Wairarapa News : January 25th 2012
21 WAIRARAPA NEWS, JANUARY 25, 2012 BUSINESS Enduring Powers of Attorney by Simon Ogilvie §Simon Ogilvie Property Trust & Business Lawyer Phone: 0800 249529 email: firstname.lastname@example.org Advertorial There are two types of Enduring Powers of Attorney. One for personal care and welfare and the other for property (your possessions and assets). Personal Care and Welfare An Enduring Power of Attorney for personal care and welfare can only come into effect if you become mentally incapable. Mentally incapable means the inability to understand the effect of any decisions which may be made relating to a person's personal care and welfare. An example of this is where a decision is required for a person with Alzheimer's disease who needs to be placed in care. Under an Enduring Power of Attorney for personal care and welfare only an individual person must be appointed. It is common for this person to be a member of the donor's family. Property An Enduring Power of Attorney relating to property contains several features. The person giving the Power of Attorney can choose when the Enduring Power of Attorney comes into effect. The options are: immediately the document is signed (if a person wishes someone • else to manage his or her affairs from the date of signing); at some specified time in the future; • or if the person giving the Power of Attorney becomes mentally • incapable ("mentally incapable" in relation to property means that the person giving the Power of Attorney cannot manage his or her property affairs). In addition an Enduring Power of Attorney relating to property has the following further features: The person giving the Power of Attorney can decide whether it • covers all of his or her property or just specific assets, The person giving the Power of Attorney can decide whether • there are particular conditions he or she would wish to impose upon the use of the Power of Attorney. The person giving the Power of Attorney can stipulate whether • it is to take effect for a period of time or for the rest of his or her life. An Enduring Power of Attorney relating to property can be cancelled or changed at any time provided the person giving the Power of Attorney understands what he or she is doing. If a person becomes sick or is incapacitated as a result of an accident then unless an Enduring Power of Attorney is in place the family and other close relatives cannot make important decisions. To obtain authority to make such decisions in the case of an accident or illness, it is necessary to make an application to the Court for a manager to be appointed to make decisions on financial matters and a welfare guardian on personal matters. Such applications can be expensive, stressful and take time. Any person over 18 or anyone who is married should give serious consideration to making Enduring Powers of Attorney. An Enduring Power of Attorney operates while the person giving it is alive. This is to be contrasted with a Will which only takes effect upon death. A Will does not come into effect if a person is mentally incapable. Indeed, in that situation the solicitors acting will not be able to divulge the terms of the Will to family members. If you require further information about Enduring Powers of Attorney please telephone me on 0800249 529 or e-mail me at email@example.com memorandums/enduringpowersofattorney 4275743AC for exceptional service 4327319AA TAKE YOUR CHANCE to win on the Wheel in the STOREWIDE sale Spin the Winning Wheel for a further 5-50% off your purchase! Sale ends Tuesday 31st January 2012 20% OFF store wide Cnr Queen & Church Streets, Masterton 'Where all the best dressed men shop' DIGITAL EDITION NOW ON LINE D D D DI I I I IG G G G GI I I I IT TA AL L L L LE E E E E E ED D D D D D D DI I I IT T T T TI I I I I IO O ON N N N N N N N N N N N N N N N NN N N N N N NO O O OW W W W W W WO ON N N N NL L L LI I IN N NE E www.wairarapanews.co.nz FREE 4068404AC Plan and budget -- or die ' Having a good flexible amount of available working capital is the key to maintaining a healthy business. ' Greg Sheehan By GREG SHEEHAN Summer is finally here and the sand is reluctantly being shaken from your feet. Now that you re beginning to get life back to normal, you can start focusing on having a great 2012. What does a great 2012 look like? If that includes being happier in your busi- ness then read on. You ll remember that at the end of last year in the first two articles in the series we discussed having both a great winning attitude (separates those doing well from those who aren t) and having the right strategic plan. This week we want to talk cash. There are loads of tricky complex things to know about in running a business. But forget all the complexity for a min- ute. If you don t have cash you are dead. End of story. So what do you do to make sure you ll always have enough cash? This is an area where your accountant should be helping you out. Any good beanie worth their salt can determine whether your budget matches your operational plan for the year. Do you have an operational plan or are you just winging it? Once the operational plan has been agreed and the budget finalised then the next step is to work out how cash will wash in and out of your business. Again, the accountant should be help- ing with this. If they re not -- then ask them. Understanding where your cash has been spent and where it s likely to go over the short to medium term (from next week to six months from now) is abso- lutely critical. You simply must do this stuff. If you don t, you are steering a boat without a chart. Why would you do that? Your wealth and your family s dependency on that wealth is your cargo. Once you know the answers to where your cash is going the next obvious ques- tion is -- is that enough? Do I have the cash available that I need? When businesses are growing they chew through the cash. Honest! That may seem weird but it s true! Sadly the same thing applies when the business is dying. The bottom line is you simply must have the cash available to either keep your business steady or to make it grow. Often you ll hear the term working capital . What is that? people often ask. Essentially it s the money you have tied up in things that are not yet cash -- like the money you have sitting in the value of your stock, or the money your clients owe you. Having a good flexible amount of avail- able working capital is the key to maintaining a healthy business. Work with your accountant and your bank on this to get it right. I ve seen some really successful busi- ness people in my time and to date I ve never seen one that didn t understand the value of knowing where their cash has gone and what it is projected to do in the future. We really hope you dreamed some big dreams for your business over the sum- mer break. Enjoy making them happen. Just make sure you have enough of the folding stuff available to get you through. Greg Sheehan is chief executive for Greytown-based accountancy firm RightWay. Contact on (06) 304 8444.
January 18th 2012
February 1st 2012