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10 key questions about wills & EPAs - answered!
Andrew Stubbs • Nov 26, 2019

What would happen to your loved ones if something suddenly happened to you?

Not surprisingly, it's a question many of us tend to avoid.

It's just too hard to remove the emotion from a situation where you imagine you're not around anymore.

And making clear decisions in the best interest of those you love is difficult unless you're able to look objectively at everything and everyone that is closest to you. That is, until you get a 'wake-up call'. It may be an accident, an illness or something else…

But why wait for some alarming incident to prompt you into action? After all, not everyone is 'lucky' enough to get a wake-up call where they live to tell the tale. For some, such unexpected events don't involve any 'waking up', so to speak.

Being prepared for the worst does not mean living your life with a cloud hanging over you. It just makes good sense to have in place:

  • a will ,
  • an enduring power of attorney (EPA) , and
  • an advance health directive (ADH) .

The same as you would take out insurance to protect your business or your car, think of a will as insurance for your loved ones.

Without it, confusion, disputes, and unnecessary conflict can arise at a time when loved ones are grieving. To avoid these issues, it should be priority to get yours written now.

Following are ten key questions and answers to help you take the first step to getting a will drawn up.

  1. Who should make a will - and when?

Anyone over the age of 18 looking to explain what they want done with their assets when they pass away can make a will. Assets include real estate, money, investments, and personal or household belongings.

To draw up a will, you must have the capacity to understand the nature and consequences of the document, be able to exercise free will in the decisions you make within it, and communicate clearly and unambiguously what you want done.

For reasons already explained, it should be a priority for everyone over the age of 18 to make a will. This especially applies to those in middle-age or older, for whom the risks and consequences of not having a will are usually much greater.

  1. Do I have to involve a lawyer?

Depending on the size of your estate, a will may seem like a relatively simple document to draft. However, to be legally binding and ensure that your estate is handled as you wish, it must follow due legal process; complex estates require a good understanding of property ownership laws for instance.

You must sign every page of the will and, at the end of the document, signatures must be witnessed by two independent witnesses.

To ensure you have a valid will that is clear and unambiguous, you must also use the correct terminology throughout the document. This usually requires the expertise of a qualified lawyer.

  1. What should I include in my will?

There are several standard items to include in a will: firstly, you will need to appoint someone (or a number of people) to be executor(s) of your will.

Within the document, you should cover payment for debts and funeral expenses, as well as funeral arrangements. Then provide instructions for the distribution of your assets: these include property, money, possessions, investments, etc.

Either state specific amounts for assets and the full names of beneficiaries or include percentages of total values, as appropriate. 

If applicable, you may also like to include the appointment of a guardian to look after your children, should something happen to you.

Finally, state in your will that it is your last will, superseding any previous wills.

  1. Who should I choose as executor of my will?

When you make a will, you will need to appoint an executor or executors to manage your estate according to your wishes. They are responsible for paying any debts (including taxes) as appropriate and distributing your assets to the beneficiaries, as stated in your will.

Being an executor is normally a very serious undertaking. In addition to the above tasks, executors usually have to organise your funeral; make decisions about your personal finances, belongings, and property; and make arrangements for the care of any dependent children.

Because of this, your executor must be a trusted person - usually a family member or close friend. It's best if they are financially able and good communicators.

Because of the importance of the role, you may like to appoint an alternate executor in case your first choice executor is unavailable.

  1. What is an enduring power of attorney (EPA)?

Enduring power of attorney (EPA) is a legally binding agreement where a person or a small group of people (the attorney or attorneys) manage your financial affairs, personal matters, and health matters, in your best interests. They have the power to do all of the things that you would normally decide on in these areas.

This is necessary if you're unable to look after your own affairs, due to lack of mental capacity. A close family member or other trusted entity then acts as your "attorney". But this does not happen automatically - it requires the necessary legal documents to be signed by the appropriate people.

The agreement can start either immediately or when the appropriate authority decides that you do not have the capacity to conduct your own financial affairs.

Without an EPA agreement, a financial manager may need to be appointed for you by the authorities, depending on your local jurisdiction.

