Why Estate Planning is so Important
Why Estate Planning is so Important: What Happens When Life Takes a Turn and You Don’t Have a Will or Power of Attorney
You know what they say: when there’s a will, there’s a way. But let’s take this quote at face value: if you don’t have a will, is there a way to protect your estate? The short and scary answer is: not really.
When a person is incapacitated, the only person who will be able to handle their affairs is their legal Power of Attorney. And when a person dies, the only way in which it is decided what to do with their assets is through a will.
This article should hopefully persuade you why you should undertake the process of estate planning, lest there be no one with the legal authority to manage your financial affairs.
What Happens When You Die Without a Will
The court will appoint an administrator to distribute your property by the laws of intestacy. This means that you get no say in who your money goes to, the courts do. It will be appointed to your next of kin: first partners, then children and if you have no living relatives, your asset will be surrendered to the government.
Other problems will arise too: if you have young children and no Will that appoints a guardian to them, their future will be in jeopardy. The decision of what to do with your body will no longer be in your hands. Creating a Will avoids unnecessary family drama and add trauma to an already stressful time.
What Happens When You Are Incapacitated Without a Power of Attorney
Your estate, property and bank accounts are frozen until a court appoints a financial manager under a financial management order. This financial manager has total control over your possessions and can sell them if they decide to and charge ongoing fees.
If your loved ones want to have control over your estate and medical matters, they will need to apply to the Guardianship and Administration Tribunal to be appointed as your guardian. This is a long and expensive process and one which could have been avoided by simply executing a valid Enduring Power of Attorney in the first place.
If you have any questions about navigating estate planning, please do not hesitate to contact me. I am here to help.