A common thing we hear when asking if clients have an estate plan is ‘yes, I have a will.’
The reality is however that a will is just one element of a comprehensive estate plan.
What most people aren’t aware of is the fact that a will does not necessarily cover all of your assets, with extra steps/documents often required to ensure your estate is appropriately dealt with.
If you have any trusts or companies that you own or operate, these must be reviewed to ensure control of these pass to the people you trust to distribute the assets in accordance with your wishes. This is because assets inside those structures are not your assets – they’re assets of the company/trust. Your will can only govern assets in your personal name.
In addition to this, there may be agreements between other parties (such as shareholder, partnership or unit trust agreements) that may effect the way assets are managed on your passing where there is more than one owner.
Critical also is that you consider whether you need to leave directions regarding your superannuation interests (and any insurance components that might be held by your super fund). Such directions are called ‘nominations’ and the type of nomination and the person(s) you nominate needs to be carefully considered as each choice will have different practical and tax implications for both your estate and your intended beneficiaries.
Finally, estate planning is not just about planning for the possibility of dying. Comprehensive estate planning involves looking at how each of the above asset types are managed if you lose capacity. Power of attorney documents (which have slightly different names in each State), direct who should make decisions about your assets, about your personal/medical care and any specific wishes you have around what your attorneys can do (including end of life decisions).
So a will is often not enough. Failing to review each of your asset types and circumstances is critical in any comprehensive estate plan. Have you covered all of your bases?
General Advice Disclaimer
Information provided in our blogs and on this website is general in nature and does not constitute legal advice. While efforts are made to ensure that the information provided is accurate, information may become outdated as legislation and new government announcements are made, or case law develops. Individuals must not rely on this information to make a financial, investment or legal decision as it does not take into account their personal circumstances. We recommend you consult a legal practitioner before taking any steps to take into account your particular objectives, circumstances and individual needs.