Is your will legal and does it reflect your wishes?

Peace of mind is a cornerstone of a secure retirement. While many Australians prioritise financial security, ensuring your wishes are carried out after you’re gone is equally important.  This is where having a valid will comes in. Our recent July 2024 Retirement Pulse – Wills and your estate survey revealed some interesting insights on this topic.

Over 88% of respondents believe it’s crucial to have a valid will. This aligns with the reality that a will allows you to dictate how your assets – from property and investments to personal belongings – are distributed after your passing. This not only honors your wishes but also helps minimise stress and potential conflict amongst loved ones during a difficult time.

Is your current will legal and up-to-date?

While the sentiment leans towards the importance of wills, the reality paints a slightly different picture. Only 82.46% of respondents confirmed having a valid will. This highlights a potential gap between intention and action. Even more concerning is the fact that nearly half (46.42%) of those with wills haven’t updated them in at least five years.

Life throws curveballs, and our survey results underscore this. Since their last update to their will, over a third (38.24%) of respondents have experienced significant financial changes, while over a quarter (29.41%) have had major life events impacting their relationships. These changes – including marriage, divorce, births, deaths of beneficiaries, and the arrival of new loved ones – can significantly alter your wishes for your estate. This is highly likely to be the case if you haven’t updated your will in more than five years as was the case for nearly half of the people in the survey.  

Why people avoid wills

We also explored the reasons why some people don’t have wills. Here are the top concerns of those who do not have a will:

• Uncertainty about the process: (19.5%) Many people simply don’t know where to begin.
• Cost concerns: (24.4%) The perceived expense of a will deters some.
• Misconceptions about asset value: (7.3%) Some believe their assets aren’t substantial enough to warrant a will.

These are all common myths. You can check out other wills and other estate planning myths here. Fortunately, there are numerous resources available to guide you through the process of creating a will. The cost is typically quite reasonable compared to the potential problems that can arise if you die without a will. In such cases, the law dictates how your assets are distributed, which may not align with your wishes and could lead to unnecessary family conflict.

How often should you review your will?

The NSW Trustee and Guardian recommends reviewing your will every 3-5 years and updating it whenever there’s a significant life change. Here are some key events that might trigger an update:

Relationship changes: Marriage, divorce, or the addition of new significant people in your life.
Family changes: The birth or adoption of children, or the passing of a beneficiary.
Financial fluctuations: Significant increases or decreases in your wealth.
Charitable intentions: If you wish to include charitable donations in your will.

Having a valid will is an essential element of a secure retirement plan. It ensures your wishes are met and minimises potential burdens on your loved ones. If your existing will is outdated, consider reviewing your current will.

Estate planning considerations

Beyond the core elements of a will, there are some additional factors to consider for a comprehensive estate plan:

Power of Attorney: This legal document appoints someone you trust to make financial and legal decisions on your behalf if you become incapacitated.
Enduring Guardian: Similar to a power of attorney, this document designates someone to make healthcare decisions for you if you’re unable to do so yourself.
Superannuation and Life Insurance Nominations: Review beneficiary nominations for your superannuation and life insurance policies to ensure they align with your will’s provisions.

By taking a proactive approach to estate planning, you can ensure your wishes are respected and your loved ones are taken care of after you’re gone. This allows you to embrace your retirement with the satisfaction of knowing your legacy is secure.

Retirement Essentials encourages you to check that you have a current and valid will in place. When you have a valid will, you give yourself the best chance of making sure your assets go where you want them to. To assist its members that don’t have a valid will, we have established an arrangement with Willed to provide wills and related services to our members. Create your legally valid will in 3 easy steps.