Do I need a will in Australia?

Many of our clients have had making a will on their 'to do list' for years when we first see them. Whilst it can be unpleasant to think about death, setting up a will through an experienced estate planning lawyer is essential.

If you pass away without a will, the law decides who gets your assets which may not be as per your wishes. When you 'die interstate' in Victoria:

A person's partner usually receives the full estate. Even if you are in your first marriage and have children from the same relationship, a will is still essential to set up in order to nominate guardians for your children.

If there were also children from another relationship then some of the estate may also go to those children, but this depends on how much money was left in the estate. This won’t happen unless there was about $500,000 in the estate after all debts and funeral expenses have been paid.

If there were children but no partner, the estate is distributed to the children equally.

If the person had no partner or children, then all the estate goes to relatives in this order:

1. Parents

2. Siblings

3. Grandparents

4. Aunts and uncles

5. Cousins.

A will allows you discretion and for your wishes to be respected, for instance to also include charities.

When setting up a will it is also important to set up Powers of Attorney in the event of future incapacity which could occur out of the blue at any time due to illnesses or injuries.

It is also important to remember that not all assets are 'estate assets'. Assets such as superannuation and life insurances require separate nominations and joint assets transfer automatically to the other party. For this reason, if you ever buy an asset with someone who is not your spouse, you should seek legal advice.

Financial Planners can assist in introducing you to the right Estate Planning professional whilst also considering Financial implications of inheritance such as capital gains tax and taxable components of super when paid to non-tax beneficiaries.

If you need help in any area or to be connected with a trusted Estate Planning professional, reach out at support@sourcewealth.com.au