Attwood Marshall Lawyers’ Legal Practice Director, Jeff Garrett examines eye-opening data showing younger adults at risk of cognitive illnesses and explains why estate planning matters, even if you’re young, healthy, and think you have no assets.
According to the Australian Bureau of Statistics, one Australian dies every 3 minutes, and it’s estimated only 50 per cent of Australians have an up-to-date and legally binding Will. No doubt, fewer have a Power of Attorney. That alone is an alarming statistic.
It’s not uncommon for young adults to suffer an illness or injury in a workplace accident or motor vehicle accident when in their 20s or 30s; however, what is becoming more prevalent is young adults also suffering from diseases affecting capacity, such as the early onset of dementia.
Once considered an older person’s illness, dementia is increasing at substantial rates for young Australians, and some people as young as 35 have been diagnosed. Just this year, the Australian Institute of Health and Welfare announced the number of people living with younger onset dementia is set to double to almost 41,000 in the next thirty years. There are currently an estimated 29,000 people living with younger onset dementia in Australia. The general decline in the health of our younger population and the dramatic increase in the prevalence of obesity, diabetes and related conditions caused by poor diet and lack of exercise is a sad realty in modern society.
Unfortunately, our current healthcare system does not necessarily cater for young adults with diseases that affect capacity. People who are not retired and who have received a dementia diagnosis can face different challenges to those diagnosed much later in life. Working to pay off a mortgage, paying for children’s education, or financially supporting a young family are just some of the differences people with younger onset dementia may have to navigate.
If a young adult with complex medical needs lacks capacity and requires round-the-clock care, they will often end up in a residential aged care home. This situation stems from a lack of age-appropriate options and adequate community support services for this demographic.
Although the Royal Commission into Aged Care Quality and Safety set the government a target of zero younger people in residential aged care homes by 2025, this target seems unlikely to be met despite the roll-out of several initiatives to address the problem. Attwood Marshall Lawyers’ Wills and Estates Partner and Accredited Aged Care Professional Debbie Sage explains more about this in her blog “Zero young people in aged care: the progress and challenges”.
Everyone, no matter their age, can take proactive steps now, and be prepared. They can ensure their wishes will be honoured and their health preferences documented, allowing loved ones to be able to follow their instructions if the unexpected happens.
Whether creating a Will, setting up Powers of Attorney, or outlining Advance Care Directives, estate planning is about more than preparing for death – it’s about securing your future.
The importance of Wills for young adults
This is especially important if there is a strong family history of dementia, psychiatric diseases, or other medical emergencies like stroke that can affect decision-making capacity.
While young adults may not have a million-dollar property to their name, or an expansive share portfolio, almost everyone in the workforce has superannuation and life insurance policies, and these can hold substantial value. More young adults have also been exposed to other investment strategies such as crypto currencies than previous generations. Many people are unaware these assets must be managed appropriately to ensure they go to their chosen beneficiaries if something unexpected happens.
Essential components of estate planning
There are many considerations to be had when completing your estate plan. This is where an experienced estate planning lawyer can provide comprehensive advice to consider your unique needs.
The following factors should be considered:
- Making a Will. Although countless online and do-it-yourself options are available to write a Will, one should err on the side of caution. When you create a DIY Will, you can leave yourself and your estate open to costly consequences. Without the assistance of an estate planning lawyer to draft your Will and tailor it to your specific needs, the Will may use ambiguous language, fail to be executed properly, fail to deal with assets appropriately, and may be at risk of being contested. An estate planning lawyer can help you develop a strategy that ensures your wishes will be fulfilled, your document is legally valid, and your instructions are clear for your executor to follow after your death.
- Appointing an Enduring Power of Attorney (QLD) or Appointment of Enduring Guardian (NSW). Just as vital as putting a plan in place for your assets if something suddenly happens to you is the necessity to appoint someone you trust to act for you if you cannot make decisions for yourself while you are still alive. If you were to suffer a stroke or sustain a head injury in a car accident and can no longer look after yourself, your business, and your family, your Attorney would need to step into your shoes and make decisions about your finances, the care you receive, and where you live. Failing to appoint an Attorney could mean the authority is passed to The Public Trustee to control your affairs if you lose capacity. Unfortunately, it is well documented that the Public Trustee has repeatedly failed the very people who rely on them for care and support. Instead, reports have exposed people being cut off from their finances, left to live on the streets, unable to support themselves, and having their assets sold with those funds then being lost to excessive fees charged by The Public Trustee. The best way to prevent this from happening to you is by ensuring you have an enduring power of attorney and that you have appointed someone you trust and who is capable of performing this role.
- Superannuation binding death benefit nominations. Superannuation can be one of the most valuable assets people own. For this reason, it is important to ensure that you plan for the transfer of this asset if something unexpected happens. Many people do not understand that super is not part of your estate. This means that you cannot deal with super in your Will. To pass this valuable asset onto someone after you die, you need to complete a binding death benefit nomination to instruct the superannuation trustee who should receive these benefits.
- Advance Health Directive. This document specifies what healthcare treatments or actions you would like to have or refuse should you be in a position where you are seriously ill or injured and unable to make or communicate your decisions about your care at the time. This document is usually more applicable to the end-of-life phase, but it can be very important for people who have specific wishes with respect to their treatment choices.
Attwood Marshall Lawyers are passionate about helping people of all ages plan for the future and preserve their wishes.
Our estate planning lawyers take great pride in building rapport with their clients to gain insight into what matters most to them, and how they can help them plan for the future and put legally binding documents in place to protect their best interests.
With one of Australia’s largest Wills and Estates Departments, we want to make it as easy and cost-effective as possible for everyone to have their most basic legal documents in order.
If you need assistance drafting a Will, or Enduring Power of Attorney, or simply want to better understand what documents you should consider to suit your personal circumstances, please contact our Wills and Estates Department Manager, Donna Tolley, on direct line 07 5506 8241, email dtolley@attwoodmarshall.com.au or free call 1800 621 071 any time.
Our team are available for appointments at any of our conveniently located offices at Robina Town Centre, Coolangatta, Southport, Kingscliff, Brisbane, Sydney, and Melbourne.
You can also book online instantly by clicking here and booking through our website.