It's always best to arrange your agreement while still in good health, to avoid this happening.

  1. How is EPA different from general power of attorney?

General power of attorney is also a legally binding document. This provides the authority to make financial decisions on your behalf to one or more nominated individuals.

It is not as far reaching as EPA, as the authority to make decisions stops when you no longer have the mental capacity to manage your own financial affairs.

  1. What are advance health directives (ADH)?

You may also want to activate an advance health directive (ADH). This is sometimes called a "living will", "personal directive", "medical directive" or "advance decision".

This legal agreement allows you to plan for your medical treatment or health care in the event that you are too ill or incapacitated to make decisions.

It usually provides for any allergies to medicines or religious beliefs you have, as well as acceptable types of treatment. You can also nominate an "attorney" to make health decisions in your best interests.

Again, it's best to create this document now rather than leaving it to later in life, when your power to make clear decisions could be diminished.

  1. Do these documents need witnesses?

The signing of all powers of attorney documents and health directives require authorized witnesses. This is usually a lawyer, notary public, or justice of the peace. If in doubt, check with your lawyer.

In the case of power of attorney, both you and the nominated attorney need to sign in front of the witness.

With an advance health directive or similar, note that the witness cannot be a beneficiary of your will.

  1. Can I make adjustments to my will or power of attorney?

Providing you are able to make decisions for yourself, you can revoke or amend your will or power of attorney documents at any time.

Indeed, if you haven't written your will to anticipate possible changes, it may be advisable to update it, if your personal or financial circumstances change significantly or unexpectedly after you write it.

As with the original document, this will need to be drawn up in the presence of your lawyer.

  1. What do I do next if I don't have a will?

Nothing you've read here is a substitute for getting proper legal advice when preparing a last will, EPA or ADH.

The above questions should all be discussed with the relevant parties before enacting anything: your doctor should be consulted for health matters and lawyer and/or accountant for financial matters; and your family should also be consulted for whatever affects them directly.

Bear in mind that if you die without a will-this is referred to as dying "intestate"-there are legal guidelines that set out how your assets will be distributed. But it generally creates complications, costs, and delays for all parties. This is especially the case where there have been separations or divorces in the past, and families can be traumatised when-due to the lack of a will-the deceased person's assets are not distributed to those loves ones the deceased 'meant' to leave them to.

Get your will, EPA and ADH in place and then review them regularly, particularly after major life events such as marriage, divorce, births and the passing of loved ones.

If you need assistance with preparing your documents or have any further questions regarding wills, EPAs or ADHs, please contact us.

Why Your Business Needs to Invoice Using the New Peppol Network

By Andrew Stubbs • 05 Jun, 2022
Here's some good news if your business sends invoices to business or government customers. Peppol* is on its way. (That's Peppol, not Peppa .) Ever had this conversation in your business? You or one of your team: "Hello, I'm calling to follow up the invoice we emailed to you last month. It hasn't been paid yet." Customer: "Really? We didn't receive that invoice?" In addition to the time and expense of following up, the cash flow delays create stress for you and they hurt your business. Thankfully, the adoption of Peppol will solve this problem. What is Peppol? Peppol is an obscure acronym for Pan-European Public Procurement On-Line. What's more important than what it stands for, is what it enables. Peppol is an international 'eProcurement' framework for the electronic exchange of information. It creates a standard approach for governments and businesses to structure and exchange information such as invoices and other documents. What Peppol means for you and your business Peppol makes electronic ordering, invoicing and shipping between governments and private companies faster, simpler and more secure. This means your business will get paid faster when dealing with government and larger businesses. In 2019, Australia and New Zealand adopted this platform for e-invoicing which, when implemented, will make 'we never received your invoice' issues virtually impossible. The new e-invoicing system is more secure than email and provides many other benefits. Which countries are adopting Peppol? There are currently 40 OpenPeppol member countries: 32 countries in Europe plus Australia, New Zealand, USA, Canada, China, Japan, Mexico and Singapore. Each country has a Peppol authority. For example, in Australia that's the Australian Tax Office (ATO). Is Peppol already in use? Yes it is. For example, the SuperStream system in Australia-which many businesses are currently using to automate the payment of employee superannuation contributions-is based on the Peppol protocol. How does e-invoicing work? The system connects the accounting systems of all businesses and government departments via the secure Peppol network.  Suppliers generate sales invoices in their accounting systems which are sent to Peppol.

