Estate Planning: How to Prepare a Will
Estate planning is a crucial step in managing your financial future and ensuring your loved ones are cared for when you are no longer around. One of the cornerstones of any estate plan is a will. A will ensures that your assets are distributed according to your wishes, provides clarity for your loved ones, and helps avoid disputes after your passing. Below is a comprehensive guide on how to prepare a valid and effective will.
Why You Need a Will
Avoid Intestacy Without a will, your estate will be distributed according to intestacy laws, which may not reflect your intentions.
Protect Your Loved Ones Ensure your beneficiaries are provided for and specific wishes are honoured.
Simplify Administration Reduce the burden on your loved ones by providing clear instructions.
Steps to Prepare a Will
Take Inventory of Your Assets List all your estate assets such as bank accounts, real estate, investments, and personal belongings. Identify non-estate assets such as superannuation and jointly held properties and address these separately.
Nominate Your Beneficiaries Specify who will inherit your assets and in what proportions. Consider contingencies such as secondary beneficiaries if the primary ones predecease you.
Choose an Executor Appoint a trusted individual or professional to administer your estate. Ensure they are willing and capable of fulfilling this role.
Plan for Guardianship If you have minor children, name a guardian to care for them.
Include Testamentary Trusts Consider creating trusts for beneficiaries who may need financial protection, such as minors or those with special needs.
Draft the Will with Professional Help Work with a legal professional to ensure your will meets all legal requirements and minimises ambiguities.
Sign and Witness the Will Your will must be signed and witnessed correctly to be legally valid. Witnesses should not be beneficiaries.
Store Your Will Safely Keep the original in a secure location, such as with your solicitor or in a safe deposit box. Provide copies to your executor and inform your loved ones of its location.
Common Mistakes to Avoid
Failing to Update Your Will
- Regularly review your will to reflect changes in relationships, assets, or legal circumstances.
Ambiguous Language
- Ensure clarity to avoid potential disputes.
Ignoring Legal Requirements
- Work with a professional to ensure your will complies with the law.
Overlooking Non-Estate Assets
- Address assets like superannuation and jointly owned properties through binding nominations or separate agreements.
We realise it can be uncomfortable for anyone to organise their Will or Power of Attorney. However, failing to do so may leave loved ones grieving and burdened by unnecessary administration. So it may seem confronting, but establishing a Will and Power of Attorney is the right thing to do for your loved ones and the assets you've built.
How Acton Wealth Can Help
At Acton Wealth, we collaborate with legal professionals to help you draft or update a will that reflects your wishes and protects your loved ones. We:
Incorporate strategies to manage estate and non-estate assets effectively. Provide guidance on choosing executors, trustees, and guardians.
Contact us today to ensure your will forms a solid foundation for your estate plan and provides peace of mind for you and your family.
