If the newspaper stories about high profile family rifts didn’t get the message across, the personal anecdotes of stress and infighting did. These days, everyone is at least aware of how important it is to have a current Will in place. However, estate planning doesn’t begin and end with a Will.
‘Estate plan’ is a catch-all term that covers every nook and cranny of what happens to your assets after you die. It can include a number of crucial documents, such as:
The Will might not be everything to your estate plan, but it’s a good place to start. It can cover everything from the division of assets, to your wishes for your children, pets, non-financial rights, and more. If there’s a direction you wish to make legally enforceable, chances are your solicitor can either work out how to do it or advise you on how to achieve similar results.
In the past, a person might not have updated their Will very often. But these days, it’s becoming more important to review a Will on a regular basis. Relationship status (de facto relationships, divorce, blended families), parenting arrangements, social norms, personal values and more are all much more variable than they might have been in the past.
If that doesn’t get you thinking about your current Will, the alternative should: dying without a Will. It’s known as ‘dying intestate’, and could result in a court deciding how to divvy up your estate. This is done in accordance with a strict legal formula that may not reflect your wishes, and may result in your hard-earned wealth going to someone you would not have given it to.
Another fact that’s tough to face: according to official stats, more than half of those who live past age 75 will be living with a disability. For many of those people, that disability will severely limit core activities such as working or running a business, getting around, and communicatingi. You’ve worked hard over many years to craft your lifestyle, from your family home to your hobbies and perhaps your own business. Naturally, you’d want to protect what you’ve built. A power of attorney can cover your work/business, health care, and other personal affairs. The rules and options for powers of attorney vary from state to state in general, there are three types of powers of attorney.
With many common assets, it’s possible and sometimes necessary to name a beneficiary in advance. These assets include:
If you would like to discuss anything you’ve seen in this article, please feel free to give us a call on (02) 9188 1547. We’re here to help you make sure your wishes are respected in life and in death, and we can collaborate with your solicitor where necessary.
i ABS, 4430.0 – Disability, Ageing and Carers, Australia: Summary of Findings