Company Director? Why You Need to Apply for Your DIN

By Andrew Stubbs • 04 May, 2022
If you're a director of an Australian company-or you plan to be-take 5 minutes now to read this article. All existing directors (and intending directors) of Australian companies need to be aware that the Australian Government has announced the introduction of a new mandatory Director Identification Number (DIN) system. (You'll notice the term director ID is also used for DIN.) This system is the initial step in the Modernising Business Registry (MBR) Program which has been established under the Treasury Laws Amendment Act which was legislated by the Australian Government in 2020. More information on the MBR program can be found here . What is the DIN system trying to achieve? The DIN aims to provide accountability and traceability of a director's relationships over time, across all companies and will provide information on a director's involvement in what may be repeated unlawful activity, including illegal phoenix activity. It should also solve the problem of false or fraudulent director identities. What are the key features? It is mandatory for all directors, foreign directors and alternate directors of Australian companies to hold a DIN. The DIN is a unique 15 digit number. The first 3 digits will be 036 which is the identifier for Australia. The last digit is a check digit to help with accuracy when quoting your DIN. Like your tax file number, you will only be issued with one DIN which you will hold for life - even if you cease acting as a director for any period. To obtain a DIN, you will need to prove your identity so you will not be able to hold multiple DINs. Other office holders (e.g. company secretaries) are not required to register. The director is responsible for updating the DIN records for any changes in personal information within 7 days of the change. The director must apply personally. The process cannot be completed by your accountant, lawyer, spouse or executive assistant. There are significant penalties for non-compliance. How do you apply for a DIN? Directors have 3 options for applying. You can apply online from 1 November 2021. To use this method, you must first establish your identity via myGovID (an app you download on your smart device which is different from myGov). Once set up, your myGovID will make accessing a wide range of government services easier. (It's not just for your DIN application). For information on how to set up a myGovID please go to https://www.mygovid.gov.au/set-up During the DIN application process, you will need additional information such as your tax file number (TFN) and your residential address as per ATO records. It would also be advisable to have other personal details such as bank account details, medicare card or a recent income tax assessment available in case these are required. You can also apply by phone ( 13 62 50 ). During the call, the operator will ask for the identity documents you would have used to obtain your myGovID (passport and driver licence) as well as the additional information listed above. These details will be confirmed with the records held on existing government databases and, assuming the details agree, your DIN will be issued. Or you can apply by mail, but this is not recommended because the process for doing this seems vague ("Write to us") which means you can probably expect a lengthy process of certifying documents and coping with the vagaries of the postal system. One of the other two methods would be a better choice. When will you need to apply for a DIN? Transitional arrangements will allow directors to become familiar with the new requirement. When you need to have a director ID will depend on when you were appointed as a director.

