Why you’re never too young to have a Will and Estate Plan
There is a misconception that if you are young, you do not need a Will. Often you don’t think you have a lot, but if you look at your car, that bit of cash in the bank and all your other loose ends, you may have more than you think. Life is full of curveballs, and unforeseen circumstances can arise at any time. Although it’s important to live in the moment, it is also important to prepare for the unexpected, at any age.
You go travelling
Almost 1000 Australians die each year whilst travelling overseas, usually as a result of an accident or illness. This reason alone is why you should put your Will and Power of Attorney documents in place prior to heading off to explore the world. Add it to your list of things to do when preparing for your holiday and it will all be done in no time at all, leaving you with peace of mind as your plane leaves the tarmac, as you begin your overseas adventure.
You have a social media account
Social media is a big part of our lives, with many young people active on one or more social media platforms. It’s important to leave instructions in your Will regarding who you would like to manage your accounts upon your death, together with what you would like to happen to your photos and documents stored on these accounts. You may wish for some of your accounts to be memorialised or closed upon your death and need to provide clear instructions in respect to this.
You get to decide who gets your assets
A Will is the only place where you may stipulate who gets your assets when you die. If you want a say in who gets your worldly possessions, make sure you put a Will in place listing who is to receive your assets. If you don’t have a Will in place, that means that your assets are distributed in accordance with a government formula, and that means that your assets may end up with people who you don’t want to receive them.
Caring for your children
If you have young children, it’s important to make provision for their care, in the event that you are no longer here. By putting in place a Will it allows you to list who you would like to care for your children if you die. In addition, a Letter of Wishes allows you to list all of your wishes regarding your children and can be a helpful resource for your children and both your executor and your children’s guardian.
Making sure you have an Advocate
Many of us have the “It won’t happen to me” mentality, but sometimes it does happen to you. If the unexpected happened to you and you were in an accident, and as a result became incapacitated and unable to make your own decisions, you would want to have someone in your corner advocating for you. This may be a family member or a close confidant who you have a trusted relationship with. By putting an Enduring Power of Attorney in place, it allows you to appoint someone to make financial, legal and guardianship decisions if you were unable to do so. Whilst an Appointment of Medical Treatment Decision Maker allows you to appoint someone to make medical decisions for you.
Don’t forget your Super
Superannuation is a really important part of an estate plan, particularly when you are young. Why? Because many super funds also come with insurance components, and often the younger you are, the higher the insurance amount is. So even though you are young, if you die, your loved ones could be entitled to receive a significant insurance payout, irrespective of whether your superannuation balance is nominal. By putting in place a Binding Death Nomination in place with your superannuation fund, it allows you to stipulate who you would like your superannuation and life insurance (which is part of your superannuation fund) to be paid in the event of your death. Without a valid Binding Death Nomination, it is up to the discretion of the Trustee of your superannuation fund, where your superannuation is paid.
Everyone over the age of 18 should have a Will and Estate Plan, regardless of your health or financial status. It allows you to plan for the future and ensure that your wishes are documented and preserved so that if anything happens to you, things go the way you would like them to go. It will be hard enough for your loved ones to lose you so young, by having your Will and Estate Plan in place makes it that little bit easier for those left behind.