Canberra: Planning for the future is never easy, especially when it involves confronting our own mortality. However, creating a will is an essential step that everyone should consider, regardless of age or financial status. The process can bring peace of mind and ensure that your loved ones are cared for according to your wishes.

Why Start Early?

According to Kimberley Martin, an estate planning lawyer in Hobart, failing to plan ahead can lead to complications for those you leave behind. "The mess you will leave behind for people who will care for you is so much greater if you don't take steps to put that plan in place," Martin warns.

Phillip McGowan, an accredited specialist in estate law based in Sydney, suggests that the ideal time to start thinking about a will is when you turn 18 and start earning an income. "The earlier you start planning, the better," he says.

When Is a Will Particularly Important?

A will becomes crucial under several circumstances.

Significant Assets: If you own property, shares, or have substantial cash reserves.

Inheritance: If you've received an inheritance or expect to in the future.

Children: To ensure they are cared for according to your wishes.

Blended Families: To address the complexities of different family dynamics.

What Happens If You Die Without a Will?

Dying intestate, or without a will, means your assets will be distributed according to the intestacy laws of your state or territory. Generally, a spouse or de facto partner will have primary entitlement, followed by children or other lineal descendants. If no direct family members are present, the law will extend to more distant relatives like parents, siblings, and even cousins in some states.

A potential issue is that your assets might not be allocated in the way you intended, which could affect your spouse’s ability to manage debts or business expenses. Additionally, new or temporary partners might claim a share of your estate.

Wills simplify the administration of estates, reducing the likelihood of lengthy court battles, high legal costs, and family disputes. They also allow parents to appoint a testamentary guardian for their children, ensuring their care if both parents pass away.

Superannuation doesn't automatically become part of your estate. Instead, it’s distributed according to superannuation laws. You can make a binding death benefit nomination with your super fund to specify who should receive your superannuation and insurance benefits.

If you don't make a nomination, your super fund will distribute the benefits based on its own criteria, which may not align with your wishes. This can lead to situations like that of Ashleigh Petrie, whose superannuation benefits were claimed by her partner instead of her mother, despite having a nomination.

Options for Creating a Will

You can have your will prepared by a solicitor or public trustee, or even draft it yourself using templates. While DIY wills can save money, it’s crucial to ensure they meet legal requirements. ASIC’s MoneySmart suggests checking DIY wills with your public trustee to avoid issues.

In conclusion, addressing your estate planning needs early can spare your loved ones from added stress and ensure your wishes are honoured. Whether through professional services or DIY methods, creating a will is a responsible step towards securing your legacy and providing for those you care about.