Smart Money Newsletter

Sept 2002  - "Where there's a will there's a relative"

Making a will and doing it correctly is an important legacy. This article will help you in the process and advise you on the areas that are crucial to get right.

Making a Will

If you care about the people you are leaving behind and what happens to the assets you have built up over your lifetime, it is essential that you leave a will setting out how you want those assets to be distributed. Nowadays, our more complex family structures – the high divorce rate and increasing numbers of blended families, de facto and same sex relationships – increase the likelihood of a person’s will being challenged.

Before you make your will...

Your will should be based on your life now, not how you expect it to be when you are ninety.

Step 1: Firstly, make a list of all of your assets, including those shared. Your list might look like this:

Step 2: Once your list is complete, determine which assets are yours to leave.

For example, if your home is in joint names, your half will automatically go to your partner when you die. (This means, if he/she remarries, your share of the home could pass to the new spouse and then to the new spouse’s children, while your children miss out on their entitlement.) If you are tenants in common, on the other hand, you can leave your half of the property to whomever you wish. If you leave your half to your adult children, however, it is possible that they could pressure your partner to sell the home to obtain their entitlement

Step 3: Decide who is to receive your assets; in most cases, beneficiaries are the people who are important to the will maker. When this decision is made, your amended list might look like this:

* Your superannuation fund has the final say regarding beneficiaries. If your children are under the age of 18, monies may need to be held in trust – seek legal advice, or contact your superannuation fund.

Drawing up your will… >>

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