If COVID taught us anything, it’s that sometimes the unexpected can catch us out. So, why not start 2023 on the right foot and get your estate planning in order and make your will?
Despite a will being perhaps the most important document you’ll ever write, less than half of Australian adults have one (47 per cent), according to the *2021 Funeral Experiences Study by funeral provider Bare Cremation. Also concerning is that only 8 per cent of respondents had an estate plan, according to the study.
Read: Inheritance disputes on the rise
If you die without a valid will, it’s called ‘dying intestate’. In that case, certain laws of intestacy apply and your assets will be distributed in a hierarchy set by law – but perhaps not in accordance with your wishes or preferred allocation.
Estate planning is the process of making end-of-life arrangements and preparing key documents like a will and appointing a power of attorney or alternate medical or financial decision-maker.
Without these documents, you could be leaving your family members in the dark when it comes time to make important medical or financial decisions on your behalf.
Read: Common mistakes when writing your will
Sometimes when a family member passes, things can get messy. I’ve seen firsthand the relatives arguing over who gets what and how they think the deceased should be farewelled. Consequently, it can cost thousands in legal fees if the disputes can’t be resolved amicably.
One such case happened in NSW, where two sisters spent $51,000 and three weeks fighting in the NSW Supreme Court over their mother’s $11,000 funeral.
Despite their 93-year-old mum’s wishes for a simple funeral without an argument, the court was forced to intervene. In the end, nobody got exactly what they wanted and the inheritance took an expensive hit.
Read: What happens to your digital data when you die?
The easy way to protect your loved ones and to ensure your wishes are upheld after you’ve passed is to have an up-to-date will and estate planning documents in place, like a power of attorney and Statement of Wishes.
If disputes must be settled with a solicitor or in court, the legal fee can significantly reduce the inheritance you plan on leaving your beneficiaries.
It might sound a bit grim, but getting your ducks in a row with a will and other estate planning documents is a smart and sensible thing to tick off your 2023 to-do list. It’s the only way to ensure your wishes are honoured when you are no longer here to call the shots.
Yajaira Appeldorff is a wills and estate lawyer at Bare Cremation.
* Bare’s 2021 Funeral Experiences Study was conducted between July and September 2021, with 1468 respondents.
Do you have a will in place? Does your will require updating? Have you been involved in an inheritance dispute? Why not share your thoughts in the comments section below?
