Estate planning is more than making a Will. It is about making sure the right people can step in if you cannot.
You also need to consider who will make decisions for you if you lose the ability to make decisions for yourself.
In New South Wales, two key documents do this: Enduring Guardianship and Power of Attorney. Each serves a different and important purpose
Enduring Guardianship
An Enduring Guardianship allows you to appoint someone to make health, lifestyle and personal decisions on your behalf if you lose capacity. This can include decisions about medical and dental treatment, living arrangements and care planning, daily care and support services and end of life decisions.
The role only takes effect if you lose capacity and remains in place until you regain capacity or pass away.
Power of Attorney
A Power of Attorney allows you to appoint someone to manage your financial and legal affairs. This can include paying bills, operating bank accounts, signing legally binding documents, managing investments, collecting rent, buying and selling real estate and covering expenses for others.
There are two types:
- General Power of Attorney: used for specific purpose or period while you still have capacity, for example if you are overseas.
- Enduring Power of Attorney: continues if you lose capacity, making it essential for long term planning.
A Power of Attorney operates only during your lifetime.
A Power of Attorney is only valid during your lifetime.
Why it matters
Together, these documents work to cover both personal and financial decisions. Without them, your family may need to apply to NCAT for authority to act on your behalf. This can delay decisions, increase cost and add stress at an already difficult time.
This can be stressful, time-consuming and costly. Putting these arrangements in place early gives you control, reduces risk and ensures your wishes are clearly understood and respected.
How M+E Can Help
Our Future Planning team can assist in preparing clear, tailored documents that reflect your wishes and stand up when needed. For practical advice please contact Lilly Macintyre at lilly@morganenglish.com.au
