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Why every Australian family needs to get this right and what most people miss.
There’s a costly assumption many Australians make, and it can derail even the best-laid financial plans – thinking your Will controls everything. It doesn’t. For example, superannuation doesn’t automatically follow your Will. Without a valid nomination, your super funds trustee gets to decide who receives it. This is just one of many blind spots in estate planning.
For too long, estate planning has been treated as something for ‘later’ or something only the ultra-wealthy need to worry about. But that mindset is dangerously misguided.
Why estate planning is no longer optional
Australia is in the midst of a massive intergenerational wealth transfer, with over $3.5 trillion expected to pass down to the next generation by 2050. At the same time, family structures have become more complex: blended families, second marriages, estranged children, business succession issues and the rise of digital assets all add layers of complication.
Without a clear, up-to-date plan the fallout can be devastating:
- Assets ending up in the wrong hands
- Family disputes that drag on for years
- Expensive legal battles and avoidable tax bills
- Delays that leave dependents financially vulnerable.
The essentials you need to get right
A comprehensive estate plan goes far beyond just having a Will. Here are the key elements every adult, regardless of wealth, should review:
Superannuation beneficiary nominations
Your super may be one of your largest assets, yet it doesn’t automatically form part of your estate. Ensure you have a valid binding death benefit nomination in place and review it every few years or after a major life event (like divorce). There are different tax consequences depending on who the monies are going to, so be aware of this and speak to an expert.
Enduring Power of Attorney and medical decision maker
If you lose the capacity to make decisions, even temporarily, who steps in? These documents allow someone you trust to manage your financial affairs and make medical decisions on your behalf. Without them, your loved ones may face months of legal red tape and court involvement during an already difficult time.
Regular Will reviews
A Will isn’t a ‘set and forget’ document. Life changes, your Will should too. Common triggers for review include:
- Marriage or divorce
- Birth of children or grandchildren
- A significant change in your assets
- Death of a named beneficiary or executor
As a rough rule of thumb, revisit your Will every three to five years, even if it’s just reading it over to make sure it still is appropriate.
Guardianship of children
If something happened to you tomorrow, do you know who will care for your children, and how? This is one of the most important parts of a young family’s estate plan.
Testamentary trusts
For those with complex family structures, or more significant assets, testamentary trusts can provide powerful tax and asset protection benefits for beneficiaries, especially if they are minors, going through a divorce or facing financial hardship. This isn’t about ruling from the grave, it’s about providing the option for flexibility.
Estate planning is an act of love
We get it, nobody likes thinking about death. But estate planning isn’t about that. It’s about protecting what matters most to you.
- It’s about ensuring your wishes are honoured
- It’s about sparing your loved ones from stress and confusion
- It’s about clarity, control and kindness.
Ask yourself, if something happens tomorrow, would your family know what to do? Would your assets go where you want them to? Would your children be protected?
If you’re unsure, now is the time to act.
The earlier you put a plan in place, the more flexibility and peace of mind you gain, not just for you, but for your entire family.
Meet Nick at Strategic Wealth or Find a Planner near you!
The Money & Life website is operated by the Financial Advice Association (FAAA). The views expressed in this article are those of the author and not those of the FAAA. The FAAA does not endorse or otherwise assume responsibility for any financial product advice which may be contained in the article. Nor does it endorse or assume responsibility for the information.
