Wills, passwords, tricky conversations: what to do now to make your death easier for your family

Most of us avoid thinking about our own death. Yet, there's a practical reason to consider it: when we pass away, someone else must manage what we leave behind. They may need to arrange a funeral, locate a will, contact banks and super funds, handle property, settle debts, and eventually distribute assets, all while dealing with grief. This process can be overwhelming, especially if the deceased didn't prepare properly. To ease the burden on loved ones, individuals should take steps to ensure their affairs are in order. A key element of this preparation is creating a will. While many people overlook this task, statistics show that only around 40% of Australians have made a will. The likelihood of having one increases with age and the accumulation of assets. Creating a will can be done independently using DIY kits or online tools, but it must comply with the legal standards of the individual’s state or territory. Government guidelines suggest consulting a professional to review the document, particularly in cases involving complex situations such as blended families, businesses, trusts, or intricate asset structures. Without a will, an individual dies intestate, meaning the law dictates how their estate is distributed. These laws vary significantly across Australian states and territories. For instance, in New South Wales, specific legislation outlines the order of inheritance among relatives. In Queensland, if a person leaves a spouse and children, the spouse typically receives household items and the initial $150,000 of the estate, with the remainder shared between the spouse and children. Such distributions may align with personal wishes but are not guaranteed. This is especially pertinent for those with non-traditional family setups or those wishing to leave money to friends, charities, or individuals outside standard legal classifications. A will also appoints an executor, tasked with managing the estate, handling paperwork, making financial decisions, and interacting with government bodies and financial institutions. It is crucial to inform the chosen executor about the will and confirm their willingness to assume the role. Each family is unique, with varying perspectives on inheritance, ownership, and financial obligations. Some families may hold differing views on money and responsibility, while others may have strong expectations regarding care and support for relatives. Cultural and religious traditions can further shape expectations surrounding funerals, caregiving, and asset allocation. What a family anticipates and what the law mandates after someone's death may diverge. Open communication about end-of-life decisions can help bridge this gap, especially if the outcomes might surprise loved ones. Superannuation presents another area often overlooked. Having a will doesn't automatically cover superannuation benefits. Super funds operate under their own rules, determining who receives death benefits, which can include both the account balance and associated insurance. A valid binding death benefit nomination can guide the fund’s trustees on distributing the benefits to eligible beneficiaries. Individuals should review their superannuation beneficiary designations instead of assuming their will covers this aspect. Ensuring all aspects of financial planning are addressed can provide peace of mind and reduce stress for surviving family members during an already difficult time.