as part of your will)
  •           superannuation binding nominations

It also covers how you want to be cared for — medically and financially — if you can no longer make your own decisions. This part of your estate plan may be in documents such as:

  •           any powers of attorney
  •           a power of guardianship (giving someone the right to choose where you live and to make decisions about your medical care)
  •           an advance healthcare directive (your needs, values and preferences for your future care)
  •           The documents you choose will depend on your situation and what you’re comfortable trusting others with. Darley Legal will be able to advise you on this.

What is a Will?

Your will is a legal document stating what you want to happen with your assets when you pass away. It is part of your overall estate plan.

Your will covers things like:

  •           How you want your assets to be divided
  •           Who will look after your children if they’re still young
  •           Any trusts you want to set up
  •           Funeral Plans
  •           What money you want to be donated to charities, if any

What is a Power of Attorney?

A Power of Attorney is a legal document stating that you give someone else the legal right to look after your affairs for you. It is important to nominate someone you trust that is financially responsible and will be there when you need them. The power of attorney allows someone to make financial decisions for you. It is usually for a specified time. For example, if you are overseas and cannot manage your affairs at home.

If you are unable to make decisions yourself, the general power of attorney becomes invalid and you will need an enduring power of attorney.

What is an Enduring Power of Attorney?

An enduring power of attorney (or EPA) allows someone to make financial and legal decisions for you if you become incapacitated. If you become unable to make decisions yourself, enduring power of attorney will still be valid.

What is a Medical Power of Attorney?

This allows someone to make medical decisions for you if you ever become unable to do so yourself. It doesn’t allow them to make other kinds of decisions such as financial decisions.

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Author Central

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Author Central
Joined: July 4th, 2022
Articles Posted: 38

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