Year-End Estate Planning: Why Now is the Time to Update Your Will

As we approach the end of another year, most of us are thinking about holiday plans and New Year's resolutions. But there's one crucial task that often gets pushed to the bottom of the to-do list: updating your estate plan.

If it's been more than a few years since you last reviewed your will—or if you've experienced significant life changes—now is the perfect time to ensure your estate plan reflects your current wishes and circumstances.

Why Year-End is Ideal for Estate Planning

The end of the year naturally prompts reflection and forward-thinking planning. You're reviewing your year's achievements and setting goals for the future. This makes it an opportune moment to turn your attention to estate planning.

Additionally, ensuring your affairs are properly documented before the new year gives you peace of mind and helps you start fresh with the confidence that your loved ones are protected.

Signs It's Time to Update Your Will

Many people create a will and then file it away, assuming their work is done. However, life is constantly changing, and your estate plan should evolve with it. Consider updating your will if any of the following apply:

Major Life Events

• Marriage, divorce, or entering a de facto relationship

• Birth or adoption of children or grandchildren

• Death of a beneficiary or executor

• Significant changes in your relationship with named beneficiaries

• Separation from a spouse or partner

Financial Changes

• Substantial increase or decrease in assets

• Purchase or sale of real estate or investment properties

• Starting or selling a business

• Receiving an inheritance

• Changes in superannuation balances or beneficiary nominations

• Acquiring significant assets like shares or cryptocurrency

Personal Circumstances

• Relocation to a different state or territory (succession laws can vary)

• Changes in health status

• Adult children reaching maturity or experiencing financial difficulties

• Changing feelings about charitable giving

• Changes in family dynamics or blended family situations

Legal and Regulatory Considerations

• Changes in succession laws or superannuation regulations

• Updates to tax legislation affecting estates

• New business structures or trust arrangements

• Court decisions that may impact estate planning strategies

  
  

Common Estate Planning Oversights

Even well-intentioned estate plans can have gaps. Here are some frequently overlooked issues:

Superannuation Beneficiary Nominations: Many Australians don't realise that superannuation doesn't automatically form part of their estate. Your super fund pays death benefits according to its trust deed and your binding or non-binding death benefit nomination—not your will. It's essential to review and update these nominations regularly, as binding nominations typically expire after three years.

Guardianship Appointments: If you have minor children, your will should name guardians. The people you chose five or ten years ago may no longer be the best fit due to changes in their circumstances—or yours.

Digital Assets: Modern estate plans should address digital assets, including social media accounts, cryptocurrency, online banking, cloud storage, and other digital property. Without proper documentation, your executor may struggle to access these assets.

Powers of Attorney and Advance Care Directives: While separate from your will, an enduring power of attorney and advance care directive (also called a living will) are crucial components of a complete estate plan and should be reviewed simultaneously.

Testamentary Trusts: Many people miss the opportunity to include testamentary trust provisions in their will, which can provide significant tax benefits and asset protection for beneficiaries, particularly minor children or vulnerable family members.

The Cost of Procrastination

Failing to update your estate plan can lead to unintended consequences. An outdated will might leave assets to a former spouse, overlook new family members, fail to account for blended family situations, or not reflect your current values and priorities.

Without proper planning, your loved ones may face unnecessary legal complications, family disputes, and potential challenges to the estate. The emotional toll during an already difficult time can be significant.

Take Action Before Year-End

Updating your estate plan doesn't have to be overwhelming. Start by gathering your current documents—including your will, any powers of attorney, and superannuation beneficiary nominations—and making notes about what has changed in your life since they were created. Schedule a consultation with an experienced estate planning solicitor who can review your situation and recommend necessary updates.

At Yorkins Legal, we understand that estate planning involves more than just legal documents—it's about protecting your legacy and providing for the people and causes you care about most. Our experienced team can help you navigate the complexities of NSW succession law and create a plan that gives you confidence and peace of mind.

SEEKING LEGAL ADVICE

The circumstances for each person's estate can be different. Before finalising your will or making changes to your estate plan in NSW, you should always plan ahead by speaking with an experienced estate planning solicitor about your matter.

At Yorkins Legal, a trusted Sydney law firm specialising in wills and estate planning, we aim to give our clients hassle-free legal services. Our estate planning lawyers can assess and advise on your circumstances to ensure your will and estate plan are properly structured and legally sound.

Contact Yorkins Legal today to speak with a wills and estates lawyer who can help protect your legacy and provide peace of mind for your family.

Related Solicitor

Kai Yeung

Principal Solicitor

E: kyeung@yorkinslegal.com.au 

T: (02) 7255 2788

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Disclaimer - The information contained on this site is intended only to provide a general overview of matters of interest and is intended to apply only within Australia. It does not constitute legal advice. Professional advice should be obtained from a Yorkins Legal professional before taking any action in relation to any information contained on this site.

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