Let your will legal document speak for you
When you’re here to supervise your worldly affairs, you can ensure your voice and current wishes are heard and heeded. But what happens when you’re no longer here? What voice will be heard? Will it be your most recent voice; an old voice from several years ago; or the voice of government legislation? Unfortunately, it’s often voice number two, or worse, three.
What is a will legal document?
A will legal document or simply “will” outlines your wishes for property distribution and the guardianship of any minor children. Those wishes may not be carried out if you die without a will legal document. Moreover, your heirs may end up spending more time, money, and emotional energy after you pass away to settle your affairs.
If your will and other estate arrangements have not recently been reviewed, you risk your current voice not being heard. If you have overlooked making it altogether, the government decides how your estate is to be distributed. This reinforces the importance of keeping all of your estate arrangements current. That said, even with the best of intentions, the most up-to-date can be challenged. There have been countless court dramas over wills involving claims and counter-claims. It’s important to remember that people can change, form new relationships, and take advice from different sources.
While the will remains the centerpiece of estate planning, there are additional tools you may not be aware of.
The Insurance Option
An insurance policy taken out on your own life and owned by you becomes part of your estate and is subject to challenge.
However, if your life insurance policy nominates someone other than you as the beneficiary, it does not form part of the estate. It is separate from the will legal document and not subject to challenge. This feature can make insurance an important part of sound estate planning. If there’s any possibility your wishes may not be carried out after you are gone, it might be useful to seek a financial advice about the value of a life insurance policy.
The Super Solution
You may think super is included in your estate and dealt with through a will legal document. Not so. The trustee of your superannuation fund determines how your super is paid upon your death. You may identify a “preferred beneficiary”, however, the fund trustee can override this decision. If you don’t want this to occur, you should complete a binding death benefit nomination, and ensure this is kept current.
Binding Death Benefit Nominations
Superannuation legislation allows you to specifically nominate, with certainty, who will receive your super following your death. These nominations must be in writing and clearly state the names of beneficiaries and any split details between multiple beneficiaries.
Some funds offer non-lapsing binding nominations. However, many binding nominations must be renewed every three years and are only valid if you nominate a dependent. You may also nominate your estate. Binding nominations are still relevant if you have an SMSF.
To ensure it is your voice that takes final control of what you have worked hard for, it is important to see professional advice, which may include consulting an estate planning specialist. If you have any questions, give us a call and we’ll be able to point you in the right decision.
You should be aware that having a will legal document has numerous benefits. Without it, you leave important decisions to a local court and the rules of your state. You won’t be able to choose who inherits your property or other assets. Furthermore, not having a will legal document can make it more difficult for your loved ones to deal with your estate when you pass away.
