Estate Planning: Why it’s important to have a will
What is your ‘estate’?
Your ‘estate’ includes all your possessions and assets—essentially, everything you own in this world. This may consist of cash, real estate, vehicles, boats, furnishings, jewelry, ancestral items, artwork, stocks, and beyond.
What is estate planning?
Estate planning involves making decisions about the future of your assets after you die. By outlining clear instructions, you ensure that your loved ones are spared from any unnecessary disputes or confusion regarding your belongings.
Why is estate planning so important?
Here’s why having an estate plan is so beneficial:
- It ensures your assets are inherited by the beneficiaries of your choice. Without a valid will or estate plan, you are considered to have ‘died intestate’, meaning your assets are distributed according to state inheritance laws, not your preferences.
- If you have children, you decide who will care for them and how, rather than leaving these decisions to the courts.
- It helps minimise the taxes that your beneficiaries might have to pay when they receive your assets.
- By planning ahead, you reduce the likelihood of conflicts arising among family and friends after your passing.
What’s included in your will?
Your will is a legal document that forms a crucial part of your estate plan. It specifies how you wish your estate to be managed and how your assets should be distributed after your death.
Therefore, if your estate is relatively simple and you have clear preferences for distribution, you can draft your own will easily. This can be done by purchasing a will kit from Australia Post or select news agencies, or by downloading one online.
We offer comprehensive professional executor services to ensure your will and estate are managed according to your wishes.
Learn more about how we can assist with your Estate Planning here.
Your will checklist:
- Clearly specify your beneficiaries.
- Clearly identify your chosen executor.
- Include the correct date.
- Be signed and witnessed correctly.
- Detail how you want your estate distributed to beneficiaries (including contingency plans if they predecease you).
- Be kept updated.
Should you revise your estate plan?
Life can be unpredictable, making it wise to update your estate plan when circumstances change.
Reasons to update your estate plan:
- Marriage
- Divorce
- Birth of children
- Death of a partner, dependent, or loved one
- Financial challenges
Other things to consider
Planning for life insurance and a funeral can provide peace of mind for your family in the future. For detailed information, refer to ASIC’s Moneysmart guide.
Alternatively, contact us today to schedule your complimentary consultation.
Source: NAB
Reproduced with permission of National Australia Bank (‘NAB’). This article was originally published at https://www.nab.com.au/personal/life-moments/family/will. National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. The information contained in this article is intended to be of a general nature only. Any advice contained in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this website, NAB recommends that you consider whether it is appropriate for your circumstances.
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