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1. Should I make a will?
Everyone should have a will. A will is the only way you can tell others how you want your assets to be distributed after your death. It is the only way you can provide for people who may depend on you financially, e.g. children. 2. Can I leave a child out of my will?
You have to be very careful about doing this. Children may be able to challenge your will if you don't make adequate provision for them. And it's no good including a term in the will that anyone who challenges the will loses their inheritance. This would not be valid. 3. Does it matter if I am very sick when I make the will?
As long as you have the mental capacity, it's OK. But it’s a good idea to get a statutory declaration from a competent doctor to prove that you understood what you were doing when you signed the will. In some States a court can make a will for you in certain circumstances, if you don't have sufficient "mental capacity". 4. What can I include in a will?
You can include: · assets, such as houses, cars, money, shares, cash, etc; and · specific belongings such as a violin, painting, books, photos. Be sure if you list specific items that they are easily identified. Note. Some assets, such as superannuation and life insurance cannot be distributed in a will. 5. Can anyone be a witness?
No. The witness should not inherit anything under the will, or be your spouse/de facto. It is also best that the witness not be anyone who is married to a person who inherits under the will. It is sometimes possible to have a will declared valid if it does not conform to the technicalities, but it is far better to do it properly in the first place. 6. What happens to debts?
Unfortunately for those who survive you, any debts that you have while you are alive remain as debts. 7. What if I don’t have a will?
If you die without making a valid will, you leave what is known as an “intestacy”. This means you have not validly disposed of some or all of your assets. Many people believe the Government takes their assets if they die without a will. This isn't completely true. It could only happen if you have no living next of kin. However, if you die without a will, your assets will be distributed according to a legal formula. This might mean that your assets do not end up with the person you would have chosen. It also means that you have no control over who distributes your assets. 8. Who arranges the funeral?
Funerals could be arranged by anyone, but they will be paid for (or reimbursed) by the executor – the person who has the legal responsibility for this task. 9. What is estate planning?
Good question! We won’t bore you with the 200 word definition. In simple terms – it's a way of ensuring that a person’s estate is passed onto their beneficiaries in the most financially efficient and tax effective way possible. 10. What is the difference between an executor and a trustee?
They are often the same person. The executor sees that the will is carried out according to the instructions of the person who has died. The trustee looks after assets on behalf of a beneficiary (usually children until they reach a certain age), or because you have set up other trusts in your will. LAW FOR YOU Read this: This fact sheet is intended to be general information about the law in Australia. It is not a substitute for legal or other professional advice. Lawscape Communications Pty Ltd, Fairfax Interactive Pty Ltd or MoneyManager does not accept responsibility for loss to any person, who either acts or does not act because of this fact sheet. © Lawscape Communications P/L Last Updated – March 2007
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Each week financial advisor Noel Whittaker answers your
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