Christmas is a time for joy, family and reflection. But amidst the festivities, it’s also an excellent opportunity to consider your estate planning. While it might seem unusual to bring up estate planning during the holidays, Christmas presents a rare chance to start these important conversations.
Why Christmas?
Family Gathering: Christmas often brings families together. This provides a perfect time to discuss your plans for the future with your loved ones. You don’t need to disclose all the details, but simply letting your family know that you’ve considered your future plans, such as who you’ve appointed as executor or where important documents are stored, can provide clarity and prevent future misunderstandings.
Reflect on Changes: The festive season also allows for reflection on any life changes that might impact your estate plan. Births, deaths, marriages, divorces, new assets, or starting a business can all influence your estate plan and may require updating your will, superannuation nominations, or enduring powers of attorney.
Time for Thoughtful Conversations: If you plan to assign new responsibilities, like naming an executor or appointing a guardian, it’s best to discuss this privately with the individual beforehand to ensure they are comfortable with the decision and understand their role.
The Impact of Christmas Gifts
Christmas gifts, especially those of high value, can also impact your Will. If you receive a significant gift like jewellery, furniture, or even a car, it’s prudent to update your Will to ensure these items are passed on according to your wishes. Conversely, if you make a significant gift, you may wish the value of that gift to be taken into account when determining a future beneficiary’s share of your estate.
Unexpected Events
The holiday season is associated with increased travel and social gatherings, which unfortunately can lead to a rise in mortality rates. Read this for some grim statistics! While it’s not something we like to think about, having a Will, Enduring Power of Attorney (EPOA) and a Binding Death Benefit Nomination for superannuation in place provides vital protection for yourself and your loved ones, just in case the unexpected happens. These documents help ensure that:
- Your assets are distributed according to your wishes;
- Your children are cared for by your chosen guardian;
- Your financial and personal affairs are handled by a trusted person if you become incapacitated; and
- Your superannuation benefits are allocated to your designated beneficiaries.
Leaving a Lasting Legacy
Estate planning is not just about legal documents and asset distribution. It’s also about the non-material legacy you leave behind. Christmas provides an opportunity to create lasting memories with loved ones, share stories, and capture special moments. You should also give some thought as to whether the estate plan you have in place, promotes goodwill and harmony or has the potential to undermine relationships between family members when you are gone.
Make it a New Year’s Resolution
If you haven’t reviewed your Will or estate plan in a while, consider making it a New Year’s resolution to ensure everything is up-to-date. Is it too self-promoting to say, Christmas is a time for giving, and the gift of a well-planned estate is a gift of security and peace of mind for your loved ones?
How we can help
ADLV Law will help you put in place a comprehensive and robust estate plan. We will implement your wishes and ensure all the formalities are properly attended to. You can then relax, knowing that the fruits of your lifetime’s hard work will ultimately benefit the loved ones you intend. Call us on 1300 654 590 or email us at wehelp@adlvlaw.com.au.
The information contained in this post is current at the date of editing – 17 December 2024.
