The Importance of Having a Will
A Will is more than just a document—it’s a key tool in ensuring your wishes are respected and your loved ones are provided for. Many people put off writing a Will, often underestimating its importance or assuming it’s something only older individuals need. However, having a professionally drafted and up-to-date Will is essential for everyone.
What Is a Will?
A Will is a legal document that outlines how you want your assets distributed after your death. It also allows you to appoint an Executor to ensure your wishes are carried out.
Why Many Australians Don’t Have a Will
According to the ABS (2020–2023):
- 60% of Australians don’t have a Will.
- 34% of those say it’s simply because they “haven’t gotten around to it.”
Given the complexity of modern family dynamics—with 30% of first marriages and 60% of second marriages ending in divorce—it’s critical to have clear plans in place for the division of assets.
What Happens Without a Will?
If you pass away without a Will (intestate), the law determines how your assets are divided. This may not align with your wishes and can lead to unnecessary complications, including:
- Statutory Distribution: Assets are divided among surviving family members according to a formula, which may not reflect your preferences.
- Court-Appointed Guardians: If you have minor children, a court will decide who will care for them and manage their inheritance.
- Family Disputes: Uncertainty can cause stress, disagreements, and even legal battles among loved ones.
Benefits of Having a Will
- Control Over Your Estate: Clearly define who inherits your assets and designate beneficiaries, including children, stepchildren, charities, or friends.
- Appoint Executors and Guardians: Choose trusted individuals to manage your estate and care for your children, ensuring your family’s needs are met.
- Avoid Legal Complications: Minimise disputes, legal costs, and taxes that may arise from an intestate estate.
Common Misconceptions
- “I Don’t Have Enough Assets”: Even young people with limited assets often have superannuation, which requires clear instructions for distribution.
- “Will Kits Are Enough”: While affordable, Will kits may not adequately cover complex situations or provide guidance for long-term planning.
When to Update Your Will
Your Will should be reviewed regularly and updated after major life events, such as:
- Marriage, remarriage, or separation.
- The birth of children or grandchildren.
- Acquiring or selling significant assets.
- Changes in your financial or family circumstances.
Important: Did you know your Will becomes invalid upon marriage? A new Will must be created to reflect this change in status.
Additional Estate Planning Tools
Consider preparing a Power of Attorney or Enduring Guardian alongside your Will. These documents allow trusted individuals to manage your affairs or make decisions on your behalf if you’re unable to do so due to illness or disability.
Why Act Now?
Estate planning is not just about protecting assets; it’s about protecting your loved ones. Creating or updating your Will provides clarity, reduces uncertainty, and ensures your wishes are carried out.
As experienced mortgage brokers, we’ve seen firsthand how essential proper estate planning is for families. If you’re unsure where to start, we can connect you with trusted solicitors in Canberra and across the country to guide you through the process.
Take the time to plan today for peace of mind tomorrow.
