News
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- May 2016
- April 2016
- February 2016
- January 2016
- November 2015
- October 2015
News
The truth about why you need an enduring power of attorney
February 25th, 2020
The importance of an enduring power of attorney is often overlooked because people believe that their spouse or next of kin will be able to look after their affairs if they were to lose capacity. The truth is, it would be very difficult for your loved ones to deal with your affairs if they are not appointed as your attorney.
Let’s use the example of Jane and Tom:
• Jane and Tom are in their mid 50’s.
• Tom works full-time and Jane works part-time.
• Jane and Tom own their family home jointly. There is a mortgage over their property.
• Tom is involved in a car accident and suffers serious brain injuries. As a result, Tom is unable to make decisions for himself and requires care on a full time basis.
• Jane is unable to care for Tom on a full-time basis and cover the mortgage repayments. Jane decides to sell the family home and move Tom into a care facility.
• Jane contacts a real estate agent to list the property, however the sale comes to a standstill when Jane encounters a problem; Jane and Tom do not have enduring powers of attorneys.
• As Jane is not appointed as Tom’s attorney, she is unable to sign the contract for sale or transfer documents on Tom’s behalf to effect the sale of the property.
The consequence of not having an enduring power of attorney in place means that an interested party (i.e. family member or friend) would need to make an application to the Queensland Civil and Administrative Tribunal (“QCAT”) to be appointed as the administrator for financial matters and/or guardian for personal and health matters. So in the scenario above, Jane would need to make this application to have the power to sell their property. This process is stressful and can be costly.
If no one is willing to take on this responsibility then the Public Trustee and the Public Guardian may be appointed to take control of your affairs. There is also the risk of these statutory offices being appointed if there is a dispute between family members about who is the most appropriate person(s) to act.
The reality is, any person can unforeseeably lose their capacity at any time during their life. Wouldn’t you prefer to appoint someone who you trust to look after your affairs if this situation were to arise?
If you would like to avoid this problem for relatively little time and money, please do not hesitate to contact us to set up your enduring power of attorney.
Get your affairs sorted today. Contact our Mareeba wills and estate lawyers on 07 4092 3555.
MoreBIG LIFE CHANGES: The effect of marriage, divorce and separation on your will
August 22nd, 2019
There seems to be a misunderstanding about divorce and the appropriate time to update your will or do a new will. You should always have a current and up to date will in place. Waiting for your divorce to be finalised is never a good reason to delay your estate planning.
What’s the effect of divorce on a will?
In Queensland when a person makes a will (“the willmaker”) and then later divorces, any provision appointing the willmaker’s former spouse as executor, trustee and/or guardian will be revoked and taken to have been omitted from the will. Further, any gifts made in favour of the former spouse are automatically revoked upon divorce. All other provisions in a will not relating to the former spouse, generally will remain valid and effective.
As divorce only revokes the provisions to your former spouse in your will and not your whole will, you do not need to wait for your divorce to be finalised to prepare a new will (and I do not recommend that you wait). Whist this example may seem reasonable to many of you, it is important to bear in mind that only upon a formal divorce will those provisions to a former spouse be revoked.
What happens if I am separated but not divorced?
For married couples, separation alone will not revoke a will. In Australia married couples must be separated for a minimum period of twelve (12) months before making an application for a divorce. During the period of separation (which is sometimes many years) if you have an old, outdated will in place gifting everything to your former spouse, he/she may get just that, everything.
What if I don’t have a will?
It is just as bad, if not worse, if you don’t have a will in place and you are recently separated but not divorced. If you do not have a will in place and are legally married at the time of your passing, then under the rules of intestacy your former spouse will get a large portion, if not all, of your estate.
When should I do a new will or update my existing will?
A lot of clients prefer to hold off preparing a new will or reviewing their existing will until their divorce and/or property settlement has been finalised. I do not recommend this. Whist you might feel like you have 101 things to do and your life is chaotic, a new or revised estate plan should be at the top of your “To Do” list.
What other life changing events will affect my will?
The ending of a de facto relationship or civil partnership will also revoke the provisions to a former spouse in a will. So even if you are not married, you should bear this in mind.
Marriage will automatically revoke a will*, unless the will is made “in contemplation of marriage”. I often find, especially for younger clients, that they still wish to make provisions for their siblings or parents even if they are getting married. Usually if their parents have gifted them a sum of money or have provided a guarantee to assist them in buying their first home. If they prepare a will making these provisions for family members and then later get married, and their will has not been made in contemplation of marriage, then these special gifts to family members will be revoked.
*It is important to note that marriage will not revoke the following provisions in a will pre-dating marriage:
- a gift to the person to whom the willmaker is married to at the time of the willmaker’s death;
- an appointment as executor, trustee, advisory trustee or guardian of the person to whom the willmaker is married at the time of the willmaker’s death;
- a will, to the extent it exercises a power of appointment, if the property in relation to which the appointment is exercised would not pass to an executor under any other will of the willmaker or to an administrator of any estate of the willmaker if the power of appointment were not exercised.
Information contained in this article is of a general nature only and is applicable to the current law in Queensland. It is not intended to address the circumstances of any particular individual or entity. Please note that the law in each state and territory may differ. We recommend that you contact one of our experienced wills and estates solicitors to obtain advice about your individual circumstances.
More