Creating a will is one of the most important steps you can take to protect your family and secure your assets. A valid will gives you control over significant decisions that will impact your loved ones and your legacy when you pass away. Here’s why having a legally sound will is essential.
1. Appoint Guardians for Your Minor Children
If both parents of minor children pass away without a will naming guardians, disputes can arise. For example, both sets of grandparents may seek guardianship. Without a clear directive, this can lead to lengthy legal battles and emotional stress for children. In some cases, someone you would not have chosen could be appointed as guardian. A will allows you to clearly choose who will care for your children.
2. Distribute Your Estate According to Your Wishes
Dying without a will means you die “intestate,” and your estate will be distributed under Queensland’s Succession Act.
For example, if a husband passes away leaving a wife and two children, the wife may only receive the first $150,000 of the estate, with the remainder divided among her and the children. This can lead to disputes known as family provision claims, which may cost each party between $50,000 and $150,000.
A clear will helps avoid these issues and ensures your assets go where you intend.
3. Choose Who Manages Your Estate
In your will, you can appoint a trusted executor to manage your estate. Without a will, someone must apply to the court to become an “administrator,” and the outcome may not reflect your wishes. By naming an executor, you simplify estate administration and reduce stress for your family.
4. Protect Your Assets and Minimise Taxes
A lump-sum inheritance can be exposed to poor financial decisions, creditors, or relationship breakdowns. One strategy often used in estate planning is a testamentary trust, which can help protect assets and provide tax flexibility.
These structures may also assist in minimising tax and protecting social security entitlements. An estate planning solicitor can help determine whether this strategy is appropriate for your circumstances.
5. Coordinate with Superannuation, Insurance, and Business Structures
Superannuation and life insurance do not always form part of your estate. Because of this, it is important to coordinate these assets with your estate plan.
Failing to do so can result in unintended beneficiaries or unnecessary tax outcomes. You can read more about superannuation death benefits here: ATO Superannuation Death Benefits.
Proper estate planning ensures your will aligns with your overall financial position.
6. Keep Your Will Updated
A will should evolve as your life circumstances change, such as marriage, divorce, the birth of children, or changes in assets. Regular reviews with an experienced estate planning solicitor ensure your will remains valid and aligned with your intentions.
Ready to Protect Your Family’s Future?
If you’re ready to discuss your estate planning or need assistance preparing a will, contact our award-winning wills and estates team.
- Call us on 07 5576 9999
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