Get a Will from a legal adviser

Q Invest advisers can discuss with you the impact of nominating beneficiaries in your superannuation funds and the importance of having an effective estate plan. You should remember that when you add the effects of personal insurance payouts to your savings the value of your estate is likely to be significant. Taking the time to deal with your estate is well worth it.

Your Will does not deal with your superannuation. Unlike the assets dealt with in a Will, the trustees of the superannuation fund can decide to pay your savings to someone other than your nominated beneficiary. A trustee may make payment to any financial dependant of the deceased. Binding nominations impose a contractual obligation upon the trustees and create certainty around your superannuation benefit.

The process of getting your estate in order should start with a consultation with a financial adviser. Your financial adviser helps you to understand what happens to your assets and the taxation implications when you pass away. They evaluate the adequacy of your estate to satisfy your intention upon passing, and can use insurance policies to increase the size of the gift. The adviser can also recommend legal advisers and assist you to prepare for your meeting with them.

How do you prepare for your meeting with a legal adviser?

• Write down what you would like to gift and to whom. Gifting in equal shares is not easy when taxation can play a role in the real value and timing of the gift.
• Provide a simple explanation of the important people in your life, including those in past relationships whether or not they will be beneficiaries. You will be asked for their full names, dates of birth, their relationship to you and where they live.
• Bring a list of your assets and liabilities, including items of sentimental value that will be specifically mentioned in your Will - like jewellery.
• Consider whether you would like to nominate an executor and speak to those people in advance. The ideal executor has a sense of fairness, is prudent enough to take advice and assertive when it counts. The willingness to be directed on financial matters relating to your deceased estate is very important. Poorly informed decisions can cost the estate a lot in terms of money and stress.

A Will is a binding legal document and may not be suitable for all personal requests that may change from year to year. When it comes to gifting your personal valuables there may be items that you specifically want to give to certain beneficiaries. This can be done in a “wish list”. Whilst not legally enforceable it gives a clear guide to the executor and is commonly used to divide up the personal items of the estate, that otherwise can cause angst between family members.

Finally, a funeral is often the first expense of the deceased estate. You can arrange payment of your funeral during your life and in some cases you may receive a financial benefit in doing so. This is another way that a financial adviser can assist you to achieve the things most important to you.