Four important legal documents essential in most people’s lives include having a:
·Will;
·Enduring Powers of Attorney (Property and Personal Care and Welfare);
·Family Trust; and
·Relationship Property Agreement.
Will
To ensure your hard earned assets are protected and your loved ones are provided for, having a Will gives you peace of mind that such assets will end up where you wanted them to. As your life and circumstances change, you should update your Will to reflect your position (i.e. getting married, divorced, having children, adopting, spouse/partner dying). If you don’t have a will when you die, then the law deals with your property in a predetermined way (called “intestate”), which in all probability will likely differ from what you intended to have happen with your assets. Dying intestate will also incur significantly greater legal fees on your estate,
Enduring Power of Attorneys
While you are alive and have mental capacity everyone should have an Enduring Power of Attorney confirming who you seek to make decisions for you pertaining to your personal care and welfare and property matters. Whilst people grow older, with greater risk of no longer being able to look after their own affairs, it’s even more important to ensure you have Enduring Powers of Attorney in place. Should you lose mental capacity by having a stroke or developing an illness (i.e. dementia) and you didn’t already have Enduring Powers of Attorney documentation in place, then your nearest and dearest would need to make Applications in the Family Court on your behalf, under the Personal Property Rights Act 1988 at greater legal expense.
Family Trust
Prior to entering into a relationship, for the purpose of protecting your assets from a potential claim being made against you (by a future partner under Property (Relationships) Act 1976,) setting up a family trust and transferring your assets into a family trust has much merit. When done so, in conjunction with entering into a section 21 Agreement with your new partner, would provide greater protection in identifying each of your respective separate property assets/liabilities, whilst identifying what constitutes “relationship property” during your relationship and how each of your respective assets/liabilities would be divided should your relationship end via separation or death.
Property Relationships Agreement
Whether you are contemplating a new relationship, already in an existing relationship or intending to separate, you need to seek legal advice about having a Property (Relationships) Agreement to accommodate your respective circumstances. Having such an agreement prepared for you by an experienced relationship property lawyer, will not only protect your assets/liabilities but will save thousands of dollars by avoiding lengthy and costly litigation expenses (not to mention stress), if you don’t make the time and effort to enter into such an Agreement.