A valid Will determines how your estate is managed after you die. Your Will can appoint a family member, trusted friend, or professional to administer your estate (your executor), nominate guardians for young children, decide who will receive your assets, and give instructions for funeral and burial arrangements.

Without a Will, someone you may not want could finalise your estate. Consequently, legislation will dictate asset distribution, which can create stress, complexity, and higher costs for your loved ones.

No matter your age, health, or financial situation, dying intestate (without a Will) can add stress for your family and may prevent you from having a final say on your estate. Therefore, planning ahead is essential.

What happens to your estate when you die without a Will?

If you die intestate, legislation in your jurisdiction determines how your assets are distributed. Rules follow a specific order to the deceased’s next of kin depending on each situation. However, these rules may not consider your wishes or personal circumstances.

This distribution is called the rules of intestacy or statutory orders. Each jurisdiction has a different process, and importantly, these rules may not reflect your intentions.

What can go wrong?

Legislation aims to reflect societal expectations about who should benefit from a person’s estate. Yet, most families are not standard. Many are blended, and wealth distribution is often unequal.

Dying intestate may not ensure fair or intentional estate distribution. As a result, consequences can include:

• family members or important people missing out on inheritance;
• disproportionate asset distribution or leaving out needy beneficiaries;
• distribution to a family member with whom the deceased had no meaningful relationship.

More convincing reasons to make a Will

An executor is a legal personal representative under a Will who oversees estate administration. An administrator has a similar role but is appointed by the Court when someone dies intestate. In addition, next of kin may apply for this role, but this is not always desirable.

Family dynamics may make a third-party executor preferable to remove emotional factors and ensure impartiality. Only a Will allows you to nominate a specific executor.

Failing to make a Will may also forgo opportunities for tax-effective asset distribution or protection of vulnerable beneficiaries. For example, a testamentary trust in a Will can provide flexibility, control, and protection of assets for future generations. Additionally, it can safeguard assets from third parties and creditors and accommodate different scenarios.

Summary

Having a Will ensures your voice is heard after you die. You can state your testamentary wishes and identify beneficiaries. Furthermore, good estate planning can improve tax-effective asset distribution and protect vulnerable beneficiaries.

No matter your age, health, or financial circumstances, delaying a Will is unwise. Therefore, it is best to plan ahead.

This information is general. Obtain professional advice relevant to your circumstances. For more information or assistance, call 07 5495 2608 or email [email protected].