A Will is a legally binding document that outlines what your wishes are when you are no longer here. It ensures that your personal and business-related assets go to the people you want to receive it. And it can provide ongoing maintenance and education to your partner, children, and other relatives.
McDonnel Schroder has over 50 years of experience helping individuals with their will writing and estate planning needs. For expert advice on wills, contact us today.
To help you understand wills and the importance of having one, here are a few good reasons to have one.
You Get to Decide who Gets what from your Estate
When a person dies without a Will (or the Will is invalid) there is no guarantee the intended beneficiaries will actually get a fair share of the deceased’s estate.
Formally known as intestacy it means the law has to determine how the deceased’s estate will be distributed to their partner, children, and other relatives.
Generally speaking, this arrangement is not ideal as the deceased has no control over who gets their assets and the assets could fall into the hands of someone the deceased did not choose.
This arrangement can also increase the risk of family in-fighting and potential legal disputes later on.
To ensure that your assets go to the right people it’s always recommended you have a valid Will.
Give your Family lasting Financial Security and peace of mind
Do you have children under 18 years of age, a partner, or another relative dependent on you for financial support? If so, then a carefully arranged Will can guarantee their ongoing maintenance once you are gone.
Furthermore, a Will can also establish who your children’s guardians will be if you (or your spouse) prematurely pass away. This way, your children will have a far better chance of a brighter future.
Reduce the Amount of Tax your Beneficiaries Pay
While Australia has no inheritance tax, there are other taxes which may impact how much money your beneficiaries receive.
For example, depending on whether you distribute your super to tax dependent beneficiaries as a lump sum, income stream, or a mixture of both, this can influence the amount of payable tax – if any at all.
A beneficiary may also need to pay Capital Gains Tax (CGT) if they decide to sell assets inherited by a deceased estate.
By having your Will drafted by a qualified solicitor, they can assess your current financial situation and help reduce the amount of tax your beneficiaries pay.
Update the Will as your Circumstances Change
The great thing about drafting a will is having the ability to change it when your circumstances change. Whether you want to add new beneficiaries, disinherit current beneficiaries, or make any other changes – you have the freedom to do so.
By regularly updating your will, your assets will be distributed in line with your exact wishes at the time of your passing – not based on outdated circumstances.