Estate planning: preparing for the worst (even when you don’t feel like it)

For some, estate planning is as distant a topic as living on mars. But the reality is that wills are a vital part of distributing your assets after you pass.  

What is a will? 

​Wills are legal documents which, to their fullest extent, ensure that your assets are divided in your preferred manner when you die.  

For some the idea of a will is not their first, fifth, or hundredth thought.  

Do I need a will if I don’t have many assets? 

​With the rising costs of home ownership, a lot of young people are being locked out of the housing market or choosing to live at home or rent. You may think that this means a will is unnecessary, but there is a lot more to a will then who your property is left to.  
​​

• Super: When you pass away, your super will be paid out to the most appropriate party. Though you can nominate individuals through binding beneficiary nominations, sometimes complicated issues such as divorces or blended families can cause issues with who is entitled to the money. These nominations also have limits to what they can provide.  
  • For example, if you leave your money to your children in a beneficiary nomination, you will not be able to dictate how that money is spent. Instead, the guardians of your child will be given access to the money to spend on their behalf.  
  • You’re also restricted with who you can nominate on a beneficiary nomination. You aren’t able to nominate anyone who isn’t financially dependent on you such as a friend, cousin, or neighbour.  
• Guardianship: A will can specify who you’d like your pet or child to be cared for by. This is especially important if you do not want a particular family member to look after your child or pet! 
• Bequests: If you have a collection of vintage stamps that you can’t bear to see sold off, a will can ensure that it's donated to someone who will value it, individual or otherwise. If you’d like your estate to be given to charity, or if you’d like your sister to be gifted your old wedding dress, for example, these all must be specified in a will.  
• Funerals: This is a great thing to do for the ones you leave behind. It allows them to have an idea of your specific requests and gives them an outline on how you’d like your life to be acknowledged and celebrated.  

What if I don’t have a will when I pass? 

This is called intestacy. If you do not have a binding will at the time of your death, the law will determine who gets what (even if it's not what you would have wanted).  

Exceptions to this include binding beneficiary nominations with supers and insurers, which allow you to nominate specific individuals. Of course, these are general in nature and will not outline any specifics of how they money will be accessed by your beneficiaries.  
​
If you have any further questions about wills, we’re happy to refer you to a local estate planner or solicitor.