An estate plan will ensure your wishes are carried out when you pass away. It can also assist if you become unable to make your own decisions.

Your estate plan can include the following documents;

  • Your will
  • A testamentary trust (as part of your will)
  • Superannuation binding nominations

In addition it covers how you would like to be cared for – medically and financially – if you are no longer able to make your own decisions, these documents may include;

  • A power of attorney
  • A power of guardianship
  • An advance healthcare directive

Your situation and what you would like to trust others with will determine the documentation required.

Including your tax accountant in the estate planning discussion

As noted above your estate is more than just a will. By including your tax accountant in the estate plan discussion your wealth can transfer smoothly and tax effectively to your intended beneficiaries.

Things you should consider when drafting a will

  • Who would you like as your executor,
  • How would you like your assets distributed,
  • How your property was purchased will determine what happens to it – joint tenant or tenants in common,
  • Do you have any liabilities, such as mortgages or loans,
  • Who will care for your children,
  • Is there a family trust or company,
  • Do you have preferred funeral arrangements

When should you review and update your will

Significant changes in your life that occur between when your will is made to the time you pass away could have an effect on the content of your will. As a result, it is important to review and update your will to ensure your wishes will be carried out.

These changes or ‘life events’ could include;

  • Relationship milestones – a new long-term relationship, marriage, separation or divorce
  • Additional family members – the birth or adoption of a child or grandchild
  • Financial or asset changes – a substantial purchase or sale of an asset
  • Previous will adjustments – the death or bankruptcy of a beneficiary or executor.

Is a lawyer really required to draft your will

While you may be able to find a DIY kit online, it is important to remember these are generic templates and may not cover areas that are unique to you. A DIY kit may cause more issues and headaches for your loved ones if they are not completed correctly which could result in your Estate not being administered the way you would have liked or it may be invalid.

What is not automatically included in your estate

It is important to note your superannuation and life insurance are not automatically included in your estate and would need to be addressed outside of your will to ensure they go to the right people.

A binding nomination will direct the super fund trustees on who your super benefits are to go to.

What is a testamentary trust

A testamentary trust is a trust created by a Will. It is generally a discretionary trust which gives the trustee discretion on who receives a distribution, thereby ensuring the inheritance goes to the intended beneficiaries.