Wills, passwords, tricky conversations: what to do now to make your death easier for your family
Death is never easy – but it’s inevitable. Why not try to make the financial and administrative work that follows it easier for your loved ones?
When we lose someone we care about, it is often the practical matters that weigh heavily on the surviving family members. Estate planning is an often overlooked aspect of preparing for death, but it can significantly reduce the burden on loved ones during an already difficult time. Here are some steps to consider.
Firstly, having a will is crucial. Estate planning goes beyond deciding who gets your money and possessions; it simplifies the process for your loved ones. According to government guidance, only about 40% of Australians have a will, and it is recommended to have it checked by a professional, especially if circumstances are complex.
If you die without a will, also known as dying "intestate", the law decides how your estate is distributed, which may not align with your wishes. This can be particularly problematic for blended families or those with complex financial arrangements.
Choosing an executor is another important aspect of will planning. The executor is responsible for administering your estate, which involves handling assets, debts, and dealing with various government agencies and financial institutions. It is essential that the person you choose is willing to take on this role and is familiar with their responsibilities. Discuss these expectations with your family to ensure they understand the role and are prepared to handle it.
Superannuation, another area often overlooked, does not automatically become part of your estate after death. Your super fund has specific rules about who receives your death benefit, which could include your account balance and insurance. A valid binding death benefit nomination can direct the trustee to pay your super to an eligible beneficiary. Checking your super beneficiary nominations is crucial to ensure your wishes are carried out.
Practical steps to make this process easier can include keeping a secure record of important information such as the location of your will, your solicitor, bank details, major accounts, investments, debts, insurance policies, and digital assets. A password manager can securely store your digital passwords, and you should inform the appropriate person about its existence and how they can access it.
Lastly, discussing your decisions with your family, particularly if they differ from cultural, religious, or family expectations, can help align everyone's expectations and make the process smoother.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
