Why have a will?
Surprisingly, research conducted by Finder.com in 2022 found that roughly 60% of Australians do not have a will. While this statistic might have legal professionals sweating, others might wonder what the big deal is and whether having a will is worthwhile.
What happens when you don’t have a will?
When you do not have a will when you pass, this is referred to as dying “intestate”. Your estate is then administered either by your relatives or State Trustees. They must apply your State’s intestacy laws in determining how your estate (savings, your house, debts, and investments) should be managed and distributed.
What’s the downside?
You might wonder, well if the State Trustees can just handle my estate, why make a will? Well, here are some reasons you should consider making a will, provided by the State Trustees themselves:
“A will that is clearly written and up to date can:
- Define who you would like to take on the role of executor to administer your estate;
- Aid your executor in understanding how you would like your affairs managed;
- Help ensure all your assets, including property and other possessions, are distributed in accordance with your wishes;
- Set out the beneficiaries (individuals or organisations), you want to benefit from your estate;
- Appoint a guardian for your minor children and outline any wishes for how they should be brought up;
- Reduce any potential conflict relating to your estate after your death by clearly stating your wishes; and
- Help to enable your estate to be settled quickly and with ease”.
We would also add that the legal fees payable by your estate are typically lower with a well drafted will, meaning more money going to the people or places you want it to go.
It’s not about you
The Finder.com study mentioned above also notes that many people without a will would be motivated to make a will if they were to; get sick or terminally ill, have kids or if they come into money.
While winning the lotto is statistically almost impossible, having children is much more likely and falling sick or terminally ill is practically unavoidable.
So, our advice? Don’t bet on winning the lotto or on having a chance to draft a will when you are lying on your deathbed or dealing with the throws of new parenthood.
Thinking about wills and estate planning is uncomfortable, there’s no way around it, however, everyone dies and there’s no way around that either. When advising clients, we at Forty Four Degrees like to remind them, it’s not about you, it’s about the people you love. Making a will is ultimately about protecting and providing for loved ones and ensuring that your hard-earned money ends up where you want it to, whether that is in the hands of a much beloved child or spouse or in the coffers of a very deserving charity.
It's too expensive
We absolutely agree, a well drafted will by an educated professional is, understandably expensive. However, we at Forty Four Degrees believe that everyone deserves the protection of a well drafted will. We offer lower-costs and more extensive options for you to consider.
The key thing to remember? The cost of a will, even a complex testamentary trust will, is still less than the extra costs that your family will have to pay if you die without a will.
Getting started
If this article has you ready and rearing to make your will, we are happy to help, you can book a free consultation by contacting our team at 1300 892 237 or
[email protected]
