Legal
Issue No. 13 - October/November 2003
Sh.. it Happens!
by Michael Hegarty
What would happen to your business and your family if something suddenly happened to you?
Mid morning one day in September a client of mine had a heart attack while at work, and fell into a coma. It came without warning. Nothing in his medical history suggested that he was at risk. He was for all intents and purposes a strong and fit individual. He did not smoke, did not drink and was active in sports. Physically he appeared well and had no idea that things were about to change.
My client was the sole proprietor of a business. He was a good businessman and had built up the business significantly over the years he had owned the company. He knew his business well, having worked in his particular industry since his teenage years.
At the time of his heart attack he was the sole signatory for all cheque accounts held in the name of his business. He had a significant number of clients and worked hard in providing services for them. He had doubled his client pool since taking over his business. His business employed several people.
His wife was in the early stages of pregnancy, and they had had a young child.
To protect his assets, my client had divested himself of ownership of the family home and had placed it in his wife’s name. He had life insurance and significant superannuation.
However, he had neglected some important legal matters. Being just in his forties he felt that there was no urgency. He had not made a will. He had not appointed anyone to act as his Attorney should he be in a position of being unable to care for his personal affairs or the affairs of his company.
Four days after suffering the heart attack he was declared dead. He had never regained consciousness.
The legal issues faced by the business on his death were significant. They needed to be dealt with quickly. Wages had to be paid, accounts satisfied and services provided to clients. No one was authorised to attend to these m...
