The Benefits of Having a Legal Will: Why You Need One
While it’s not the most cheerful topic to contemplate, having a legal will is one of the most important things you can do to protect your loved ones and ensure your final wishes are carried out. Many people put off creating a will, thinking they’re too young or don’t have enough assets to warrant one. However, the reality is that having a will is crucial for anyone over 18, regardless of their financial situation or family status. Let’s explore the key benefits of having a legal will and why you shouldn’t delay in creating one.
Ensuring Your Wishes Are Carried Out
The primary purpose of a will is to clearly state how you want your assets distributed after your death. Without a will, your estate will be divided according to intestacy laws, which may not align with your personal wishes. This can lead to unintended consequences, such as estranged family members receiving assets you’d prefer to go elsewhere.
A will allows you to:
- Specify exactly who receives what from your estate
- Leave sentimental items to particular individuals
- Make donations to charities or causes you support
- Exclude certain individuals from inheriting (though this can be challenged in some cases)
By clearly outlining your wishes in a legal document, you significantly reduce the chances of family disputes and ensure your legacy is distributed as you intend.
Protecting Your Children
For parents of young children, a will is absolutely essential. It allows you to nominate guardians for your children in the event both parents pass away. Without this nomination, the courts will decide who raises your children, which may not align with your preferences.
Additionally, you can set up trusts within your will to manage any inheritance for your children until they reach an age you deem appropriate. This prevents young adults from receiving large sums of money before they’re mature enough to manage it responsibly.
Minimising Stress for Your Loved Ones
Dealing with the loss of a loved one is already an incredibly stressful and emotional time. Having a clear, legally valid will in place can significantly reduce additional stress and potential conflicts for your family and friends.
A will:
- Provides clear instructions, reducing uncertainty and potential disagreements
- Can speed up the probate process, allowing your estate to be settled more quickly
- Allows you to appoint an executor you trust to manage your affairs
Without a will, the process of settling your estate can be much more complicated, time-consuming, and potentially costly for your loved ones.
Protecting De Facto Partners
Many people assume that their de facto partner will automatically inherit their estate if they die. However, this isn’t always the case. Without a will, de facto partners may need to go through legal processes to claim their share of the estate, which can be stressful and costly.
By clearly stating your wishes in a will, you can ensure your partner is provided for, regardless of your legal marital status.
Tax Planning and Asset Protection
While estate taxes aren’t currently an issue in our country, having a will can still offer financial benefits. A well-structured will can help minimise other taxes and protect assets for future generations.
For example, you can use your will to:
- Set up trusts to protect assets from creditors or relationship property claims
- Structure inheritances in tax-efficient ways for beneficiaries
- Ensure business interests are properly managed and transferred
Avoiding Intestacy
If you die without a valid will, you are said to have died “intestate”. In this case, your estate will be distributed according to the Administration Act 1969. This may result in outcomes you wouldn’t have chosen, such as:
- Your estate being split between your partner and children, potentially forcing the sale of the family home
- Estranged relatives inheriting over close friends or charities you support
- Your partner receiving less than you’d intended, especially if you have children from a previous relationship
By having a will, you maintain control over these important decisions.
Peace of Mind
Perhaps one of the most significant benefits of having a will is the peace of mind it provides. Knowing that you’ve taken care of your loved ones and clearly expressed your wishes can be incredibly comforting. It’s one less thing for you to worry about and one less burden for your family to bear during a difficult time.
How to Create a Will
Creating a will doesn’t have to be complicated or expensive. While it’s always best to consult with a legal professional, especially if you have complex assets or family situations, there are several options available:
- Consult a lawyer: This is the most comprehensive option, ensuring your will is legally sound and tailored to your specific situation.
- Use an online will service: Platforms like Public Trust and LawHawk offer online will creation services that can be a cost-effective option for straightforward situations.
- Use a DIY will kit: While this is the cheapest option, it’s important to ensure the will is properly executed to be legally valid.
Remember, once you’ve created your will, it’s important to review and update it regularly, especially after major life events like marriage, divorce, or the birth of children.
Final Thought
Having a legal will is not just for the wealthy or the elderly – it’s an essential document for anyone who wants to protect their loved ones and ensure their final wishes are respected. The benefits far outweigh the small amount of time and cost involved in creating one. By taking this important step, you’re providing clarity, reducing potential conflicts, and giving yourself and your loved ones peace of mind. Don’t put it off any longer – make creating or updating your will a priority today.