What is included in an estate plan?
In most cases, though, a will is an integral part of your estate plan, along with other documents such as:
- A testamentary trust
- Superannuation binding nominations
- A power of attorney (concerning financial decisions)
- A power of guardianship (concerning medical care and life decisions)
- An advance healthcare directive (preferences for future care)
Taken as a whole, these documents (including the will) spell out exactly how you want to be cared for now, in the future, if you become ill and unable to make your own decisions, or if you pass away and assets then need to be distributed to designated benefactors. If you are unsure what these documents mean, it’s a good idea to consult estate planning lawyers in Melbourne who will have the expertise to help you. Let’s take a look at each of these documents in more detail.
Your will
Your will outlines how your assets will be allocated after your death. You may want to include important details in your will concerning:
- Who will receive your assets
- Who will rear your young children (if you have any)
- Details of any applicable trusts
- Financial donations to charities you want to make
- Funeral plans
Many DIY will kits are available on the market, but it is inadvisable to use them, as if your will is not prepared correctly, it could be considered invalid, and then the law will determine who gets your assets. Always hire trusted estate planning lawyers in Melbourne for advice which could save your family extra legal costs and potential arguments down the track. You can also have a will written by a Public Trustee, who may not charge you under certain circumstances. Here’s more information on Public Trustees in Victoria.
Wills and estate planning – testamentary trust
A testamentary trust is part of your will. It begins when you die, and a trustee administers it. You name the trustee in your will. A testamentary trust holds onto your assets until your beneficiaries reach a certain age or complete a specific “goal” such as getting married or gaining a qualification. Testamentary trusts are beneficial in such cases where beneficiaries:
- Are minors
- Have impaired mental capacity
- May squander their inheritance
Or you may consider a trust to prevent assets from being dragged into a divorce settlement or bankruptcy proceedings. The right estate planning lawyers in Melbourne can advise you on such matters.
What are superannuation binding nominations?
A binding nomination must be used to legally communicate to the super fund trustee whom you want your super balance to go to when you pass away. It is vitally important that you nominate someone. Otherwise, the matter is left to the discretion of the super fund trustee.
The different types of power of attorney
A power of attorney allows you to nominate someone else to legally carry out your affairs. The person you choose must be trustworthy, financially astute, and available when you need them.
General power of attorney
A general power of attorney can cover financial and legal matters for you, but this is only valid for a specific time. For example, if you’re on holiday for an extended period and can’t manage things in your home country for that time. A general power of attorney is not used for instances where you cannot make decisions for yourself.
Enduring power of attorney
An enduring power of attorney (EPA) is able to make financial and legal decisions for you even when you become unable to make them for yourself.
Medical power of attorney
A medical power of attorney can make decisions on your behalf concerning medical issues if you become unable to do so yourself.
For the best advice on wills and estate planning, call P&B Law
If it’s time for you to consider wills and estate planning, then it’s important that you come to the right estate planning lawyers in Melbourne. At P&B Law, we have highly experienced lawyers who can help you through the maze of wills and estate planning. Contact us to benefit from our insights today.