Legal - Making Your Will: 5 Questions to Ask Yourself
Making a Will isn’t something we think about every day, but it’s one of the most important things you can do for yourself and your loved ones. Ensuring that your wishes are clearly laid out can bring a great sense of relief, knowing that everything will be taken care of when you're not around. But how do you know if your Will covers everything you need it to?
Here are five key questions to help you make sure your Will is exactly as it should be.
1. Is Your Will Current?
One of the most common oversights when it comes to Wills is simply not keeping them up to date. Life is constantly changing, and your Will should reflect that. Have there been any significant changes to your family, finances, or assets since you last reviewed it?
For example, if you’ve welcomed new grandchildren, experienced a marriage or divorce, or acquired significant new assets like property, your Will should be updated to include these changes. A current Will ensures that your wishes are still aligned with your present-day reality, and it’s always better to adjust it sooner rather than later.
2. Can Your Executor Carry Out Their Role?
Choosing the right executor is key to ensuring your Will is handled as you wish. But there’s more to it than simply picking a trusted friend or family member. You’ll need to consider if your executor can truly fulfill the role.
Will they have the time and capacity to carry out the responsibilities involved? Administering an estate can be time-consuming and complex, requiring attention to detail. Impartiality is another factor to consider—if there are sensitive family dynamics or potential conflicts of interest, your executor needs to be able to remain fair and neutral.
It’s worth considering whether they’ll need legal or financial expertise to manage any aspects of your estate. You might want to talk to them in advance to make sure they’re comfortable with the role and understand what’s expected of them.
3. Does Your Superannuation Binding Death Benefit Nomination Need to be Renewed?
Superannuation (or super, as it’s commonly known) doesn’t automatically fall under your Will. This is why it’s crucial to make sure your binding death benefit nomination is current and reflects your wishes.
If your super fund doesn’t have a valid nomination, the trustees of the fund could decide who gets your super. That might not always align with your intentions. Most nominations need to be renewed every few years, so check the status of yours and make sure it’s up to date. It’s one of those things that can easily slip through the cracks, but it’s a vital part of ensuring your super goes to the right people.
4. Is Your Will in Sync with Your Super?
Just as with the binding death benefit nomination, your superannuation could be subject to different rules than the rest of your estate. You want to be certain that your Will and your super are working together, not at odds with one another.
For example, you might have left your estate to your children in your Will, but if your super is going to your spouse because of an outdated nomination, that could cause confusion or even disputes. Regularly reviewing both your Will and super can help ensure everything is aligned, providing clarity for your loved ones.
5. Do Any of Your Beneficiaries Have Special Needs or Aren’t Good with Money?
Every family is different, and it’s important to take into account the unique circumstances of your beneficiaries. If any of your loved ones have special needs, for example, you might want to set up a trust to make sure their inheritance is managed appropriately. This can help protect their interests and ensure they’re provided for without affecting their eligibility for benefits.
On the other hand, if a beneficiary isn’t particularly financially savvy, a lump sum inheritance might not be the best option for them. In these cases, you might also consider a trust or staggered payments to ensure their inheritance is used wisely over time. Tailoring your Will to meet the needs of your beneficiaries can bring peace of mind that they’ll be taken care of in the best way possible.
Final Thoughts
Reviewing your Will doesn’t have to be daunting. By asking yourself these five questions, you can ensure your Will remains up to date, your executor is ready and capable, and your loved ones are looked after in a way that truly reflects your wishes. It’s always worth investing a little time and effort now, so you can rest easy knowing you’ve covered everything that’s important to you.
A SAD STORY
I was in the park with my grandson recently, where I struck up a conversation with an elegant older lady. She started crying, so I gave her a hug and we sat on the bench to talk.
It turns out that her husband of 38 years had recently been admitted to hospital, following a nasty fall while out walking alone. She was in her mid 70s, whereas he was in his 80s.
When the accident happened, a passerby called the ambulance, which took him to hospital where he was admitted. It was determined that he was suffering from dementia.
Although she has visited the hospital two to three times each day, somehow, the Public Trust became involved. They froze his accounts and now she is unable to even buy groceries, as he had always taken care of financial matters.
To be clear, they were married through de facto law, but they shared a home, a life and even a dog. Neither had children but they had each other and the husband's savings had supported the wife in their old age.
Unfortunately, neither he nor she had a will in place and no medical proxy. Now that he is no longer deemed cognitive, she is left wondering how she will put their affairs in order. She knows little about the services available, nor her legal. Its all clearly overwhelming.
I did what I could to share what I knew, and asked her to promise me she would seek the assistance of Legal Aid, to get Public Trust out of the picture before they drain his accounts dry with their fees.
Please: if you don't have a will that's current, create one! Ensure your next of kin know your wishes, and appoint someone as your medical proxy.
Even if you have no assets to bequeath, there's still the matter of who makes decisions on your behalf, should you be unable to do so.
(If you're wondering what the key considerations are that you need to make, you'll find helpful information under FINANCE, in The Marigold Lifestyle magazine www.themarigoldlifestyle.com).
Sadly, there's only one thing more unavoidable than taxes.
Death.
Let's ensure we're prepared.
Reader Comments
Julie: In the USA, Wills are State-specific. So, if you move, update your will.
Glenys: Oh, that’s terrifying to read! If you’re in touch with that poor lady , her first port of call urgently needs to be MyAgedCare, if she’s not already registered with them. They’re the Australian government agency for aged care related assessments and services.
So important for anyone over the age of 65 or 50 for Aboriginal or Torres Strait Islanders…… (or 50 or 45+ for A or TSI if low income or experiencing, or at risk of, homelessness) ….. to register with them, and to have an immediate ACAT Assessment, which will determine the services etc (including advocacy) that many people, including that poor lady and her de facto husband, are eligible for.
https://www.myagedcare.gov.au/
Maree: Can I add that a similar thing happened to me because we had no will. We were even married and had children but because there was no will and the children were under age, my father in law ended up controlling our money. It sent me into financial ruin with no ability to make good financial decisions for myself because of probate and letters of administration. This is in Australia. When my children turned 18, I had to sell the family home and pay the children out, with not a high enough salary or and too old to get a mortgage. This left me in a rental market that was unaffordable on my income. My FIL had looked after the children in case I remarried, (which I didn’t) and thrown me to the wolves. Every chance I get, I tell my story and remind people to get their affairs in order no matter what their age!
Deirdre: The Public Trust, a NZ institution, is incredibly difficult to deal with. Her experience can be multiplied many times over. If you have a choice in NZ do not utilize their services!
Jane: Yes very important to have a will & advanced care directive in place for yourself. If u have parents still alive make sure they have the same plus a POA if needed.
Virginia: Oh dear, all this stuff can be so hard & anything from cut & dry! My sister passed 4yrs ago without a Will as she was mentally disabled and was in a home most of her life. Her estate still isn't sorted! My mother passed a few months ago & was allowed to change her Will with Dementia. I've delayed re doing mine as I have a son with a disability so it's a bit more complicated!
Debra: There is a dark comedy on netflix about something similar called "I care a lot" . it is about a crooked legal guardian who takes over seniors' lives and drains all their savings, sells home etc
