Estate Planning - By Justine Davies

Even young people need to plan for the unexpected.

The Brisbane Supreme and District Court registry receives about 40 applications for letters of administration each month from families whose loved ones have died intestate (without having a will).
“Planning is essential. In business you wouldn’t be without it. Life is much the same.”
Planning, however, involves more than just doing a will. There are six main components of estate planning:

Enduring power of attorney

It is as powerful as the title suggests, a power of attorney is a legal document that authorises some other person (which may be your spouse, another relative or a friend) to legally act on your behalf.
You can nominate this to be not only your financial affairs but your personal and health issues as well.
A power of attorney can be invaluable in keeping a business ticking along, or even simply keeping your investments running smoothly.

Advance health directive

A formal document that allows you to set out your own wishes in terms of future medical treatment. It only comes into effect if you lose your decision-making capacity.
It can be a great way to help take the pressure off relatives who may otherwise have to make difficult decisions, such as prolonging your life when there is no hope of recovery.

Your will

Your will is the legal document that instructs how your assets are to be distributed upon your death.
It also covers issues such as nominating a guardian for your children and potentially setting up a trust to provide for your family over the years. Visit your solicitor to set up your will.

Memorandum of wishes

A document with your will that provides private and detailed financial advice to your executor. Being a confidential document between you and your executor, you can express opinions that you perhaps wouldn’t state in a more public will.

Guidelines for the welfare of family

If you have children, completing a guidelines book to give to the nominated guardians. In this, parents can set out the wishes and aspirations they have for their children. It can include suggestions for the guardian in areas such as activities, schooling, values, religious faith, family contact and residence. While it isn’t a legally binding document, it can provide some very welcome guidance.

Superannuation

Superannuation is not automatically included within your will it is an area that needs special attention.
For most superannuation funds, the payout decision is at the sole discretion of the trustees of the super fund. However, many funds now offer a “binding death benefit nomination”, which allows the member to give a legally binding instruction as to who the money should be paid to.