When thinking about the future, preparing a will is a crucial step in ensuring your wishes are honoured. In Australia, there are several types of wills, each catering to different needs and circumstances. Understanding these differences is vital in choosing the right will for your situation.
This article aims to simplify this process, providing you with the knowledge needed to make an informed decision.
Types of wills
Simple will
A simple will is exactly what it sounds like – straightforward and uncomplicated. It’s best suited for individuals with a straightforward estate and clear instructions on how their assets should be distributed. Typically, it outlines who will inherit your assets, who will be the executor, and who will be the guardian for any children under 18.
Testamentary trust will
This type involves creating a trust within the will. It’s ideal for those wishing to have more control over the distribution of their assets, such as setting conditions on when beneficiaries can access their inheritance. It’s particularly useful for beneficiaries who are minors or those who may not manage a lump sum inheritance wisely. In this way, Testamentary trust wills can offer protection to vulnerable beneficiaries.
It is a wise consideration to have a Testamentary trust will if beneficiaries are on government supported pensions (such as for study, or the aged or sole parent pensions), or if any beneficiary is in a high income bracket, or runs their own business, as there are substantial tax benefits to an inheritance under a Testamentary trust will.
A Testamentary trust can provide much greater flexibility for beneficiaries, or conversely, much more control on the distribution of assets depending on your wishes.
Living will or Advance Care Directive
Distinct from the others, a living will focuses on your healthcare and end-of-life decisions rather than asset distribution. It specifies your wishes regarding medical treatment should you become incapable of communicating them yourself. This document is crucial for ensuring that your healthcare preferences are respected.
International will
This type of will is designed to comply with the requirements of the International Wills Act, which allows for a standardised format of wills that can be recognised across multiple countries. This can be particularly useful for individuals with assets or interests in multiple jurisdictions.
Holographic will
A holographic will is a handwritten will that is entirely handwritten and signed by the testator. While they are recognised in some Australian states, they are subject to stricter requirements than typed or printed wills and may be more easily challenged in court.
Choosing the right will for your needs
Selecting the appropriate will requires careful consideration of your personal circumstances, assets, and how you wish them to be handled after your passing. A simple will might suffice for straightforward estates, but those with more complex assets or specific wishes for their distribution might consider a testamentary trust will.
Lastly, irrespective of your financial situation, a living will is advisable for everyone to ensure your healthcare wishes are followed.
By understanding the different types of wills and considering personal and financial circumstances, individuals can make informed decisions that protect their interests and those of their beneficiaries. Remember, the guidance of a legal professional is invaluable in this process.
Key takeaways
- Consider the complexity of your estate
- Think about the needs of your beneficiaries
- Reflect on your healthcare wishes
- Consult with a legal professional to guide you through the process
Making a will - and doing it properly
Our wills and estates team offer impartial, expert guidance on the most effective way to organise your will, guaranteeing the efficient management and fair distribution of your estate.
Collaborating closely with you, we delve into your unique financial and personal situation to ensure sufficient provision for your loved ones. With the support of our team, crafting or refining your will to align with your specific requirements will provide reassurance for both you and your family.
Create a will online, today
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How can I learn more?
Julie Chambers.
Practice Group Leader.
- Wills & Estate Planning
- 03 9890 3321
- Email Address: j.chambers@robinsongill.com.au
Kelly Brown.
Associate.
- Property and Wills & Estates
- 03 9890 3321
- Email Address: k.brown@robinsongill.com.au
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