Coombs Legal

01/11/2024

Living in WA with Assets in the UK? Here’s What You Need to Know About Powers of Attorney
If you're living in Western Australia and have assets in the UK, you may wonder if your Australian Enduring Power of Attorney (EPA) will hold up overseas or if you'll need a UK-specific Lasting Power of Attorney (LPA).
Understanding Powers of Attorney in Australia and the UK
A power of attorney lets you appoint someone (your "attorney") to act on your behalf if needed. In Australia, an Enduring Power of Attorney (EPA) enables this appointed person to continue acting for you if you lose mental capacity. The UK used to have a similar system known as the Enduring Power of Attorney, but since October 2007, it has switched to the Lasting Power of Attorney (LPA), which is now the required format.
International Recognition and the Hague Convention
The Hague Convention ###V on the International Protection of Adults (2000) aims to simplify cross-border recognition of powers of attorney. For countries that have signed and ratified the Hague Convention, it’s possible to obtain a certificate that enables your attorney to act for you in another country.
However, while English law may recognise foreign equivalents to an LPA, it applies a two-part test to confirm this:
Validity – The foreign document must be legally valid in the country where it was created.
Residency – The donor (you) must be habitually resident in the country where the power of attorney was made.
Since England and Wales haven’t ratified the Hague Convention, even if your Australian EPA meets these tests, it may not be straightforward for UK institutions to accept it.
Practical Challenges and the Benefits of a UK LPA
In practice, many UK financial institutions and asset holders, like banks or investment companies, may hesitate to accept documents they are unfamiliar with. This can create delays and additional stress for your loved ones during an already challenging time.
For this reason, if you're based in Australia but own assets in the UK, it’s wise to have a UK LPA in place. This will ensure smoother processes and less hassle for those managing your affairs if you lose capacity.
If you want peace of mind and a smoother process for your family, setting up a Lasting Power of Attorney in the UK is a smart step to protect your interests across borders. Should you want advice on the creation of LPAs contact Paul Coombs at [email protected] or visit the website

25/10/2024

🔒 Protecting Vulnerable Individuals from Financial Abuse: A Guide to Administration Orders in WA 🔒
Did you know that many individuals without Enduring Powers of Attorney are at risk of financial abuse? In Western Australia, Administration Orders provide a crucial safeguard for those unable to manage their financial and legal affairs due to mental illness, dementia, intellectual disabilities, or other conditions that impair decision-making.
Here’s how Administration Orders can help:
✅ Purpose: These legal instruments ensure that vulnerable individuals' assets are managed appropriately, protecting them from financial abuse and mismanagement.
✅ Who Can Benefit:
People with intellectual disabilities
Those suffering from mental health conditions
Individuals with brain injuries or cognitive impairments
Elderly individuals with dementia or Alzheimer’s
✅ Application Process:
Family, friends, or concerned parties can apply through the State Administrative Tribunal (SAT).
The SAT assesses the individual’s capacity and appoints a trusted administrator to manage their affairs, which could be a family member, friend, or professional.
✅ Role of the Administrator:
Administrators handle financial matters such as paying bills and managing bank accounts.
They are accountable to the SAT and must act in the best interest of the individual.
✅ Duration & Review:
Orders can be permanent or temporary, depending on circumstances, and are reviewed regularly. If the individual regains capacity, the order may be revoked.
💡 With financial abuse costing Australia $15.6 billion annually and six in ten Australians concerned about elder abuse, it’s vital to know the steps to protect those at risk. www.finacialvulnerability.com
For more details on applying for an Administration Order or the responsibilities involved, feel free to contact [email protected] or visit our website: www.coombslegal.com.

