Why You Need a Will, Even If You Think You Don't

You do not need to own a home, have children or consider yourself wealthy to need a Will. A Will is a legal record of what should happen to the assets and belongings that form part of your estate, who should manage them and who you want to benefit.

For many people in their working years, estate planning feels like something to deal with later. Yet this stage of life often brings frequent change: a new relationship, growing super, buying a first home, starting a business, having children, separating or taking on caring responsibilities.

A Will provides a way to record your wishes as your life and financial position develop.

You may have more than you realise

Even if you do not own property, your estate may include:

• money in bank accounts

• investments, shares or cryptocurrency

• a car and other valuable belongings

• business interests or money owed to you

• jewellery, furniture and sentimental items

• digital assets or online accounts that may need to be identified or managed.

The value of these assets is not the only consideration. You may care deeply about who receives a particular item, who manages your affairs or who takes responsibility for something important to you.

Your super may also be one of your largest financial assets, but it does not automatically form part of your estate. Your super fund considers any valid beneficiary nomination, its rules and superannuation law when determining how a death benefit is paid.

If you want your super to form part of your estate, you generally need to nominate your legal personal representative where your fund allows this. Making a Will and reviewing your super beneficiary nomination are therefore related but separate parts of estate planning.

A Will does more than divide money

A valid Will allows you to appoint an executor. This is the person responsible for identifying and collecting estate assets, paying debts and expenses, and distributing what remains according to the Will.

It can also record who should receive particular belongings or a share of your estate. This may matter if you want to provide for a stepchild, friend, charity or another person who may not automatically inherit under intestacy law.

You can also include instructions about who you would like to care for a pet and what should happen to items with financial or sentimental value.

For parents, a Will can record your preferred guardian for children under 18. The final decision may ultimately rest with a court where required, but formally documenting your wishes provides important guidance.

A Will can also include arrangements for managing an inheritance for a child or vulnerable beneficiary. These situations may require specialist legal advice.

What happens if you keep putting it off?

Without a valid Will, the assets that form part of your estate are distributed under the intestacy laws of your state or territory rather than according to unrecorded personal wishes.

Those laws follow a prescribed order based on legal and family relationships. They cannot know that you wanted a close friend to receive your record collection, your sibling to care for your pet or a particular charity to receive a gift.

No property and no children does not mean there is nothing to decide. It may simply mean your estate plan is less complex and easier to put in place now.

Your Will is only one part of the picture

Estate planning can involve more than a Will.

Your super beneficiary nomination needs to be considered separately. Jointly owned property may pass according to how ownership is structured. Trust assets may be governed by the trust deed rather than your personal Will.

Depending on your circumstances, an estate plan may also include powers of attorney or other documents dealing with who can make financial, legal, health or lifestyle decisions if you become unable to make them yourself.

You may not need every document or arrangement. The important part is knowing what applies to you rather than assuming your Will controls everything.

Review your Will as life changes

A Will should not necessarily be something you create once and forget.

Consider reviewing it after significant events such as:

• marriage or separation

• the birth or adoption of a child

• buying or selling a home

• starting or selling a business

• a major financial change

• the death of an executor or beneficiary.

Marriage and separation can also affect an existing Will depending on the law that applies, while super beneficiary nominations may need to be updated separately.

The goal is not to predict every future possibility. It is to put clear instructions in place for your circumstances today and review them as life moves on.

A free Money Check-Up can help you take stock of your current financial position and identify areas, including Wills and estate planning, that may need attention.

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