Why You Should Create A Will To Protect Your Assets
A will is a legal document that comes into play when someone passes away. It sets out the wishes of the deceased based on their instructions, from issues as diverse as asset distribution to childcare.
Among other things, a will details who will receive your assets and personal items, how your funeral will be arranged, who will care for your children, and who will be your executor when you pass away. In Australia, creating a legally binding will is an essential part of estate planning.
If you own a home or other valuable assets, a will is important to ensure fair distribution for all parties.
How to create a legally binding Will
To be effective and legally binding, a will needs to meet certain requirements.
It needs to be a written document, it needs to be signed by you, and it needs to have been witnessed by two other people. You need to be 18 years or older to make a will, and you must have the mental capacity to understand what you're doing.
In Australia, each state and territory has different laws and regulations surrounding the creation and implementation of wills. To ensure validity, you should check the requirements in your jurisdiction.
For more information, read How Do I Make A Will?
The benefits of creating a will
The benefits of a will stretch far and wide — for you and your beneficiaries, both now and upon death. The following benefits are among the most noteworthy:
1. Intentional distribution
Without a will, your assets are distributed based on a specific formula; from partners to children, parents, siblings, grandparents, aunts and uncles, and cousins. If you were involved in a charity, it may also lay claim to your home.
For a more personal outcome, you need to leave proper instruction via a will. Among other things, including your home in your will is essential to ensure fair and intentional distribution.
2. Proper execution
Along with asset management, your will identifies a person to execute your instructions. Without a will, a court-appointed administrator may be used to sell your home and carry out your personal wishes.
When you create a legally binding will, you can make sure the person selling your home, distributing your assets, and organising your funeral is someone you trust.
3. Avoid stress later in life
Creating a will is a simple and effective way to get your affairs in order. Many people face illness as they age, and estate planning can be more difficult during this time.
Creating a will is the best way to ensure a good outcome for yourself and your loved ones. Instead of worrying about "what happens to my home when I pass", you can create a clear plan right now.
4. Avoid family disputes and costs
When people pass away, emotions are high and disputes are common. Clearly outlining your wishes via a will is the best way to instil confidence among your loved ones.
Not having a will can also be expensive for your family, with property sales and asset distribution likely to create delays and extra costs for everyone involved.
5. Manage your assets effectively
Creating a will is very useful in the context of property and asset management. The process of writing a will creates a clear picture of your assets and liabilities.
From your home and physical belongings to your long-term investments and debts, a will creates clarity and allows you to strategise for the future. For example, you can move certain assets and debts to ensure the best outcome for your beneficiaries.
Creating a will is the only way to ensure that your home and assets are distributed fairly according to your wishes. For a legally binding will that protects your assets and looks after the people you love, it's important to work with an experienced law firm.
Among other things, a will details who will receive your assets and personal items, how your funeral will be arranged, who will care for your children, and who will be your executor when you pass away. In Australia, creating a legally binding will is an essential part of estate planning.
If you own a home or other valuable assets, a will is important to ensure fair distribution for all parties.
How to create a legally binding Will
To be effective and legally binding, a will needs to meet certain requirements.
It needs to be a written document, it needs to be signed by you, and it needs to have been witnessed by two other people. You need to be 18 years or older to make a will, and you must have the mental capacity to understand what you're doing.
In Australia, each state and territory has different laws and regulations surrounding the creation and implementation of wills. To ensure validity, you should check the requirements in your jurisdiction.
For more information, read How Do I Make A Will?
The benefits of creating a will
The benefits of a will stretch far and wide — for you and your beneficiaries, both now and upon death. The following benefits are among the most noteworthy:
1. Intentional distribution
Without a will, your assets are distributed based on a specific formula; from partners to children, parents, siblings, grandparents, aunts and uncles, and cousins. If you were involved in a charity, it may also lay claim to your home.
For a more personal outcome, you need to leave proper instruction via a will. Among other things, including your home in your will is essential to ensure fair and intentional distribution.
2. Proper execution
Along with asset management, your will identifies a person to execute your instructions. Without a will, a court-appointed administrator may be used to sell your home and carry out your personal wishes.
When you create a legally binding will, you can make sure the person selling your home, distributing your assets, and organising your funeral is someone you trust.
3. Avoid stress later in life
Creating a will is a simple and effective way to get your affairs in order. Many people face illness as they age, and estate planning can be more difficult during this time.
Creating a will is the best way to ensure a good outcome for yourself and your loved ones. Instead of worrying about "what happens to my home when I pass", you can create a clear plan right now.
4. Avoid family disputes and costs
When people pass away, emotions are high and disputes are common. Clearly outlining your wishes via a will is the best way to instil confidence among your loved ones.
Not having a will can also be expensive for your family, with property sales and asset distribution likely to create delays and extra costs for everyone involved.
5. Manage your assets effectively
Creating a will is very useful in the context of property and asset management. The process of writing a will creates a clear picture of your assets and liabilities.
From your home and physical belongings to your long-term investments and debts, a will creates clarity and allows you to strategise for the future. For example, you can move certain assets and debts to ensure the best outcome for your beneficiaries.
Creating a will is the only way to ensure that your home and assets are distributed fairly according to your wishes. For a legally binding will that protects your assets and looks after the people you love, it's important to work with an experienced law firm.
