The most important New Year’s resolution you’ll make this year – write a Will
Death is an inevitable part of life, and yet, more than half of Australia’s population don’t have a valid Will. Dying without a valid Will, known as dying ‘intestate’ can have significant consequences, both for the deceased and their loved ones. This holiday season, consider taking some time out to prepare your Will and remove any future legal and financial burden from others.
In this article, we explore the legal and financial implications of not having a valid Will in Australia.
What is a Will?
A Will is a legal document which sets out what you want to happen to your assets when you die. An asset can be anything you own that adds financial value, such as your home, car, possessions including jewellery or art, and money in your bank accounts. Any liabilities or debts you owe, such as a remaining mortgage or balances on credit cards and loans will be subtracted from your assets.
In your Will, you may include matters such as how you want your assets shared, who will look after your children if they’re still young, how much money you’d like to give to a particular charity, and plans for your funeral.
Intestacy Laws in Australia
When an individual passes away without a valid Will, known as ‘intestate’, the distribution of their assets and possessions is determined by the intestacy laws in the relevant Australian State or Territory.
The Consequences of dying intestate
- Lack of Control: One of the most significant consequences of dying without a Will is the loss of control over how your estate is distributed. Instead of your wishes, the State or Territory laws will dictate who receives your assets. This can be particularly concerning if you have specific intentions, such as ensuring that particular family members are provided for or leaving certain assets to charities.
- Potential Family Disputes: When the distribution of assets is not aligned with the deceased’s wishes, it can lead to disputes among family members. These conflicts can be emotionally draining and can even lead to legal disputes between family members, which may further deplete the estate’s value.
- Delayed Distribution: Dying without a Will can lead to delays in the distribution of assets to beneficiaries. This can be frustrating, as loved ones may be in need of financial support following the deceased’s passing.
- Extra Costs: The legal and administrative costs associated with intestacy can be higher than those involved in executing a valid Will. The estate may be required to cover expenses such as court fees and additional legal consultations.
- Tax Implications: Intestacy can have tax implications, potentially resulting in more significant tax expenses for the estate. Considered estate planning can help minimise such consequences.
Given the potential complications and adverse consequences of dying without a valid Will, we recommend that you set aside time this holiday period to prepare your Will.
Conclusion
Dying without a valid will in Australia can have far-reaching consequences that affect not only the deceased but also their loved ones. By taking proactive steps to create a valid will and plan their estate, you can ensure your assets are distributed as desired, minimise the potential for family disputes, and provide financial security to your loved ones during a challenging time.
By holding a valid Will, you can leave behind a legacy that reflects your values and priorities, rather than leaving your affairs to be determined by the state’s intestacy laws.
