Why you need a will

The end/start of financial year is a good time to revise your Will – or if you don’t have one, it’s imperative that you take steps to put one into place.

It’s been estimated that 45% of Australians don’t have a Will. Dying without a Will can leave your family and loved ones in financial stress, at a very emotional time. Particularly if you’re in a de facto relationship, or your relationship status has changed recently, or if you’ve had kids or grandchildren – you need to take steps to ensure your Will is up to date and legally correct. A new marriage in many states will cancel a will, but a divorce won’t.

And while your Will must be in written form, it needs to be in more than just on a napkin from a restaurant. A Will must take a proper legal form, otherwise the Government can declare it invalid and your assets will be distributed according to a pre-determined formula.

In addition, your Will must be able to be found when you die. Store it in a safe place and let your family and your Will executor know where it is. You may choose to consider storing it with a third party like the Victorian Will Bank, which keeps your Will and any other important legal papers safe and secure. Only your executor should be able to access your Will if you die should you choose this option.

Executors

While we’re talking about executors you can choose a family member. However, it’s best to consider choosing someone who isn’t a beneficiary so there is no conflict of interest.

If you choose your parents, consider the fact you may outlive them and need to appoint a new executor. Choosing your spouse or children can be a good option if you trust them and they are familiar with your affairs, however it can be a burden. You should ensure they have the capacity to make important decisions. And consider any family conflicts that may arise from appointing one person, but not another, as a caretaker of your affairs.

If you would prefer the objectivity of a professional you can choose an executor, such as a Trustee or solicitor. Or you could give any of these people the power of attorney – someone you trust and know can make appropriate decisions for you.

Superannuation

We can’t forget to mention superannuation when talking Wills. Super does not automatically form part of your estate. So you must be specific with your wishes and ensure you have an up-to-date binding death benefit nomination.

Only ‘tax dependents’ can receive your super tax free. If your children are over 18 they are considered to not usually be tax dependent.

Make your Will now

It’s not pleasant to think about our own mortality. But it’s even less pleasant to think about the emotional anguish you could potentially be creating for your loved ones if you’re not prepared.

Axios can recommend you to solicitors to help start the process.