Making a will is an important way to help ensure that your wishes are respected and your loved ones are taken care of if you pass away.
A will is a legal document that sets out how you want your assets, such as property, money or possessions, to be distributed among your beneficiaries in the event of your death. Yet, according to a Finder survey, 60% of Australians (about 12 million people) don’t have one. Understandably, it’s something many people don’t like to think about, however it’s straightforward to set up and could make a big difference to your family during an already difficult time.
Understanding the terminology
There are some terms that are helpful to know when making a will:
An executor is the person or organisation that you appoint in your will to carry out your wishes and manage your estate.
A beneficiary is a person or organisation that you name in your will to receive all or part of your estate after your death.
Dying intestate means dying without a valid will, which leaves your estate to be distributed according to the law of your state or territory.
How to make a will
You can make a will yourself using a will kit or an online service for a small fee, or you can hire a lawyer to draft your will if your estate is complex. The advantage of using a professional is that they can ensure your will complies with the law and meets your specific needs and circumstances.
It’s also important to review and update your will regularly, especially when your personal or financial situation changes, such as in the case of getting married, divorced, having children or inheriting assets. If you don’t update your will, it may not reflect your current wishes and may cause problems for your beneficiaries.
Consider life insurance
While a will can ensure your loved ones inherit your assets, this may not be enough to financially support them in your absence. Life insurance pays a lump sum benefit to your beneficiaries if you pass away, provided the relevant policy terms and conditions are met. It may help your family cover funeral expenses, pay off any debts you had and help improve their financial security as they continue life without you.
A financial planner can help you create a plan to safeguard your loved ones’ financial future with a life insurance policy that suits your needs.
Reference:
If you don’t, who will? 12 million Australians have no estate plans | finder.com.au
Wills and powers of attorney – Moneysmart.gov.au
Source: TAL