18/10/2024

🔍 Understanding Claims Against a Deceased’s Estate for Family Provision in WA
In Western Australia, the Family Provision Act 1972 (WA) allows certain individuals to challenge a will if they believe they haven’t been adequately provided for. This law ensures that close family members and dependents receive necessary support, even if the will doesn’t account for them. However, this can sometimes conflict with testamentary freedom—the right to distribute assets according to personal wishes.
Here’s a quick rundown of how the Family Provision Act works and what it means for both will-makers and potential claimants:
👨‍👩‍👦 Who Can Make a Claim?
Spouse or De Facto Partner: If they lived together in a marriage-like relationship for at least two years.
Children: Both biological and adopted children can claim.
Grandchildren: Limited rights if financially dependent on the deceased.
Former Spouse or De Facto Partner: Must demonstrate that the deceased owed them a moral duty.
Stepchildren: Can claim if they were dependent on the deceased.
⚖️ Impact on Testamentary Freedom
Courts can override a will if eligible claimants are unfairly left out.
Balancing your right to distribute your estate with the moral responsibility to support your dependents is key.
📝 Practical Tips for Will-Makers
Ensure your estate plan is legally sound and considers potential claims.
Provide written explanations for exclusions in your will.
Consider setting up a testamentary trust to protect your assets from challenges.

Recent studies have shown that as much as 74% of claims succeed that go to full trial with many more settling before that point. Estate_contestation_in_Australia_An_empirical_study_of_a_year_of_case_law.pdf (qut.edu.au)

By understanding the Family Provision Act and taking proactive steps, you can ensure your wishes are respected while also fulfilling any obligations to those you leave behind. For expert legal advice, contact Paul Coombs at [email protected] or visit our website www.coombslegal.com.

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11/10/2024

🌟 Why You Need an Enduring Power of Attorney (EPA) in Western Australia 🌟
Have you thought about who would manage your finances and legal matters if you were no longer able to make decisions? In WA, an Enduring Power of Attorney (EPA) lets you choose someone you trust to step in if you lose capacity due to illness, injury, or age. 🏡

Why is it important?
✅ Stay in control – You choose who handles your affairs when you can't. ✅ Prevent family disputes – Clear instructions mean no guessing, fewer conflicts. ✅ Avoid costly legal processes – Save your loved ones time, stress, and money by having an EPA in place.

Have a business? Who will take control of your business should you lose mental capacity? This can be dealt with separately to your personal assets.

Without an EPA, your family might need to go through the State Administrative Tribunal to manage your affairs—a process that can be expensive and time-consuming.
Plan ahead and make sure your future is in good hands. 💼❤️

For more info or help setting up an EPA, reach out to Paul Coombs at 0433 806 146 or email [email protected]

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07/10/2024

💼 Attention Small Business Owners in Western Australia 💼

Have you thought about the future of your business if something unexpected were to happen to you? Planning for the future isn’t just about growing your business—it's also about protecting it and your loved ones. One crucial step is having a valid and up-to-date Will.
A Will ensures your personal and business assets are distributed as you wish. Without one, your business could face serious complications, leaving your family, employees, and partners in financial and legal uncertainty.
Here's why a Will is vital for small business owners:
✅ Business Continuity: A Will helps ensure your business goes to the right person, so operations can continue smoothly.
✅ Minimise Family Disputes: Clear instructions reduce the risk of costly legal battles between family members.
✅ Protect Your Beneficiaries: Put safeguards in place, such as testamentary trusts, to protect your beneficiaries from potential risks.
✅ Tax and Financial Planning: A well-planned Will can help reduce taxes and ensure more of your assets go to your loved ones.
If your business is held in a family trust, it’s important to review your trust deed and make sure everything is aligned with your Will to avoid complications.
Taking proactive steps now will protect your business and provide peace of mind for you and your family. Need help with estate planning? Reach out to Paul Coombs today at 0433806146 or [email protected] to discuss your options.

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02/10/2024

Why You Should Update Your Will During a Divorce?

In Western Australia, your Will remains valid even during divorce proceedings unless explicitly revoked. If your estranged spouse is still listed as a beneficiary or executor, they could inherit a significant portion of your estate if you pass away before the divorce is finalised.
Here are some reasons why updating your Will is essential during a divorce:
1) Spouse’s Inheritance Rights: Your spouse can still inherit from your estate if they are named in your Will, even if you are estranged. This could go against your current wishes.

2) Executor Responsibilities: If your spouse is the executor of your Will, they could manage your estate after your passing, even if your relationship has broken down. Appointing a new executor can prevent this.

3) Children from Previous Relationships: An updated Will ensures that children from previous relationships receive the inheritance you intend for them.

4) Avoiding Intestacy: If you die without a valid Will, your estate is divided according to law, which could result in your estranged spouse inheriting a significant portion of your estate.

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