Going through a family law matter is a timely reminder that you should always have up to date estate planning documents in place. Your estate planning documents consist predominately of a Will, Power of Attorney and Enduring Guardian. Ensuring you have an up to date Binding Death Benefit Nomination in respect of superannuation is another important component of estate planning.
These documents provide instructions for the administration, management and distribution of your property, safeguarding yourself and your loved ones and minimizing potential conflicts.
Life Changes and Estate Planning
Life is full of changes, and it’s essential that your estate plan reflects your current circumstances. Significant life events such as marriage, divorce, the birth of children, the purchase of a home, or changes in your financial situation can necessitate updates to your estate planning documents. For example, if you get divorced it will revoke any appointments or gifts to your former spouse in your Will.
Protecting Your Loved Ones
One of the primary reasons for having an up-to-date estate plan is to protect your loved ones. Without a Will, you may become intestate which will involve additional steps for your loved ones to take in order to administer your estate. There is also no clear intention by you as to how your estate will be distributed and therefore your assets will be distributed in accordance with the rules of intestacy – which may result in your estate being distributed in a manner that is not your preference. By having a will, you can ensure that your assets are distributed efficiently and according to your wishes. Additionally, well-crafted estate planning documents can help to minimize potential disputes among family members.
Your superannuation does not automatically form part of your estate when you pass away. It is important that you complete a Binding Death Benefit Nomination with your super fund to ensure that your superannuation is distributed in accordance with your wishes. If you complete a standard beneficiary nomination form, or do not complete any forms, the super fund can distribute your superannuation in accordance with its own rules.
In the event of your incapacity due to illness or injury, it’s crucial to have a plan in place to ensure that your affairs are managed effectively.
A Power of Attorney is an important document to ensure that someone you want and trust will be the person who manages your finances while you are alive, in the event that you cannot. Without this document in place before you lose capacity, a loved one will need to apply to become your Financial Manager which can be a lengthy process requiring evidence as to your capacity and that they will be the most appropriate person to manage your affairs.
An Enduring Guardian is a document that you can put in place to appoint a person to make health and lifestyle decisions for you such as where you live and the types of treatment you receive. Similarly, you will want to appoint someone that you trust. Often this document is needed at a time when you are unwell and it creates an added level of stress for your loved ones to have to apply to be appointed as your guardian if you do not have this document already in place.
Conclusion
Having up-to-date estate planning documents is essential for protecting your interests and avoiding stress and conflict for your loved ones. Regular reviews and updates can help you to ensure that your plan reflects your current circumstances and addresses any changes in your personal situation. By investing time and effort into estate planning, you can provide yourself with peace of mind knowing your interests will be looked after into the future.
Written by
Ashlea Taylor
Senior Associate
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