Why You Should Have a Will
It’s just part of the way we all live in Australia that typically we don’t like to talk about death or what will happen to our ‘stuff’, both financial and non-financial, after we do die and I believe this is a great mistake.
This is one of the reasons why almost half of all Australians die without a will according to a recent study and as a result, in so many situations, they leave behind a mess for their family to sort out.
Recent research by finder.com.au, found 52 per cent or 9.9 million adult Australians have not prepared an effective will. When questioned why, 34 per cent said they just hadn’t got round to it while 14 per cent claimed they had insufficient assets to make it worthwhile.
This of course is in addition to the large number of wills that have been made and are no longer effective because the personal situation of the person who has passed has changed significantly or where a will was not legally made or witnessed in the first place.
In these situations, the state can and does step in to process your estate in line with the intestacy laws that are in place at the time wherever you do pass and more often than not, this means ignoring what might appear to be your wishes.
It is important to make or update a will whenever you go through important life changing events such as a marriage or divorce or a new child arrives in the family or just because it’s been a while since you made your will and it’s time to review it.
While it’s easy to put off, you may be leaving a mess for those around you.
I think a very good new financial year resolution is to commit to making or updating your will. I know it’s a hassle and it’s also expensive depending on your estate planning needs but the alternative is to leave your finances in a mess.
It’s also important you take the time to document where all your assets are and where possible, make it as easy as possible for your loved ones to sell or pass ownership of your assets to a family member.
For example, I’m thinking of the old Telstra shares you might have bought directly from the company when it first listed on the Australian Stock Exchange and you still have the original paperwork somewhere in a shoebox. These sorts of shareholdings need to be listed on a trading platform so they can be easily sold or transferred.
It’s also worth making a detailed list of any collectibles you might be holding as well as detailing their value and where they might be sold if you want to stop your prize collection of antiquarian books for example being sent in a box to the local opportunity shop.
While it is a nuisance to do, having an up-to-date will not only ensure your wishes are carried out concerning what should happen to your assets, it will also take a large burden away from your loved ones and make their lives much, much easier.