Tips for preparing a will
According to recent studies, 50 per cent of Australians die without a will, which is a sobering thought in terms of the implications. A will is an extremely important document to prepare effectively to ensure your wishes are carried out appropriately and efficiently.
Without a will, you have no input as to how your assets will be distributed after your death. Instead, laws that vary by state will determine how things are divided, which may mean that your assets end up where you never intended. This can also cause undue financial and emotional stress and hardship for your family and other beneficiaries.
A will can cost from $150 for a DIY online version up to thousands if you use professional services. Whatever option you choose, it’s a vital document to put in place for peace of mind both for yourself and others.
Here are a few tips to assist you in the process:
Online research – Even if it’s just for initial research, there are plenty of online tools and templates to help get you started and understand what’s required.
Choose wisely – Under your will, an executor is appointed who will look after your estate. The executor must collect all your assets, pay all your debts and distribute your estate in accordance with your will. This is a significant role and you need to ensure the person chosen has the appropriate skills, experience and patience to mange the role effectively. If you are married, you may name a spouse as executor, but it’s also worth looking at an impartial, independent person as well. Naming two executors is also wise so that if one executor is unwilling or unable to act at the time, there is another trusted person who can step in.
List your assets – Sit down and make a comprehensive list of your assets and decide who should receive them. Even items that may not appear to have much perceived value should be included if people are likely to want them.
Sound out the family – It’s worth consulting the family to avoid friction down the track if for example there are expectations as to who thinks they’re getting the family heirlooms or you want to make special provisions for certain people.
Keep it explicit – Make sure you clearly identify beneficiaries and assets so there’s no confusion.
Back up plans – Identify where your assets will go as an alternative, if say a beneficiary dies before you do or a charity you intend supporting stops operating.
Keep it updated – Significant life events such as divorce, births, adoption and retirement are all reasons to review your will.
Where it’s kept – It might sound obvious, but make sure you let someone trusted know the location of your will for direct access if required.
Further instructions – Aside from an official will, it’s also worth writing a letter of personal instruction. This may include wishes for funeral arrangements, the location of important documents and other personal details or wishes.
Consult an expert – Planning your will can be an involved and stressful process. It’s a good idea to find someone who has significant experience to guide you. Although DIY wills are an option, this area of the law is complicated and anyone with significant assets should look for a solicitor who specialises in trusts and estates.
This article is for general information only and cannot be relied on as legal advice. You should seek formal legal advice on your specific circumstances.