Avril Liljekvist: No second chances to plan a legacy or make sure you can help your family settle your estate

A close friend of mine passed away in hospital last year. I hadn’t gone to see her as often as I should have, because I was certain she would be released home soon, as she always had been before.

By the time it was clear that things were far more serious than I’d realised, there was not enough time. I had been certain, and I had been wrong.

It’s comforting to think that things will continue as they always have, but far too often our lives take a sharp turn, leaving us scrambling to adjust, or bereft when a loss cannot be undone.

Families are left to manage difficult situations, often with little preparation or discussion about how to navigate them, creating additional stress at a time which is already fraught.

Although it can feel awkward, pessimistic or unnecessary, preparing for uncertainty is a profound act of love towards those to whom we are closest.

Put safeguards in place

First, you need to ensure that you have your affairs in order.

An enduring power of attorney will allow someone else to help you with your financial affairs if you become unable to act for yourself, and an advanced health directive will allow them to make decisions regarding your health and care.

A will needs to be written alongside consideration for beneficiaries of insurance policies and superannuation.

These elements work together to create a legal and financial framework designed to carry your financial arrangements forward, even if you’re not at the wheel.

Get the right help

Legal and financial expertise serves two purposes when you’re preparing for the future.

Your “disaster plan” needs to work flawlessly first time, as you may not have the chance to refine and perfect it for a second chance, and the right expert will help you to do that.

The involvement of a lawyer, financial adviser or accountant also provides your family with an alternate point of contact in case you’re not there to help them.

Including your GP in the conversation about future medical treatment can ensure your advanced health directive is clear and understood.

Talk it through

It can be difficult to talk about this kind of “disaster planning” but it’s important that the plan isn’t a secret to your family.

Insurance policies and superannuation beneficiary nominations won’t help if no one knows that they’re in place.

Medical directives and powers of attorney should be somewhere accessible so they can be used when needed.

Conversations around your values and your intentions about “what to do if…” mean that your family can act in your best interests, secure that they’ve understood your wishes.

Keeping a list of financial assets so that everything can be tracked down for the estate, or accessed by your family, can save time and ensure only the right floorboards get prised up.

Keep it up to date

As life changes, your plans and documents need to change too.

Significant life events such as marriage or divorce can alter the validity of your legal documents.

Even a change in your long-term health prospects or lifestyle might mean that adjustments should be made to your “disaster plan”.

Reviewing your documents regularly will keep the details fresh in your mind, and help identify any potential oversights.

Don’t wait

It’s easy to think that we have lots of time to take care of these things before they become an issue, but life can get away from us, and when a plan is needed it’s often too late to put one together.

Clarifying your intentions in conversations, and in your legal and financial documents, is your loving contribution to as much certainty as possible in your wonderfully uncertain lives.

Avril Liljekvist is a financial planner at Nexia Perth Financial Solutions