Wills and Power of Attorney
Having a valid Will is the only way that you can ensure that your affairs are dealt with the way that you would like after your death, and that your assets go to the people you want them to go to. If you do not have a Will, then there is a legislative ‘formula' as to who will receive your assets. On occasions, this ‘formula' can produce unwelcome results in the distribution of a person's assets.
Many people believe that a Will is a very simple matter. However, a truly ‘straightforward Will' is a rare thing. Even for the ‘average' person, there are a number of matters that must be carefully considered.
After a person dies, the family usually need to:
- deal with the deceased's body and making funeral arrangements
- identify what the deceased owned and what debts they had
- collect the assets (e.g. bank accounts, superannuation etc) of the deceased
- pay the debts of the deceased
- distribute the balance of the Estate to the appropriate beneficiaries; and
- tidy up other aspects of the deceased's affairs - lodging a final tax return, advising relevant authorities of the deceased's death
Why have a will?
If someone dies leaving a valid Will, an ‘Executor' will have been appointed who will be able to administer the deceased's affairs. If someone dies leaving a Will, the Executor will distribute the Estate in accordance with the instructions in the Will.
If someone dies without a Will, Territory law provides a procedure where someone may volunteer to take on responsibility to administer the Estate. Such persons must also apply to the Court and are referred to as ‘Administrators'. If someone dies leaving no Will, an Administrator must distribute the Estate according to a formula set down in legislation. On occasions, this can result in unexpected or unfair results, where the Estate is distributed in a manner that the deceased may not have wanted.
For this reason, it is important to have a valid Will.
At Cridlands MB we can assist you with the following:
- administration of estates and intestacies
- drafting wills
- estate planning
- business succession
- trusts - unit Trusts and Discretionary Trusts (often called Family Trusts)
- incorporation of companies
Power of Attorney
A Power of Attorney (‘POA') is a document where one person (‘the donor') gives another person (‘the attorney') the ability to exercise certain legal rights on their behalf.
Examples of the rights that might be given:
- signing contracts and transfers to buy/sell Real Estate
- operating bank accounts
- prosecuting or defending legal proceedings
- In the Northern Territory, it is not possible to give a POA authority to make medical or personal decisions about the donor.
People usually use POAs in two situations:
- the donor wants to give power to the Attorney for a limited time or purpose (for example, to sign documents to buy Real Estate while the donor is overseas); or
- the donor wants to give the Attorney broad powers to handle the donor's affairs in case something happens (for example, a stroke).
A POA ends when the donor dies. A Power of Attorney cannot be used to handle your affairs if you die. For this, you need a Will