A will is one of the most important legal documents you can create. It provides you with the power to determine how your assets and belongings will be distributed after your passing and allows you to provide for your loved ones according to your wishes. Despite its importance, many people in New South Wales (NSW) either don’t have a will, have one that is outdated or one that is not valid.
1. Why is a Will So Important?
A will is essential for several reasons:
Control Over Asset Distribution
A will allows you to decide exactly how your estate will be distributed. This includes your home, savings, investments, superannuation (where applicable), and personal items. Without a will, the distribution of your assets is determined by NSW’s intestacy laws, which may not reflect your intentions or the needs of your loved ones.
Appointing an Executor
In your will, you can appoint a trusted person as your executor, who will be responsible for managing your estate and ensuring that your wishes are carried out. The executor has a crucial role, including managing assets, paying debts, and distributing the estate. Without a will, the court may appoint an administrator, which could be someone you may not have chosen.
Providing for Minor Children
If you have children under 18, a will allows you to nominate a guardian who will take care of them if you and your partner are no longer around. This is one of the most important reasons for having a will, as it ensures that your children are looked after by someone you trust.
Minimising Family Disputes
Clearly setting out your intentions in a will can help reduce the likelihood of disputes among family members. Without a clear directive, disagreements over asset distribution can arise, leading to lengthy and expensive legal battles that can diminish the value of your estate.
2. What Happens if You Don’t Have a Will?
If you pass away without a valid will, your estate is considered “intestate,” and NSW’s intestacy laws dictate how your assets are distributed. These laws follow a set formula that prioritises certain family members, such as your spouse and children, but may not align with your personal wishes. For example:
Spouse and Children
If you have a spouse and children, your estate may be divided between them according to specific formulas, which may not reflect how you would have chosen to distribute your assets.
No Immediate Family
If you don’t have a spouse, children, or other close relatives, your estate may go to distant relatives or, in some cases, to the state. This means that your assets could end up in the hands of people you had no relationship with or, worse, the government.
No Provision for Friends, Charities, or Specific Gifts
Without a will, you cannot leave specific gifts to friends, charities, or other organisations you may want to support. Intestacy laws do not account for these intentions, meaning your estate will be distributed strictly within the family hierarchy defined by law.
3. Updating Your Will: Why It Matters
Having a will is important but keeping it up to date is equally crucial. Life changes such as marriage, the birth of a child, divorce, or the acquisition of significant assets can all impact your will’s effectiveness. In NSW, certain events, such as marriage, may revoke a will unless it was made in contemplation of that marriage.
Regularly reviewing and updating your will ensures that it reflects your current circumstances and wishes. It’s advisable to review your will at least every few years or when a major life event occurs. This proactive approach minimises the risk of your will becoming outdated and failing to cover new or changed circumstances.
4. The Role of a Lawyer in Drafting Your Will
Engaging a lawyer to draft your will is essential to ensure its validity and effectiveness. While DIY will kits are available, they may not account for complex situations, such as blended families, business interests, or overseas assets. A poorly drafted will can lead to confusion, disputes, and the need for costly legal intervention to clarify your intentions.
Our experienced estate planning lawyers provide tailored advice, ensuring that your will is valid, reflects your wishes and maximises the benefit of your estate for your beneficiaries.
In addition, our lawyers can advise on other critical documents that complement a will, such as a Power of Attorney or an Enduring Guardianship, to protect your interests during your lifetime.
If you are ready to create or update your will, contact our experienced estate planning team today. We are here to guide you through the process and provide the support you need to secure your future and the future of your loved ones.
Stay Updated
Keep up to date with the latest news and events from us!
