Why end-of-life planning is important
Research has shown that Australians are reluctant to get their affairs in order by putting together an end-of-life plan.
While it’s understandable that most people prefer not to contemplate their mortality, failure to plan can result in family disputes, assets going into the wrong hands, possible court battles and unnecessary legal costs. A more important consequence is that without an end-of-life plan, the process of appointing guardians for young children is out of your hands.
End-of-life planning requires you to consider a variety of scenarios. Writing a Will is an important first step but it doesn’t end there. Here are 10 things you might not know about end of life planning.
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End-of-life planning goes beyond a Will
It’s clear that dying without a Will can complicate things for your family by leaving it up to the courts to decide on how your inheritance is dealt with. But there’s so much more to planning for the final stage of your life than just writing a Will.
Estate planning, tax minimisation, business continuity planning, managing your digital assets and caring for pets can be added to the list of life matters that, when left to chance, can have inconvenient or even catastrophic consequences for your loved ones.
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Appointing guardians for your children is a crucial end-of-life planning task
Many people overlook the fact that not creating a Will and estate plan can leave them without a direct say in their children’s futures.
End-of-life planning is a way to secure the future of your young children by nominating a guardian in your Will to look after them if you pass away before they become adults.
Failure to do this opens up the possibility that a court-appointed guardian rather than your guardian of choice will take over your children’s care.
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Trusts and Testamentary Trusts can help secure your legacy
While you may be able to carry out many of your wishes using a Will alone,
Trusts allow you to have more control over exactly what happens to your assets and how they’re distributed. For a more comprehensive estate and end-of-life plan, they’re well worth considering.
Trusts can be useful in a variety of situations, including limiting childrens’ access to their total inheritance until they’re older, providing for the care of dependents with special needs, protecting assets in a divorce or legally minimising tax liabilities. They can be created to operate while you’re alive (through a Discretionary Family Trust) or to take effect after you die (through a Testamentary Trust).
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Certain assets may bypass your Will
Wills and inheritance laws do not apply for every type of asset and investment that you leave behind after you die.
Superannuation funds and other trustees that hold investments on your behalf, for example, may ask that you name beneficiaries via a specific set of instructions known as a Binding Death Nomination.
Proper end-of-life planning requires you to stay on top of the rules for funds and investments such as these which bypass your Will.
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A “Living Will” gives you a say in your future care
Making a “Living Will” or an “Advance Care Directive” allows you to formally appoint a substitute decision-maker in situations where you can no longer make choices for yourself during illness or incapacity. By outlining your care preferences you can ensure that decisions will be in line with your beliefs, values and goals.
Living Wills and Advance Care Directives differ depending on where you live in Australia, with some states and territories having specific forms you can use to record your instructions.
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An end-of-life plan can include your pets
While pets have traditionally been left out of estate plans, modern Wills are increasingly acknowledging the part they play in our lives.
If you’re an animal lover and consider your pets to be cherished members of your family, it’s natural you’ll want to acknowledge them in your Will by naming a pet caretaker and leaving specific assets to that person to spend on their ongoing care.
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You need to consider your “digital assets”
In the 21st century, our physical property and financial assets are just one component of what we own.
Almost every one of us also has significant amounts of digital assets, including stored information in online accounts such as Facebook, Instagram, and LinkedIn, and information stored on our devices and in the cloud.
The law regarding digital assets is constantly evolving, and online providers have different policies on how data can be accessed by third parties.
A key part of end-of-life planning should be to take an inventory of all of your digital accounts, discuss it with your family and store it in a secure but accessible location (as well as including it in your Will).
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You can have a say in your funeral arrangements
Having a say in what form your “final send-off” should take has become an increasingly important part of end-of-life planning.
More and more people are breaking away from traditional funerals and choosing services or rituals which are more in line with their personalities and values. Perhaps you’d prefer a non-church service, a wake, or a nature-based memorial? End-of-life planning is a way of making this known to your loved ones.
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End-of-life planning allows you to shape your legacy
Do you have one or more causes that are close to your heart? End-of-life planning reflects your values and means you can donate to charities, to deserving people and groups in a way that matters most to you.
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You don’t need a lawyer for an end-of-life plan
While it’s always advisable to seek professional advice when your circumstances require it, modern developments in Wills and estate planning mean that you make huge strides independently with the help of low-cost and user-friendly service providers.
You no longer have to grapple with legalistic documents or devote a huge amount of time or money to putting together a well-thought-out end-of-life plan.
When it comes to your Will, it’s certainly not a requirement to consult a traditional lawyer to get up and running. Anyone with a computer or smartphone can have a Will in minimal time and at a fraction of the cost of a traditional Will.
Start writing your online Will with Safewill now
With Safewill, you are guided by tips from legal advisers to enter your estate planning instructions into a specially designed digital platform and create a downloadable, printable document to sign and have witnessed.
Your Will is done and dusted in less time than you’d take to have a haircut.
Even though it’s natural to put off making your estate plan, there is definite value in knowing you’ve safeguarded your legacy and your family’s security to the best of your abilities.
