As featured in the June edition of QHA Review MagazineÂ
Given that many publicans have considerable assets as part of their pub portfolio, it is important to consider what is the succession plan should you lose capacity or pass away. Establishing a succession strategy for key positions within a company is essential for upholding organisational standards and guaranteeing optimal performance for when publicans take a step back from operating a pub. A robust succession plan can facilitate smooth transitions, minimising disruptions, especially during an unexpected departure. In this article, we will consider the importance of documenting a succession plan by creating an Enduring Power of Attorney and Will.
Enduring Power of Attorney
In Queensland, the Enduring Power of Attorney (EPA) holds significant legal authority. It enables individuals to prepare for unforeseen circumstances and ensure that their personal and financial matters are handled in alignment with their preferences should they lose capacity to make these decisions while they are alive.
The key benefits of an EPA for publicans are as follows:
Financial Management
Granting an attorney the legal mandate through an EPA empowers them to oversee and make decisions about an individual’s financial affairs and assets of an individual should they lose capacity. This is particularly important for publicans who hold businesses and substantial investments. The attorney can step into the shoes of the individual and handle the financial affairs and direction of a pub should an individual lose capacity.
Ensuring Personal Wishes for Medical Decisions are Met
Another key advantage of an EPA is the ability to designate a reliable individual (or multiple individuals) to make vital medical decisions in the event the individual loses capacity. This encompasses decisions regarding medical treatments, surgeries, and ongoing healthcare needs, ensuring that the individual’s health requirements are addressed in accordance with their wishes.
Will
It is generally recommended that publicans create, regularly review, and update their Will to ensure an adequate succession plan in place for when they pass.
The key benefits of creating a Will are as follows:
Control over Asset Distribution
A Will grants you the authority to designate who will inherit your assets upon your passing, ensuring that your belongings are distributed to your chosen beneficiaries.
Choice of Executor
By creating a Will, you have the freedom to select an executor who will execute your wishes outlined in the Will. This is particularly important where you have a complex pub portfolio and require particular steps to be taken upon passing.
Avoidance of Disputes
By clearly articulating your intentions in a Will, you can mitigate potential conflicts among beneficiaries, reducing the likelihood of family disputes over your estate.
Timely Distribution of Assets
A well-defined and legally valid Will can expedite the probate process, which is the court procedure for distributing the assets of the estate.
Gifts and Donations
By creating a Will, you have the opportunity to make specific gifts and donations to individuals or organisations.
Should you have any queries or require any further information in relation to creating a EPA or Will, please contact me on (07) 3224 0230.
