It’s surprising that many otherwise organised people don’t have an up-to-date will. By having an up-to-date will, you ensure that your assets will be distributed as you wish them to be, rather than by a strict legal formula.
Some questions to consider:
- Do you have sufficient assets and/or life insurance to pay off debts (mortgage, funeral costs) and taxes in addition to providing for dependants?
- Who is your executor? Someone who is unlikely to predecease you is preferable. They can seek estate-management advice from a solicitor.
- Who are your beneficiaries? Is it likely some may predecease you?
- What gifts do you want to make and to whom? You may wish to detail who will receive specific items.
- Should you create a trust in favour of your beneficiaries? This can provide significant tax and Centrelink advantages to them, particularly where minors or pensioners are involved. A trust is also effective tool in protecting your estate’s assets from potential creditors.
- Has your superannuation fund recorded up-to-date details of your preferred beneficiaries?
In reviewing these issues, remember that your circumstances may have changed substantially since your initial will was drawn up. You may have bought or sold assets, you may have additional family members you wish to provide for (e.g. grandchildren), or your marital status may have changed. You may also need to change your will if any of your beneficiaries have died or changed their circumstances.
All this highlights just some of the reasons for careful estate planning.