Estate planning is one of those financial to-dos many people put off – often until it’s too late. But having a clear and legally sound plan for what happens to your assets after you’re gone is one of the most important steps you can take to protect your loved ones and your legacy.
At Financial Framework, we see firsthand how poor estate planning can lead to confusion, delays, unnecessary taxes – and even bitter family disputes. Here’s what every Australian should know:
What is Estate Planning, Really?
Estate planning is more than just writing a will. It’s a comprehensive strategy that outlines:
- Who inherits your assets
- Who looks after your children (if applicable)
- Who makes decisions on your behalf if you become incapacitated
- How taxes and liabilities are managed
It ensures your wishes are carried out clearly and legally, reducing stress and uncertainty for those you leave behind.
1. Why a Will is Just the Starting Point
A will is a legal document that outlines who gets what from your estate. But a will alone might not be enough:
- It only applies to assets owned solely by you, not those in superannuation, trusts, or joint ownership.
- It can be challenged in court if not properly constructed or updated.
- It doesn’t cover what happens if you’re alive but unable to make decisions (that’s where Powers of Attorney come in).
Tip: If you’ve had a major life event (marriage, divorce, children, or new assets), it’s time to review your will.
2. Trusts: When and Why to Use Them
Trusts can be a powerful tool in estate planning, especially for:
- Protecting vulnerable beneficiaries (e.g., minors, disabled children, or those with poor money habits)
- Managing tax effectively across generations
- Ensuring assets stay within the family and aren’t lost to divorces or creditors
Common types include testamentary trusts (created by your will) and family trusts.
Important: Trusts can be complex and must be set up correctly. Professional advice is essential.
3. Avoiding Family Disputes
A surprising number of wills are contested in Australia each year – often because they’re unclear, outdated, or perceived as unfair.
To minimise risk:
- Communicate your intentions early with your family.
- Be specific in your will and avoid vague language.
- Consider equal vs. fair treatment (they’re not always the same).
- Use binding death benefit nominations for super (these override your will).
4. The Role of Superannuation in Your Estate
Super isn’t automatically covered by your will. Unless you have a binding death benefit nomination, your super fund’s trustee decides who receives your super.
Check:
- Is your nomination current and valid?
- Is it binding or just non-binding (a suggestion)?
- Does it reflect your true wishes?
5. Power of Attorney and Guardianship
These documents ensure someone you trust can make decisions for you if you’re alive but unable to act:
- Enduring Power of Attorney – Financial/legal decisions
- Enduring Power of Guardianship – Personal/lifestyle/medical decisions
- Advance Health Directive – Specific medical treatment wishes
Take Control – Don’t Leave it to Chance
Estate planning isn’t just for the wealthy or elderly – it’s for anyone who wants to protect their family and assets. A well-structured estate plan ensures your hard-earned legacy ends up in the right hands, with minimal stress.
At Financial Framework, we work with your legal team or refer you to trusted specialists to help build a clear and strategic plan for the future.
