In this article we would like to share with you 5 of our key tips to consider when updating your will or making one for the first time.
Many people think that making a will is as simple as deciding who to leave your estate to. However, there are some important considerations that should be front of mind when drafting an effective will: –
Tip 1 – Assets held outside of your name
Anyone with company or trust assets used to operate a business or to hold investments needs to ensure that they deal with the assets in accordance with the rules governing the company or trust. Not understanding that these assets are not your personal assets can cause trouble for those left to administer your affairs if you have not effectively dealt with them in your estate plan.
Tip 2 – Superannuation
Just like assets held in companies and trusts, superannuation is a special type of asset that requires special consideration. Who you hold your superannuation within and the type of nominations you can make with your superfund must be carefully considered when preparing your estate plan.
Tip 3 – Blended family considerations
Increasingly, separation and remarriage lead to claims by children that feel unfairly left out of or ‘short changed’ by a parent. There are a number of strategies that may be adopted by the will maker given the many and varied complications that blended family arrangements present for estate planning.
Tip 4 – Mutual Wills
Couples with children can contract with one another to not change their wills after the passing of one of them. These arrangements, known as ‘mutual wills’, can be used to protect joint assets for the children of the couple.
Tip 5 – Don’t forget your Power of Attorney
Whereas an effective will is essential for your wishes to be carried out upon your passing, it is just as important to protect your interests during your lifetime and a power of attorney is key to this.
Speak with one of our experienced solicitors today about how we can ensure that the above and many other important considerations are taken into account in the drafting of your will.