Wills and why we need them

Chances are you’re familiar with what a Will is, but according to research conducted by finder.com.au over half (52 per cent) of Australians don’t have one in place, meaning that in the event they were to pass away their families could be left at a disadvantage.

Having a Will in place, and keeping it up to date, is one of a few ways you can ensure your family is taken care of in the event of your passing. Here, we break down a few things you need to know about Wills.

What is a Will?

A will is a legal document that outlines how you would like your assets to be distributed after you pass away and details things such as beneficiaries, your executor, allocation of personal items and family heirlooms, requests for your funeral, along with who you wish to name as legal guardian of any children under the age of 18 that are in your care.  

There are some misconceptions that not everyone needs a Will in place or that they are for those who are deemed as ‘well off’, this is not the case given the array of items a document of this nature covers.

Why do I need one?

Creating a Will is a simple measure you can put in place to help your loved ones in the event of your passing. It removes any doubts or misinterpretations that can occur when there is no documented evidence of your wishes in place, and can also help prevent disputes over your estate as well as unnecessary extensions to the probate process.

Having a Will that is clear, legally valid, and up to date will ensure your assets are protected and allocated according to your wishes.

How do I create or update my Will?

There’s no shortage of information regarding how to DIY a Will, however this is not something we would encourage due to the range of complexities that can arise and considerations that need to be taken into account. The good news is, here at Shape Financial we work with estate lawyers that will be able to assist.

You should also keep in mind that there may be situations where your Will may need to be updated. These include marriage, separation, having children and/or grandchildren, acquiring or disposing of assets, as well as events that impact your executor or a beneficiary such as illness or death.  

Can my Will be challenged?

Yes, a Will can be challenged under the basis of fraud or undue influence.

Undue influence refers to instances where at the time of creation, an individual did not act voluntarily with true intentions and coercion was involved.

Fraud in this context refers to instances where intentional misrepresentation or deception occurred.

A Will can also be challenged if an individual, for example a family member, feels that they were entitled to more, left out or unfairly treated.

What is probate?

Probate is usually required when administering an estate and is the process whereby the executor of your estate has to register your Will in your state or territory’s supreme court.

There are situations where probate is not required. The type of assets, their value and the policies of the institutions holding or managing them will determine whether this is the case or not.

What happens if I don’t have a Will?

Situations where an individual doesn’t have a Will in place at the time of their passing evokes the State Intestacy Law. This law determines how your estate will be managed and distributed, which can result in extended costs and timeframes, as well as you not having a say about who is in charge, or who will benefit from your assets.

At Shape we believe in protecting your financial future as well as that of your loved ones, beginning the process of drafting your Will, or ensuring it is up to date may seem confronting, but is something you can do to ensure your family is taken care of.  

To discuss starting the process reach out to our team here at Shape Financial.