“Nothing is certain but death and taxes”
While nobody likes to think about what happens when we die, when it comes to administering a person’s estate what we should be thinking about is what happens when other members of our family pass away.
Having a valid will that is properly constructed and deals with the property of the estate in a clear and effective manner is vitally important to make sure tthat this difficult period is not made any more stressful than it needs to be. Without a valid or effective will, the remaining family members will have more stress to deal with and may end up losing a large portion of the estate to costs such as legal fees and taxes.
Take this example of the effect of dying without a will: a man died in his 30’s leaving behind a wife and two young children. As he didn’t have a valid will, the Public Trustee administered the estate. They were legally obliged to following the law and distribute the estate equally between the wife and two children.
As the children were under 18 their share of the estate had to be held in trust until they were 18, which required the sale of the family home to be able to make this happen. As a result, the wife was left with no family home and only one-third of the value of the estate. The money held in trust for the children had to be administered by the Public Trustee and could not be accessed until the children turned 18.
Value Beyond can help you get prepared to make a will by:
- identiifying your assets so they can all be properly dealt with
- Mapping out the structure of your ownership of assets, including companies and trusts
- Highlighting the tax effective ways in which your assets can be dealt with
- Get you thinking about the decisions you need to make prior to seeing the lawyer
What if I don’t have a will?
When a person dies without a will, that person is said to die intestate and the estate is then administered by the Public Trustee. The estate is then divided up according to the state’s intestacy laws, which can divide up the estate between spouses and children. Assets that are included in your estate include your possessions, real estate, cash and superannuation benefits.
Sometimes we think that there is not much in our estate, but when superannuation is included this can increase the value of the estate. Depending on your circumstances, this money could be needed by your family.
It’s fine, I made a will years ago
Life events such as marriage, divorce, birth of a child, death of a spouse or partner, entering a defactor relationship or the death of a beneficiary can impact the validity of your will. If you haven’t made a will since one of these life events, then you don’t have a valid will and could die intestate. This may result in your assets being distributed in a manner that is against your wishes.
Why your family should make sure you have a will
As the outcomes of not having a will affect the remaning family, your family should be encouraging you to make sure you have a will. Another important document that may assist you is an enduring power of attorney. This gives the nominated person the power to deal with your assets if you are still alive but unable to make decisions for yourself. This might occur due to illness or accident, or you may be out of the country.
What do I do now to sort out my affairs?
Contact Value Beyond to discuss how we can help you make sense of your estate planning, so that you are organised and have thought through the outcomes you want prior to seeing the lawyer to have your will prepared.