Let’s talk wills: How to get yours sorted without the fuss
Let’s be real—no one loves thinking about wills, but here’s the thing: getting your will sorted is actually one of the most important things you can do for your loved ones. Whether you’re sitting on a pile of gold or just a small stash of treasured possessions, having a will ensures that your wishes are clear, and your family is looked after when you're no longer around.
Did you know that 60% of Australians still don’t have a will? That’s around 12 million people! But hey, it’s not surprising. Talking about life after you’re gone isn’t exactly a fun dinner topic. The good news? Setting up a will is straightforward and could save your family a whole lot of hassle down the line. So, let’s break it down.
The $4.3 trillion transfer: Why having a will matters more than ever
We’re in the midst of the largest wealth transfer in Australian history. Around $4.3 trillion worth of assets is expected to change hands between now and 2050, as the last of the baby boomers pass away. Most of this wealth is tied up in family homes, privately owned businesses, family trusts, and superannuation. So, unless that money is spent before death, it’s coming down the line. The big question is: who does it come down to? And how?
The family feud: Wills and estate challenges
Without a will, things can get messy, and that wealth transfer can lead to some pretty ugly disputes. In fact, research shows that more than 80% of claims against wills come from immediate family—yep, not secret lovers or long-lost relatives like in a Dickens novel. Here’s where it can get complicated. While your will should reflect your wishes, it doesn’t always go uncontested. Over 60% of claims against wills are made by adult children, with partners or ex-partners making up another 20%. Even more concerning is that when these claims arise, 74% of them end up with changes to the original distribution of the estate. And no, it’s not just a legal battle over secret love children or mysterious hidden wealth—it’s usually immediate family at the heart of the challenge.
In Australia, the rules around wills and estates can vary from state to state, and it’s worth remembering that in some areas, extended family or other claimants might also have a say. That’s why it’s crucial to get your will professionally reviewed to make sure you’ve covered all bases.
Understanding some will basics
Before diving into how to make a will, it’s good to know a couple of key terms that might pop up:
Executor: This is the person or organisation you appoint to carry out your wishes when you’re gone. Think of them as the manager of your estate.
Beneficiary: This is who gets your stuff. You can name a person or an organisation to receive your assets when you’re no longer here.
Intestate: This is what happens if you pass away without a valid will. Your assets get divvied up according to the law in your state or territory, which might not line up with your wishes.
Making a will – It’s easier than you think!
You can either DIY it with a will kit or an online service (for a small fee), or if you’ve got a more complicated estate, it might be worth hiring a lawyer to draft it up properly. Sure, the professional route costs a bit more, but it guarantees everything is airtight, and you won’t leave behind any legal mess.
Oh, and don’t forget—once you’ve got your will sorted, it’s important to update it as life changes. Getting married, divorced, or having kids? That’s a sign it’s time for a will refresh. If you don’t keep it up to date, your will might not reflect your latest wishes, which could cause drama for your beneficiaries later on.
Why you should think about life insurance too
Having a will ensures your loved ones inherit your assets, but sometimes that’s not enough to keep them financially secure. This is where life insurance steps in. A life insurance policy pays out a lump sum to your beneficiaries if you pass away, which can help cover big expenses like funeral costs, paying off debts, or just giving your family a financial cushion to get through tough times.
If you’re unsure about what kind of life insurance policy you need, chat with a financial adviser. They’ll help you work out what’s right for you and your family’s future, so your loved ones are fully protected.
Sorting out a will is one of those adulting tasks we all need to tick off. So, why wait?
References:
If you don’t, who will? 12 million Australians have no estate plans | finder.com.au
The numbers don’t lie – the rise and rise of inheritance claims | solomonhollettlawyers.com.au
Wills and powers of attorney | Moneysmart.gov.au