Estate planning is an essential part of preparing for the future, but there are many myths and misconceptions surrounding the process. In this post, we’ll debunk six common myths about estate planning and provide you with the information you need to make informed decisions about your estate.
Myth 1: Estate planning is only for the wealthy
One of the biggest myths surrounding estate planning is that it’s only for the wealthy. This couldn’t be further from the truth. Everyone, regardless of their financial situation, should have an estate plan in place. An estate plan ensures that your assets are distributed according to your wishes and can help prevent disputes among family members after you’re gone.
Myth 2: A Will is all you need
While a Will is an important part of any estate plan, it’s not the only document you need. In addition to a Will, you should also consider preparing an Enduring Power of Attorney and an Enduring Guardian. These documents allow you to appoint someone to make financial and medical decisions on your behalf if you become unable to do so.
Myth 3: You don’t need a lawyer to create an estate plan
While it’s true that you can create an estate plan on your own, it’s always a good idea to consult with a lawyer. Estate planning can be complex, and a lawyer can help ensure that your documents are legally valid and that your wishes are carried out. There are a number of companies offering online Will services and apps, but we firmly believe that Estate Planning is too critical to leave to an algorithm.
Myth 4: Once you’ve created an estate plan, you never have to update it
Your life is constantly changing, and so should your estate plan. It’s important to review and update your estate plan regularly to ensure that it reflects your current wishes and circumstances. Major life events such as marriage, divorce, the birth of a child, or the death of a loved one can all impact your estate plan.
Myth 5: If you die without a Will, the government takes everything
If you die without a Will in NSW, your assets will be distributed according to the rules of intestacy. While these rules vary depending on your circumstances, they generally provide for your spouse and children first. The government only takes everything if you have no surviving relatives. One of the most significant problems that arise when someone dies without a Will, apart from the distribution of assets in a way that may not align with their wishes, is that their family will have to endure a more difficult administration process. This process can be more time-consuming and expensive as a result of not having a legal Will.
Myth 6: My superannuation will be treated in accordance with my will
While you may perceive that you own your superannuation, it’s actually held in a trust by the super fund. To ensure your super, including any life insurance within the fund, is distributed according to your wishes, you need to provide the trustee with a binding death benefit nomination. This written nomination specifies who should receive your death benefits. However, each super fund trust deed is unique and may have specific requirements for the nomination. It’s crucial to adhere to these requirements to ensure your nomination is binding on the trustee.
In conclusion, estate planning is an important process that everyone should undertake, regardless of their financial situation. Don’t let these common myths prevent you from taking control of your future. Call us today (02 8065 5051) and let us create an estate plan that reflects your wishes and protects your loved ones.
Our fixed-price will package provides you with the certainty of knowing exactly what you’ll pay, while also ensuring that you receive the expert guidance of a lawyer with extensive experience and qualifications in estate planning.