ESTATE PLANNING   What is Estate Planning? In simple terms, it is planning for the future management of your property and wealth, both before and after your death.   A carefully considered estate plan will enable you to maximise the administration and passing on of your assets and wealth when you are incapable of doing so. This can be achieved through asset protection and tax minimisation strategies and preventing costly disputes between your loved ones. The sum effect of which is to provide you with the peace of mind that your assets and wealth will be administered and distributed exactly how you want to who you want.   Appointing your decision makers Estate planning includes appointing person/s and/or organisation/s to make important decisions whilst you are alive (called attorneys and/or guardians) and the administration and distribution of your property upon your death (called executors). As you can appreciate, some of these activities can be complex, time consuming, emotional and frustrating. You should consider appointing professional attorneys/executors to work together with your personal choices.   Estate Planning encompasses some (often all) of the following documentation.   General Power of Attorney This power of attorney is often used when a person is about to travel overseas for a lengthy period of time and the appointor wants to appoint someone to undertake certain activities in their absence. The activities can be unlimited, but are usually restricted to specific activities, such as paying bills, signing of documentation, buying or selling property, accessing bank accounts etc. The length of the appointment is also often restricted to the period of absence.   The General Power of Attorney is automatically cancelled if you lose mental capacity.   Enduring Power of Attorney (Financial) The Enduring Power of Attorney (Financial) is similar to the General Power of Attorney, however it continues, or endures, even if you lose mental capacity.   As the name implies, the person appointed to deal with your affairs, the attorney, can only deal with financial matters. This attorney does not have the power to make decisions relating to your medical needs or lifestyle requirements.   Enduring power of attorneys only end if you revoke them, pass away or one of the jointly appointed attorneys passes away. For this reason, it is wise to clarify that the jointly appointed attorneys can continue to act, even if one of them passes away.   Enduring Power of Attorney (Medical) This power of attorney is used to appoint a person to make decisions relating to your medical treatment in the event that you are temporarily or permanently incapable of doing so.    Wills A Will details how you want your assets and wealth distributed after your death.  A properly drafted Will should provide a tax effective means of protecting and distributing your assets whilst avoiding/preventing costly and traumatic disputes between the people that survive you.    Anyone who is over the age of 18 and has income or assets should write a Will. It is also important to update your Will every 2 to 3 years and if a marriage, divorce, death birth or other circumstance occurs or may occur to you or the beneficiaries under your Will.   You should consider some of the following items when you are about to make a Will:   · make a list of all your assets and debts; · if you own a share or part of a business, find out how to protect your business and your interest in the business by reading MA Legal’s information pages on Shareholder Agreements and Buy/Sell Agreements; · who your dependents are; · who you want the beneficiaries to be and why; · how will your debts be dealt with?; · whether you need an independent medical statement confirming your soundness of mind; · whether you want a professional executor; · consider changing circumstances, in case of birth, death, divorce, marriage; and · make sure someone else knows where your Will is kept!   It is important to keep in mind that:   · jointly held bank accounts and property will automatically pass to the other joint holder upon your death. They do not form part of your estate; · superannuation does not form part of your estate. You should contact your superannuation fund and find out how you are able to make a binding nomination for the distribution of your super upon your death; and · if you are intestate, that is, you have died without making a Will, then your assets will be distributed in accordance with State law.   Preparation and Witnessing of Documentation There are complex laws surrounding the making and witnessing of Wills and Powers of Attorney. To ensure that the documentation is valid and not open to challenge, it is strongly recommended you seek professional legal advice.   M A Legal is happy to advise and assist you with all legal aspects relating to your Estate Planning needs.   For advice or information please contact:   Rex Afrasiabi on rex@malegal.com.au or 0402 054 241   www.malegal.com.au     © MA Legal Pty Ltd 2008   Disclaimer:  This information page has been prepared to provide a summary on certain aspects of Estate Planning in Victoria. Due to its general nature, this page can not and should not take the place of professional legal advice. It is strongly recommended you obtain legal advice on the matters raised in this page.