Why it is important that you should have a Will?

The thought of dying is a horrible thought for anyone, especially the thought of dying prematurely and leaving your family to go on without you. No matter how small a chance that it could happen to you, it is imperative that you plan what will happen to your belongings in case something unforeseen does eventuate.

What is a Will?

A Will is a legal document that outlines a person’s requirements as to how their estate (assets) will be divided upon their death and which person or people will look after its distribution.

What happens if you die without a Will in place?

An administrator will be appointed to oversee the distribution of your estate based on established government laws, rather than the way that you would have necessarily wished. Writing a Will avoids repercussions from a stranger dividing your assets by expressly pointing out what you want done with them and who you want to enact it.

What specific benefits can a Will provide?

1. By naming specific beneficiaries, you can include people that would not normally be included under government laws, or people that would normally be a lower priority on the list to receive part of your estate. Based on these government laws, the order of priority is as follows:

• Spouse and Children

• Parents

• Siblings

• Nephews and Nieces

• Aunts and Uncles

• First Cousins

• The Crown

Therefore, by specifying in your Will, you can split up your assets in whatever ratios you see fit. This can also be useful if your spouse re-partners, ensuring that if your spouse subsequently passes, your assets are not then given to the new partner rather than your children or other preferred beneficiaries.

People not normally included as potential beneficiaries that would require a Will to be considered are grandchildren, stepchildren, or any other person that is not related to you.

Another important purpose the Will provides is the ability to nominate how and when your children will receive these assets. You may decide to bequeath them specific amounts over a period, or not allow them to access it until they have reached a certain age. A Will can provide a much more specific distribution of your assets to your beneficiaries giving you much more control. 

2. Through using a Will, you will be able to nominate a guardian for your children preventing someone you might not have otherwise chosen, or the possibility of being entered into the foster system.

3. You will be able to nominate any funds that you would like to be given to charity or church.

4. Any specific requirement you have for the treatment of your body is stated in a Will. If you have not specified cremation and burial, it could lead to unintentional family conflict as for how to proceed. Without a Will the order of precedence to make the decisions are:

• Spouse or Defacto partner

• Children

• Parent

• Sibling

5. Lastly, a will names who the Executor of your estate is. The testator (person who the Will is for) is free to choose whoever and as many executors as they wish. However, the supreme court will only allow a maximum of four people at any one time.

An Executor of your estate ensures your affairs are in order such as:

• Paying outstanding bills

• Cancelling credit cards

• Cancelling memberships and subscriptions; and

• Notifying the bank

Ensure you appoint someone who is organised and can be trusted to carry out the items listed in your Will. Family members may not necessarily be the best choice to be named Executor, so always consider all options before making such an important decision.

In the end, having a professionally drawn up Will ensures the whole process runs much more quickly and smoothly while preventing possible disputes arising between family members. A financial adviser can help you plan the best approach to the distribution of your estate and can provide advice on the tax implications.

Keep and eye out for our next instalment of insight into estate planning that will help you further in devising the best ways to keep your family well looked after for many years to come.

Kate Trost

Senior Financial Adviser and Director of Solace Wealth Management (AR numbers 465078/1262350)

Authorised Representative of Avana Financial Solutions (AFSL 516325).