7 Best Practices for Setting Your Small Business on the Success Track

By Andrew Stubbs • 07 Apr, 2022
If you're a small business owner, you're always on the lookout for better ways to go about routine tasks to boost growth and underpin reliability. So, yes, you have the will; now, what are the ways? What are those consistent routines you can instill that will have the most benefits? This article looks at the top 6 things you can do to help your business thrive. We're going to cover finances, goals, marketing, technology and you ! So, let's take a look… 1. Your finances are a scorecard … and a predictor Boil it all down and dollars in the bank are the report card on the health of your business operations. Surprising then that so many people don't really pay much attention to how much they've earned, nor how much they're likely to earn. As much as it might feel like a chore, reviewing your sales and financial projections and then using them to ascertain if you need business financing is a discipline worth cultivating . If you suspect that your cash flow is precarious, you should be checking out your options today. First metric to check: your credit score. If it is too low, you need to take steps to shore it up. Next, check in with your bank or finance broker about what loans are available. 2. Goal setting, goal achieving, goal celebrating So, if you're using current and future dollars in the bank to keep score, the next thing is to do something about it. This is where goal setting comes in. If thoughtfully set and persistently pursued, goals help you orientate your willpower and your energy at each moment of the business day. This is the hidden power of goals: giving you a good sense of direction and a way to channel your instincts towards wise objectives. Constantly checking in with your goals makes them a benchmarking tool to keep your business pointed in the right direction. Yes, just having goals helps. Actually achieving a goal helps too, of course! 3. Increasing the impact of your marketing Marketing is not magic. It is not a mystery. It is not an art. However, many less-than-reputable marketers will try to claim that it is. They do so to gain wiggle room to pad their invoices and cover up their lack of skill. What this means is that it is easy to waste money on ineffective marketing. The good news is that there are many low-budget marketing strategies that actually work to help grow your brand and reputation. Scout around on the internet and choose one or two new tactics. Deploy them and test them. If they work, double down. If they don't, try something else. If you can't tell if they're working, also try something else. Social media is the obvious starting place for these low-stakes experiments and the old classics of LinkedIn, Facebook and Twitter are where to trial them. 4. Bringing your business up to date technologically The ability of modern productivity and project-management tools to give small players the same capabilities as the big boys simply cannot be ignored. Harness them properly and they'll let your small businesses operate with the same productivity as the titans of your sector. And, if your business is in the services sector, the increased controls that business technologies can yield also lets you be highly agile - that's something the big boys can't do. So, ask yourself: are you taking full advantage of what's out there? Don't worry, the answer to this question is always 'no' - the field is simply moving too fast for anyone to be able to take full advantage. However, if you have a realistic view of your needs, then you have a yardstick to help assess all the solutions out there. When you know what you need the technology to do, then you can wisely choose what hardware, software, platforms and techniques to introduce. 5. SEO has changed and it is going to change again Google - indeed all platforms offering broad search functions, from Youtube to Facebook - are constantly altering and optimising their algorithms. This, in turn, means SEO practice must constantly evolve to keep pace. So, if your SEO approach hasn't been overhauled in a few years, the time has come to give it some attention. Do a review of best practice and score how you cater to SEO in your online presences. Yet, because the underlying concept of SEO has not changed, the corrective actions you need to take may not be major. Then again, they might be! It is better to know unpleasant news sooner than outright bad news later. 6. Download the right new apps The remote work trend has gone mega and this means mobile productivity apps are very much of-the-moment. See, you can get a surprising amount done with just your phone and tablet. And apps are how it all happens … plus connectivity and a full battery, of course! Usually, apps are best for keeping an eye on things, boosting effectiveness on the "busy" tasks and enabling you to give your stamp of approval to work that needs your say-so to progress. In general, these are not value-adding tasks, just the value-neutral tasks that get in the way of the value-adding tasks. Now, there is no end of apps out there. So, as always, don't bother looking until you have some idea of what you need. 7. You are the ultimate business tool Health is the single most important aspect to consider for anyone running a business. It's the non-negotiable factor that governs everything else you are capable of. To adapt a quote from Arnold Schwarzenegger, being fit and healthy is "a status symbol. It reflects you worked hard for it; no money can buy it. You cannot borrow it, you cannot inherit it, you cannot steal it". This means that you must get enough sleep every night (most people need 7 hours or more). This means a healthy diet must become your preferred way of eating. This means that you should exercise every single day (except when sick). This means you must give your mind a rest too . Meditation isn't some mystic monkish thing, it's simply the practice of letting your thoughts come and go while you - the observer - stay peaceful and undisturbed by them. Think of it like this, meditating is mediating your mind. Take stock, choose wisely, make small steps in the right direction In this article, we've talked about some improvements you can make to what you're already doing. You don't have to do all of these at once. Start with the one that seems easiest and then stick with it to see if it works. Remember, it's not always about big changes. Often, you can make major improvements in outcome by making small changes to input. Doing the little things better. So take stock, choose wisely and be sure to make those small steps in the right direction for success today, tomorrow and the next day.
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