Why you need an up-to-date Will, an Enduring Power of Attorney and a binding death benefit nomination for your superannuation BEFORE Christmas, explains Attwood Marshall Lawyers’ Legal Practice Director Jeff Garrett.
Considering your estate planning needs before you take a break over the festive period might not be on everybody’s holiday planning list, but just as you might take out travel insurance when booking your flights – not because you anticipate the worst but as a precautionary measure – the same principle applies to your estate planning and doing a Will. This isn’t merely paperwork; it’s preparing for the unexpected to protect yourself, your assets, and your family.
The Christmas Holiday Effect or as others might know it, the Holiday Death Spike is a habitual rise in mortality rates during the festive period as first documented by sociologist David P. Phillips. His study identified a pattern consistent across all age groups, except for children, of death by various conditions such as heart disease, respiratory issues, and cancer over the festive season.
Combined with the risks associated with increased travel and the usual antics of inebriated revellers over the holidays, you never know when your number is up.
It is unbelievable that approximately 50 per cent of Australians either do not have a Will or have not updated their Will for a very long time. A much higher percentage do not have an Enduring Power of Attorney or a binding death nomination for their superannuation.
In over 40 years of working in the legal industry, I’ve heard all the excuses you can imagine – ranging from not wanting to tempt fate by doing a Will to ‘I’m too young to die’. Another common reason is that it is too expensive! Would you not insure your house or your car? Of course not! The costs of doing a Will with an experienced estate planning lawyer are often less than what you would pay for your insurance!
So, do yourselves a favour and make an appointment to discuss your estate planning before Christmas! We have a dedicated team of experienced estate planning lawyers waiting to take your instructions before the Christmas break. All you have to do is call us or email us to make an initial obligation free appointment.
The three vital documents you need before you travel
Estate planning is a highly personal process and should reflect your unique family situation, assets, and your testamentary wishes. There are three vital documents that everyone should have as a minimum.
Your Will
Whether you are travelling or not, having an updated Will is fundamental to estate planning. Unforeseen events can occur at any time, and the holiday season is no exception.
By updating your Will before you travel, you can deal with extremely important decisions, including appointing an executor and a guardian for dependent children and planning for their inheritance.
Don’t leave these critical decisions to chance or the courts to decide; take control of your family’s future by putting the necessary thought and documents in place.
Your Enduring Power of Attorney (EPOA)
This document is a crucial document that applies while you are still alive. In Queensland, it is a single document that allows you to appoint an attorney to make financial, personal and health-related decisions.
New South Wales is slightly different and requires two separate documents (Power of Attorney and Appointment of Enduring Guardian) to deal with financial and health-related decisions.
If you are unable to return home due to an unexpected event or if you suddenly suffer an injury or illness that impacts your decision-making capacity, having an EPOA in place allows someone of your choosing who you trust to handle your financial and personal affairs.
Whether signing essential documents or making health-related decisions on your behalf, the EPOA ensures your affairs are managed seamlessly without your attorney having to go through lengthy court processes to be given the power to step into your shoes and assist you.
There is a common misconception that our loved ones can automatically step in and make these decisions. However, if the unexpected happens, without this document it can be extremely difficult and stressful for all involved.
Read more about Enduring Powers of Attorney
A Binding Death Benefit Nomination – Superannuation
Many people often overlook their superannuation when it comes to estate planning. Superannuation benefits are non-estate assets, which means they cannot simply be dealt with by listing this asset in your Will.
Superannuation benefits require a specific approach for distribution. A binding death benefit nomination is a document that lets you specify who should receive your superannuation benefits after your passing. Without this nomination, the superannuation fund’s trustee has discretionary power to choose who should receive these funds, potentially resulting in your assets not going to whom you would have wanted to receive them.
Ensure your wishes can be fulfilled by completing this document, signed and executed similarly to a Will.
If you fail to execute the document correctly, it will be invalid.
Read more about superannuation and succession
Explore additional estate strategies
Testamentary trusts are a good way to better protect a beneficiary’s inheritance from bankruptcy, divorce, or taxation implications. The popularity of this type of Will has grown in recent years primarily because the Will allows the will-maker to exercise control over the future use and application of their assets, unlike a traditional Will where the assets pass directly to the beneficiary personally.
For individuals who have beneficiaries with special needs, a special disability trust can secure lifetime care for vulnerable family members. Almost 20 per cent of Australians live with a disability. As the population ages, it is expected this proportion will increase. Special disability trusts are a powerful estate planning tool which secures the financial future of loved ones with a disability or someone who does not have the capacity to handle their affairs, ensuring their needs are met long after you’ve passed on. It can also help to ensure the Public Trustee does not become involved in your loved one’s financial affairs later in life.
Attwood Marshall Lawyers – Leading estate planning lawyers
This holiday season, give yourself peace of mind by ensuring your estate plan is in order before you travel to ensure that your loved ones are protected, allowing you to enjoy your holiday confidently knowing that your affairs are well-managed.
Attwood Marshall Lawyers has one of the country’s most experienced Wills and Estates departments, and our friendly team is passionate about helping people document their wishes. The process does not have to be overwhelming and is simpler than you may realise!
To understand what documents you may need to put in place for your estate plan or to update your Will, please call our Wills and Estates Department Manager, Donna Tolley, on direct line 07 5506 8241, email dtolley@attwoodmarshall.com.au or free call 1800 621 071 anytime.
You can also make an appointment with any of our lawyers by visiting our website and using our online booking app. Our estate planning lawyers can meet with you at any of our conveniently located offices at Robina Town Centre, Coolangatta, Southport, Kingscliff, Brisbane, Sydney, and Melbourne.
