Why Do I Need a Will?
I want to help people live a life by design. Yet, after all this time, working with people on goal setting and structuring their finances; I continue to see an especially important piece of the planning puzzle either misunderstood or completely missing… A Will!
I know, I know, it's not the most exciting topic, but trust me, it's crucial for everyone in Australia to have one.
Firstly, what exactly is a Will?
A Will is a legal document that says what you want to happen to your money and any other possessions after you're gone. It's basically leaving instructions for your family and friends about who gets what. Pretty simple, right?
Yet so many Australians don't have a Will! Perhaps they think they're too young, or they don't have enough money, or they just haven't gotten around to it. Or the classic response “I won’t be here, they can sort it out” But let me assure you, having a Will is important for everyone, no matter how old you are or how much money you have.
Why?
You're in control: A will lets you decide who gets what. Without one, the government steps in and makes those decisions for you. Furthermore, it could take years and years and years to finalise. Guess who pays the government for this, you! Or more accurately, your estate. So, while you may not mind which of your loved ones receive your treasures or hard-earned life savings, not many people in my experience wish to leave their estate to the government.
It's easier on your family: Losing someone is tough enough without adding legal headaches to the mix. A clear will can help prevent family disputes and make the whole process smoother and faster. (remember, it’s your estate that pays if it gets dragged out).
Protecting the kids: If you've got young children, you can use your Will to say who you want to look after them if something happens to you. This is huge - you don't want the courts deciding who raises your kids! And if you have adult children or vulnerable loved ones, a will can protect them from being taken advantage of too.
Tax benefits: With some clever planning, a will can be set up to minimize tax for your beneficiaries. That could save them thousands of dollars. Some of these are simple low to no cost strategies and others can be incredibly comprehensive, leaving no stone unturned. It depends on your needs.
Supporting causes you care about: Want to leave something to your favourite charity? Pop it in your Will. What matters to you? What would you like your legacy to be?
While I am not a Lawyer and cannot give Legal advice, I do educate and facilitate the process for many as this is a topic very close to my heart. Effective and comprehensive Estate Planning can be as simple or complex as you want or need. It should consider Powers of Attorney, Enduring Guardians, and in some cases, Testamentary Trusts. But first and foremost, get a Will!
If you need to be pointed in the right direction, please reach out. Or speak to a trusted Adviser you may already have.
We put so much time and effort into planning things like holidays, home purchases, and setting up strong foundations for ourselves and loved ones, only to let that time, money, and effort often go to waste if we don’t have Estate Plans.
And yes, you can plan to get around to it “one day” but is “one day” guaranteed?
