8 Common Misconceptions About Wills

8 Common Misconceptions About Wills

Having taken instructions for hundreds of Wills, we have noticed some common themes in the way some people think about Wills and Estate Planning. In this article we discuss 8 common misconceptions we regularly encounter when assisting people get their affairs in order.

Myth #1: My family know what I want. They’ll just take care of things – including who will look after my children.

The Truth: Without a Will, your family will lack the power to make many important decisions. They will be bound by what the Law dictates about things such as who will administer your affairs, who will get your assets, when they will get those assets, and who will have legal authority to look after your children. By updating your estate planning documents, you can take control of these important outcomes.

Myth #2: My family is really close. They’ll never argue over my money.

The Truth: Unfortunately this is wistful thinking.  Of all the hard fought and emotionally driven litigation matters we have seen, the worst have been disputes over Deceased Estates. Grief and money seem to be a pretty bad combination, bringing out all sorts of strong emotions. The clearer you are about how you want your affairs handled, the lower the chance of relationship-destroying disputes.

Myth #3: A ‘home made’ Will Kit or DIY Will is good enough.

The Truth: In many cases ‘home made’ Will Kits and online DIY Wills create more problems than they solve – due to the fact that they necessarily must be drafted in a very broad manner.  This is good for lawyers who make money out of Estate disputes, but it is not good for your beneficiaries.

Myth #4: My Will is really simple – I just want to leave everything to my spouse.

The Truth: Maybe… maybe not. What if your spouse subsequently remar­ries, or has children or step-children with a new partner? What if your spouse gets into financial trouble and loses the lot? What if this is already your second marriage? There are excellent options available to protect the legacy you leave behind for your children, while not disadvantaging your spouse.

Myth #5: There’s no point making a Will, because it can be challenged anyway.

The Truth: There are a number of things that can be done by an Estate Planning expert to make your Will more resistant to chal­lenge.  Furthermore, very few Wills are actually challenged – in which case the wishes of the Will-maker are simply carried out in full.

Myth #6: All my assets will be passed down through my Will.

The Truth: Not necessarily. Most people think that they “own” assets in a Family Trust, family owned company, or self managed superannuation fund. But assets within these structures do not form part of your Estate.  Often additional measures need to be taken to ensure that these assets end up where intended.

Myth #7: This is my second marriage, so I should pay all my superannua­tion to my adult kids.

The Truth: Superannuation is subject to special tax rules. If superannuation is paid to a ‘non-dependent’ beneficiary, a lump sum tax becomes payable. This could cost your Estate hundred of thousands of dollars in unnecessary tax.  We can assist you implement your Estate Planning objectives, taking tax considerations into account. And don’t forget that special care needs to be taken to consider how superannuation is treated, as superannuation is not part of your estate!

Myth #8: It will all be easy to sort out after I’ve gone.

The Truth: Few deceased Estates are easy to sort out if proper planning has not taken place. Even if there is a legally valid Will, and the Will is not challenged, deceased Estates can be a headache for the Executor and for the beneficiaries involved. Just imagine how much that problem is amplified if no Will can be found, or if no one knows where the most current Will is located.

Next steps..

The time is ripe for addressing these issues, and ensuring you have a sound Estate Plan in place.

Call us on 1300 654 590 or email us to start the process of putting your family’s Estate Plan into action.

Click here to find out more about how we can help you with your Estate Planning needs.

WARNING & REPUBLISHING

This publication contains general information only, and is not to be construed as legal advice. Laws differs in each jurisdiction in Australia, and may be interpreted or applied differently depending on your location. This publication is not to be used as a substitute for legal advice tailored to your individual situation. Use of this publication does not create or constitute a solicitor-client relationship between ADLV Law and any user of this publication.

If you would like to use any of our articles for marketing to your own clients, please contact marketing@adlvlaw.com.au

 

The information contained in this post is current at the date of editing – 20 November 2023.

Our Great Lawyer Guarantee

We want to be part of your team over the long term. We'll achieve this by sticking closely to the following principles:

  • We'll listen carefully to understand what you want to achieve. Then we'll thoroughly explain our advice and step you through the documents. You can be sure you'll know the full consequences.
  • Our lawyers work as a team, so someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.
  • One of our key goals is to pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.
  • We only do what we're good at. You can be confident that we know what we're doing and won't pass on the cost of our learning.
  • For advice and documents, we provide a fixed or capped quote so you don’t take price risk. If you're in a dispute, we'll map out the process and costs so you know what to expect.
  • We're not in this game for our egos. We're in it for a front row seat to witness your success.

We measure our success on how efficiently we have facilitated your objectives, enhanced your relationships, and reduced the level of stress for all involved.

If we sound like people you can work with, call us now on 1300 654 590 and speak directly with a great lawyer.