Common Mistakes in Wills
1. Not leaving a Will
40% of people dont have a Will and their assets are distributed
according to Australian State Laws.
2. Not keeping your Will up to
date review your Will if your financial circumstances
or plans change, if you divorce, marry, or have children,
- also review your Will when an Executor dies or becomes unable
to act, and
- also review your Will if a beneficiary (someone who is left
a gift in the Will) dies.
3. Not providing for dependants
if you leave someone out of your Will, you should make
it clear in your Will why this has been done.
4. Being ambiguous this
leaves your Will open to dispute.
5. Not specifying debts to be
paid beneficiaries can be unintentionally liable for
the debt.
6. Not taking into account tax
tax might be payable on any assets sold.
7. Writing an informal Will
lists and letters may be treated as an informal Will, creating
delays and anxiety.
8. Not nominating guardians
for children or a spouse or adult children who need constant
care.
9. Using beneficiaries as witnesses
others could argue it influenced your decision.
10. Leaving assets in your Will
not owned by you for example, assets in a family trust,
self-managed super fund, business or partnership.
11. Assuming your superannuation
will bypass your Estate you can make a binding nomination
that ensures it goes to dependants, etc.
12. Not telling people where
your Will is located tell your Executor and at least
one other.
13. Not making provisions for
a residue if your assets continue to grow.
14. Not granting adequate powers
to Executors for example, the selling of assets, making
investment decisions, and disbursing superannuation proceeds.
15. Appointing someone with a
potential conflict of interest as Executor such as a
business partner who may wish to buy your share of the business.
Short
Guide to Making a Will
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