5 Financial Lessons We Wish We’d Learned at School
Did you know that around 60% of Australian adults surveyed — approximately 12.5 million people — do not have a Will (https://www.finder.com.au/news/australians-have-no-estate-plans)? Yet a further 63% of Australians surveyed said they plan to leave an inheritance (https://www.finder.com.au/news/passing-the-buck-2026).
These are confronting statistics. There is a huge gap between intending to leave an inheritance and actually having a plan in place to make it happen.
And seeing clients die intestate — without a valid Will — can be a messy affair. It can create uncertainty, stress and unnecessary complications for the people left behind.
Don’t leave this mess for your loved ones.
One of the main reasons people delay estate planning is simply that they don’t want to think about death. Others believe they don’t have enough assets to warrant a plan, while some simply haven’t got around to it.
So, let’s unpack this topic a little further.
Why Do We Avoid Talking About Death?
We insure our homes and cars, save for retirement and plan holidays months or even years in advance.
Yet when it comes to planning for what happens when we’re no longer here, many of us would rather not think about it.
Death anxiety is the discomfort, fear or avoidance people can experience when confronted with their own mortality. Avoiding the conversation can feel easier in the short term, but it can create uncertainty for the people we leave behind.
The reality is that none of us know exactly what the future holds.
Estate planning isn’t about being morbid or expecting the worst. It’s about making your wishes clear and making things easier for the people you love.
What Happens If You Die Without a Will in Australia?
Dying without a valid Will is generally referred to as dying intestate.
When this happens, the distribution of your estate is governed by the intestacy laws of the relevant Australian state or territory. This means your estate may not be distributed in the way you would have chosen.
And while you might think:
“My family knows what I want.”
That’s not necessarily the same as having a legally effective estate plan.
Your family may know what you have said over the years, but conversations aren’t a substitute for appropriate legal documents.
Estate planning is about turning your intentions into a clear and legally appropriate plan.
A Will Is Only One Part of Estate Planning
A Will is important, but it is only one piece of the estate planning puzzle.
A comprehensive estate plan can involve a number of legal documents and considerations. Depending on your circumstances, an estate planning lawyer can help ensure your legal documents are appropriately prepared and reflect your wishes.
Some of the key considerations include:
Will
A Will is a legal document that sets out how you would like your assets to be distributed after your death.
Executor
Your executor is the person responsible for administering your estate.
At The Wealth Lab, we think it is worth considering whether a professional executor is appropriate for your circumstances. Being an executor is a significant responsibility and, depending on the complexity of an estate and the person’s financial literacy and experience, it can become overwhelming.
Mistakes can also be costly.
Beneficiary Nominations
Beneficiary nominations are particularly relevant to superannuation and insurance.
Superannuation and insurance held within super do not automatically form part of your estate. Depending on your circumstances, these benefits may be directed to your estate or to an eligible beneficiary through an appropriate nomination.
What is best for you will depend on your individual circumstances, which is why this is an important conversation to have with an estate planning lawyer and your financial adviser where appropriate.
Guardianship
If you have dependent children, guardianship is an important consideration.
Your estate plan should consider who you would want to care for your children if something happened to you and your wishes should be documented appropriately.
Powers of Attorney
An enduring power of attorney is another important piece of the estate planning puzzle.
Estate planning isn’t only about what happens when you die. It’s also about what happens if you are alive but become unable to make decisions for yourself.
Depending on the relevant state or territory laws and the type of authority involved, an appropriately appointed person may be able to act on your behalf if you lose capacity.
Funeral and Personal Wishes
A Letter of Wishes is an informal, non-binding document that can accompany your Will.
It can provide context around your wishes and, where appropriate, explain why you have distributed your assets in a particular way.
It can also include funeral or personal wishes, potentially making things a little easier for the people who have to organise them at an already difficult time.
Digital Assets and Accounts
Don’t forget about your digital life.
Think about important online accounts, digital assets, subscriptions and other information that someone may need to know about.
You should consider how this information can be securely documented and accessed when necessary rather than simply providing passwords in an unsecured document.
Business Interests and Trusts
If you have a business, company, trust or other complex financial arrangements, these may also need to be considered as part of your broader estate and succession planning.
This is where getting appropriate professional advice becomes particularly important.
Your 5-Minute Estate Planning Checklist
Take five minutes and ask yourself:
- Do I have a valid Will?
- Where is the original document?
- Who is my executor?
- Are my beneficiaries and superannuation nominations up to date?
- Have my circumstances changed since I made my Will?
- If I have children, have I considered guardianship?
- Does someone I trust know where to find my important documents?
- Have I considered what happens if I become incapacitated rather than deceased?
- Do I have assets, accounts or digital property that someone might not know about?
- When was the last time I reviewed my estate plan?
If answering these questions has made you realise there are a few gaps, don’t panic.
That’s exactly why you’re having the conversation now.
Estate Planning Is About Protecting the Living
Perhaps one of the most useful ways to think about estate planning is to reframe it.
Instead of thinking:
“I’m planning for death.”
Try thinking:
“I’m protecting the living.”
Estate planning can help reduce uncertainty, provide clarity and make things easier for the people you love during what may already be one of the most difficult times of their lives.
You don’t have to predict the future to plan for it.
You simply have to make your wishes clear.
And perhaps that’s what estate planning is really about.
Not planning for death.
Protecting the living.
If you’re unsure whether your Will, beneficiary nominations, powers of attorney or broader estate plan are up to date, speaking with the appropriate legal and financial professionals can help you understand what needs to be considered.
Don’t wait until you need the plan.
Disclaimer
Estate planning, succession and intestacy laws vary between Australian states and territories. This article is general information only and does not constitute legal or financial advice. You should obtain advice appropriate to your individual circumstances.
As always, any comments or messages are welcome. We are here to help.
General Advice Warning
The information on this website and the links have been prepared for general information purposes only and does not take into account your personal objectives, financial situation or needs. It is not intended to provide commercial, financial, investment, accounting, tax or legal advice. You should, before you make any decision regarding any information, strategies, or products mentioned in this email, consult a professional financial adviser to consider whether it is suitable and appropriate for you and your personal needs and circumstances.