Why should everyone have a will in place?
Most young people do not immediately consider writing a will as it puts the image of death and old age at the forefront of their minds, but ultimately we will all die someday and it is just a matter of when. As such, estate planning lawyers in Melbourne will usually advise you on two separate documents you can have in place of an untimely occurrence: a will and an enduring power of attorney.
A will only comes into effect after you die, while an enduring power of attorney applies while you are still alive but unable to make decisions for yourself (e.g. in the event of serious brain damage from a stroke or head injury). This document enables you to appoint an executor of estate on your behalf to carry out your wishes as specified, including the settlement of any debts. Your estate does not simply have to concern monetary assets or property; it can include the passing on of objects or possessions with sentimental value to your loved ones.
Not only are these documents extremely important for everyone irrespective of age, but it helps you gain more perspective about the complexity of your estate. If the unexpected happens to someone and they do not leave a will behind, it can be a messy situation between their loved ones to resolve their affairs and any inheritance they may have left behind. So if you are a young person who already has investments in place, it’s a vital document to consider to make sure you have peace of mind.
Are there risks involved in preparing a will?
Risky planning of estate often occurs when someone attempts to draft a will on their own using an online DIY will, or a ‘free’ will from a public servant. In reality, it is best advised to consult experienced estate planning lawyers in Melbourne to help you draft your will, to avoid ambiguous language or improper declaration of assets. These can often lead to the will being contested and your family having to represent you through a lengthy and taxing affair in court.
For instance, your superannuation is held by your super trust fund and not considered a personal asset, so it cannot be included in your will; instead, you will need to appoint a beneficiary to receive your super after you die. Since they are eligible to receive tax benefits upon execution of the estate, it is important to clearly specify your trusted beneficiaries so this is not contested later and keep these nominations updated at least every three years.
With more young people having a sizable social media presence, these accounts can also be considered as digital assets, and should be dealt with on the same terms as physical assets. Platforms such as Facebook and Instagram give family members the option to memorialise the account of a person who is deceased, and these instructions as well as the management of email addresses and cloud storage can be included in your will!
Consult the best estate planning lawyers in Melbourne for peace of mind
Young or old, everyone should be prepared in the event of unexpected pitfalls, and this includes having a soundly written will in place. Our experienced wills and estates team at P&B Law will guide you through the process minus the stress – make an appointment with us today.