While not as certain as death and taxes, illness and injury are often something we’ll have to deal with as we age.
And it’s an issue more and more Australians will be facing over the next decade, with a huge wave of baby boomers retiring.
Estate planning is often more than planning for what happens after death, prudent estate planning also takes into account illness and injury while we’re still alive.
Making provisions for mental incapacity is something that should be seriously considered. This can be done by appointing an enduring power of attorney.
An enduring power of attorney is a legal document that allows you to appoint an agent to take control of your financial affairs on your behalf.
Planning this appointment means you’ll have the control you want over your affairs.
Without an enduring power of attorney in place, decisions regarding your finances may fall to an unsuitable person; alternatively, it may be left to a state tribunal to determine control.
While there are few restrictions on the appointment, it’s not a decision to be taken lightly.
The person appointed should be someone you trust and someone who understands the decisions you’d take in various circumstances.
Appointing a spouse or partner is common; this can save that person a great deal of stress if finances or property were frozen by the incapacity of their partner.
Making an enduring power of attorney at an early stage can mean more protection against an unexpected injury or illness.
The time to consider and take action is when you are still healthy because situations that require an enduring power of attorney can often happen without warning.
And often when it becomes obvious that mental capacity is dwindling, it’s too late to have an enduring power of attorney signed.
If you’re looking for continuity in the event of illness or injury, an enduring power of attorney could provide it.
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL / ACL 224543. This information is general in nature and readers should seek professional advice specific to their circumstances. Need help with your financial your financial future, we think we’re Australia’s top financial adviser.
