Revealed: Top Mistakes Couples Make When Planning Their Estate
So you’ve read about the reasons you need an estate plan. Or maybe you’ve heard a horror story from a friend of a friend. Now you’ve decided…it’s time to get your estate ducks lined up.
The first step can be the most difficult and we’re here to help you at each step of the process. There are a few mistakes we’ve seen couples make that we want to help you avoid.
First, this may seem quite obvious, but the first mistake families make when planning their estate is actually not planning their estate. It might surprise you to hear that at least 45% of Australians don’t have a Will! That’s right, one in two adults do not have a simple Will in place. Now, while we can’t be entirely sure why that statistic is so concerningly high, we have some suspicions. Perhaps some of these reasons resonate with you…
The plan has to be “perfect”. The first reason we suspect couples put of getting their affairs in order is the perceived need for it to be “perfect”. And, while it’s completely understandable that couples want to get it “right” when it comes to planning for their children’s future, the desire to get it “just right” can be paralysing, leading couples to put off creating an estate plan altogether. But life isn’t like that, and there may never be a perfect time to plan your estate. When it comes to estate planning, it’s better done than perfect. We can always update decisions later or add to the plan as your family and assets grow.
The next mistake we see couples make is not discussing their estate plan. Talking about death is not easy. The topics estate planning raises are uncomfortable topics. Couples can feel overwhelmed with the “what ifs”… what if we don’t agree? What if I have to raise the kids alone? Or they’re left without either of us? Talking about it makes the far-fetched more real. Yes, it can be scary and uncomfortable, but it’s better in the long run not to shy away from these tough conversations. Put the kettle on or pop open a bottle of wine. Sit down together after the kids are asleep. Listen and share. If you need a little extra help, we have put together a worksheet to help you Name Your Team.
It’s important to get on the same page. You might have different preferences and ideas. Talk these out! Acknowledge that you love each other and the thought of one or both of you dying is scary. Then put your practical caps on and consider the following questions:
Who would you like to care for your children if both of you die?
Who should make legal, financial or health decisions if one or both of you are incapacitated?
Who has the financial knowledge to take care of the paperwork and administer the estate?
Who would you like to leave your assets to? Would you like to make specific gifts?
We’ve helped countless families through these difficult conversations as well as helped many put their plans into place. At The Estate Planning Centre, we focus on the discussion, not just the outcome or documents we hand over at the end. We facilitate discussion and are here to help you through the process so your family can thrive, no matter what the future holds.
Contact The Estate Planning Centre (office@theestateplanningcentre.com.au) or make an online booking here, to arrange a consult with one of our estate planning lawyers.