key takeaways
Autumn is here, and with the change in seasons, it's a good time to consider any changes in your personal circumstances.
WHen do i NEED TO UPDATE MY DOCUMENTS?
Have you:
- bought or sold a house;
- started a new relationship;
- married;
- separated or divorced;
- welcomed a child or grandchild;
- started a business;
- received an inheritance; or
- changed your mind about who you want to receive your inheritance?
Have your beneficiaries:
- married;
- entered risky business; or
- experienced financial distress?
Can your Executors and Attorneys still act for you? Are the named beneficiaries of your superannuation eligible to receive your superannuation?
If your circumstances have changed or if you have not reviewed your documents recently, it's time to do so. Some changes like a marriage or a divorce can invalidate all or part of your Will.
Which Documents do I need to update when my circumstances change?
All adults should have a:
- Will;
- an Enduring Power of Attorney; and
- an Appointment of Enduring Guardian (if you live in NSW).
If you have superannuation, you should also make a Binding Death Benefit Nomination (BDBN).
When your circumstances change, it's important you update all of the relevant documents to the above to reflect these changes. We've outlined how you can do so below.
wills
Your Will names an executor and distributes your estate in accordance with your wishes.
If your assets have changed or if your executors' or beneficiaries' circumstances have changed, it's time to consider your Will. For example, you might need to:
- appoint new or substitute executors;
- make an alternative distribution of your estate;
- include a right of occupation in your Will;
- include testamentary trusts in your Will; or
- include a special disability trust in your Will.
Testamentary trusts can provide protection and tax benefits for your beneficiaries.
Special disability trusts assist families to care for a disabled beneficiary. They also enable the disabled beneficiary to receive means test concessions.
enduring power of attorney
Your Enduring Power of Attorney allows you to nominate a person to make financial, healthcare and personal decisions for you.
It's possible to name different people as attorneys for different functions. You can also direct or limit your attorneys in any way you wish.
We can build protections into your Enduring Power of Attorney to protect you from elder abuse as you get older.
You might wish to specifically direct your attorney to do certain things, seek advice from your financial planner or accountant or prevent them from doing things.
Binding death benefit nominations
Your BDBN allows you to choose the person who receives your superannuation.
Superannuation can only be passed via a Nomination to a spouse, your executor or to a person who is dependant or interdependent on you.
Most Nominations also expire and need updating every 3 years.
You should review your Nomination at the same time as your Will to ensure that your documents achieve the desired result for your estate.
conclusion
There are plenty changes in life that, no matter how small they may seem to you, can affect your estate planning documents. It's important to review and update these documents as often as you can, and to be aware of what crucial moments and significant changes in life require this to be done.
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The Wills and Estates team at McInnes Wilson Lawyers has recently welcomed Lauren Babic. Lauren is based in our Canberra office and has diverse experience across a range of practice areas.
If you're interested in scheduling a meeting with one of our experienced estate planning lawyers, please fill out the enquiry form below and mention this article for an obligation-free appointment.
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