Estate planning is more than just having a Will, and people are often surprised to learn that only having a Will in place may not be enough to ensure your wishes are carried out.
In this blog, we’ll guide you through the difference between a Will and an estate plan, and why having both are crucial to giving you and your loved ones peace of mind.
What’s a Will?
A Will is one of the most important documents you can put in place now to protect your loved ones in the future. It gives you the chance to clearly set out what you’d like to happen to your assets after you pass, including your home, savings and belongings. You can also use your Will to name guardians for your children, leave gifts to family, friends or charities, and choose a trusted person to carry out your wishes, known as an Executor.
Having a Will gives you peace of mind and removes some of the stress for the people you care about. And while it’s a key part of the process, it’s also just one piece of the bigger picture when it comes to looking after your future (cue the role of the estate plan).
What’s an estate plan?
Estate planning involves preparing for the management and distribution of your assets after your death, as well as if you’re unable to do so in your lifetime due to illness or injury. Although an estate plan includes a Will, it also includes other important documents to protect you and your assets (that aren’t protected by a Will itself). It also ensures you’re protected while you’re still alive, but unable to make decisions on your own.
To put simply, a Will dictates with what happens after you die, while an estate plan covers both that and what happens if you’re unable to manage things during your lifetime.
What’s included in an estate plan that isn’t in a Will?
Beyond a Will, an estate plan also includes:
- An Enduring Power of Attorney.
This is someone to help you make decisions about important things, including finances and property, if you’re unable to do so yourself. Read more about POAs in our blog here. - A Medical Treatment Decision Maker.
This is a trusted person to make medical decisions for you if you’re unable to do so due to illness or injury. - An Advanced Care Directive.
This is a document which allows you to express your wishes around the kind of care or treatments you’d prefer or like to avoid. - Superannuation and life insurance nominations.
This ensures your superannuation and life insurance benefits go to the right people, as these are not automatically included in your Will. For more information, read our blog here. - Trusts and tax planning.
For more complex situations, such as owning a family business or having loved ones with special needs, additional tools like trusts or tax planning strategies can be part of your estate plan, too.
Estate planning is about making thoughtful decisions now to ensure your wishes are honoured and your loved ones are cared for in the future. At Waters Lawyers, we understand that this process can feel overwhelming, but with the right guidance, it can also bring peace of mind.
For more information about Wills and Estate Planning, visit our website or phone our friendly reception team on (03) 5996 1600 to book a complimentary consultation today.
