No one wants to think about the day they die. And yet…having a healthy acceptance of our eventual demise can help us to appreciate the present. If we can accept the reality that we won’t be around forever, perhaps the things that light us up right now might have some extra sparkle. Looking ahead in a considered and organised way will give you peace of mind and help you live fully, without regrets.
If you are middle aged or older without an Estate Plan in place, now is the time to get started. End of Life Planning doesn’t have to be morbid and you don’t have to wait until retirement age to start the process. Estate Planning can seem daunting which is why many people put it off, but if you begin the process today you can get the wheels in motion. Arranging your Estate isn’t just for the wealthy either. No matter your financial situation, everyone should have a plan in place, make their wishes clear and communicate where to find critical paperwork.
Carefully collating your personal finances with the future in mind is a great opportunity to get organised in the following ways:
- Track down and store important personal identification and finance paperwork in one secure place.
- Do a thorough audit of all existing financial arrangements.
- Review your bank accounts, credit cards, fees, balances and debts.
- Review your mortgage, interest rates and fees.
- Review your Superannuation and ensure beneficiaries is up to date and according to your wishes.
- Update any insurances (home, car, life and health), ensure all policies are relevant for your age and circumstances, and check all information is up to date.
- Check and update the value of your physical and non-physical assets.
- Write your Will or update it (read about creating your Will here and nominate beneficiaries.)
- Assign a Power of Attorney.
- Nominate an Executor.
- Assign an Enduring Guardian (in case of serious injury where you cannot advocate for your own health, wellbeing and lifestyle).
- Create an Advance Care Directive (this will allow you to express your wishes regarding medical treatment and end of life care in the event you can’t express this at the time.
- Set up a Trust (if required) in order to help minimise taxes and protect assets.
- Assign a Guardian for dependant children if applicable (who will look after your kids if they are under 18 in the case of your death).
Many people enlist Estate Planning professionals to ensure documents are legal, all wishes are carried out and to help navigate the complexities of wealth transfer, taxes and potential social security payment implications. A financial planner or a solicitor who specialises in estate planning can assist. Or you may choose to use a Public Trustee service (such as NSW Trustee and Guardian or TAG which gives you access to legal support for a set fee). Some people choose to carry out their own Estate Planning.
However you decide to arrange your end of life paperwork here are a few tips:
Create a secure and organised system so loved ones can fulfil your wishes without confusion or overwhelm. At bare minimum ensure you have an up to date Will. - If you choose to do your own Estate Planning use an Estate Planning template (find them online) for some guidance around how to list your financial details and to ensure you don’t miss anything.
- You may wish to invest in a fire and waterproof safe to store all your legal and personal documents such as your Will, personal identification documents and any other legal paperwork. You might like to include personal letters to loved ones as well as a letter outlining requests for your funeral including things like your favourite flower or song. Affordable safes can be purchased from Officeworks and Bunnings.
- You may like to store in your safe a document which lists any personal or financial information your family will need to access after you pass away. Suggestions include a list of bank accounts (include account numbers and financial institution); superannuation accounts (include fund, policy number and super balance at time of writing); investments and their value; any debts and their value, ABNs or company legal documents and details; list of Properties (their addresses, amount owing on mortgages and any property management contact details for investment properties).
- Appoint a trusted loved one (such as a sibling or very close friend) with a document outlining a summary of what is contained in the safe as well as a list of names (and their contact details) of who to contact in the case of your death (close family members and relevant professionals such as accountant, solicitor or business partners). Give this contact the location of the safe and its combination so they can assist your family to gather paperwork and fulfil your wishes after you pass away.
- If you are in a relationship store end of life documents for both parties together and ensure you both know the location of these documents. If stored in a safe, make sure you both have the access code kept securely. This will make things super easy if something happens to one or both of you as all the planning is done for you.
- Consider setting up a password manager to store all your online passwords and log in details. Password managers generate unique, strong passwords and securely store them via a master key password. They also include features allowing you to share passwords with trusted people in case of an emergency or death.
If any of the above feels too overwhelming, enlist an estate planning professional to assist with the process.
Once this task is completed you will longer have a burdensome ‘to do’ in the back of your mind. You’ll feel content and know you’ve done all you can to make things as easy as possible for your loved ones when your time comes. This process will also reveal to you the exact state of your personal finances which will be helpful while you are still alive! Your effort today will make things so much easier for your loved ones in the future.
Estate planning really is a gift of love.
For some more information about Estate Planning and where to find assistance, Australian Mutual Bank can direct you to a financial planner who can assist you with setting up an estate plan, ensure you have a valid Will, and guide you through other important processes.
Alison Gallagher is a freelance writer, resourcefulness expert and entrepreneur. She has been featured in various publications including Stellar Magazine, Australian Health and Fitness Magazine, and Cleo Magazine. Alison is particularly passionate about sharing practical tips on how to live simply, sustainably and seasonally.
