As the festive season fast approaches, it is easy to get caught up in celebrations and preparations, leaving little time to focus on essential matters like estate planning.

The holiday season is the perfect time to ensure your estate planning affairs are in order, safeguarding your wishes in the case of death or incapacity.

By addressing your estate planning now, you can enjoy your break with peace of mind, knowing your loved ones will be protected if the unexpected occurs.

Common excuses for delaying estate planning

Many people postpone estate planning due to common misconceptions, such as:

• “I’m young and don’t own much”

This is one of the most pervasive myths about estate planning. Estate planning is not just for older individuals. Young people (over 18) should also have a Will.

Often, younger people underestimate their assets, especially when superannuation, life insurance, or future investments like a home are considered. Estate planning is essential for young adults, particularly those who are married, in de facto relationships, new parents or in blended families.

• “Why should I pay a solicitor to prepare my documents?”

While it may be tempting to save costs by drafting documents yourself, poorly prepared Wills or Enduring Powers of Attorney can lead to significant legal complications.

It is always best to engage a solicitor to prepare your Will and Enduring Power of Attorney on your behalf. If a Will or Enduring Power of Attorney is poorly drafted because it is home-made or not executed properly, there is likely to be additional legal costs.

Engaging an experienced estate planning solicitor ensures your documents are legally valid and tailored to your needs, minimising stress and costs for your loved ones in the future.

Key estate planning documents

Estate planning is personal and should reflect your unique circumstances. At a minimum, take steps to ensure the following documents are in order before the new year:

1. Your Will

Whether you are travelling or not, having an updated Will is fundamental to estate planning. Unforeseen events can occur at any time, and the holiday season is no exception.

Your Will is the cornerstone of your estate plan. It outlines critical decisions, such as appointing an executor, nominating guardians for minor children, and distributing your assets.

Updating your Will before traveling or entering a busy holiday period, ensures unforeseen events will not leave these vital decisions to chance and in control of people you mistrust.

2. Enduring Power of Attorney (EPA)

An EPA is a vital document that appoints someone you trust to make financial and personal (including health) decisions on your behalf if you lose decision-making capacity.

There is a common misconception that our loved ones can automatically step in and make these decisions. However, if the unexpected happens, without this document it can be extremely difficult and stressful for all involved.

In Queensland, an EPA ensures your affairs can be managed by someone you know and trust, without lengthy court proceedings. Without it, your loved ones may face unnecessary stress and delays, during already challenging times.

3. Superannuation binding death benefit nominations

Superannuation is often overlooked in estate planning. Superannuation death benefits do not automatically fall under your Will; instead, they are controlled by the superannuation fund trustee.

A binding death benefit nomination directs your superannuation to the intended beneficiaries. Without it, your superannuation could be distributed at the trustee’s discretion, potentially to unintended recipients.

4. Trusts

Trusts offer an additional layer of protection and control over your assets.

Testamentary trusts

Testamentary trusts can shield a beneficiary’s inheritance from risks like bankruptcy, divorce, or excessive taxation.

This type of Will allows the will-maker to exercise control over the future use and application of their assets, unlike a standard Will. where the assets pass directly to the beneficiaries personally

Protective Trusts

Designed for beneficiaries with disabilities or limited capacity, these trusts secure financial care and support long-term.

Under a protective trust, the money or assets (inheritance) bequeathed in the will to the vulnerable loved one (beneficiary) are held by another person or organisation (the trustee) to look after on behalf of the beneficiary. The trustee then manages the inheritance in the way they think most appropriate, reducing the risk of the beneficiary wasting the inheritance.

Review your existing trust deeds

Like superannuation, trust assets are non-estate assets, and not automatically controlled by your Will.

If you have existing trusts, your solicitor should review the trust deeds and align them with your estate plan to ensure the right people gain control of the trust assets.

Take action today

By sorting your affairs now, you can enter Christmas and New Year with confidence, knowing that your wishes are protected, and your loved ones are safeguarded. Start the process today and give yourself the gift of peace of mind for the new year ahead.

If you need assistance reviewing or creating your estate planning documents for the first time, please contact us today for advice.