Common will-writing mistakes (and how to avoid them)
Common will-writing mistakes (and how to avoid them)
Have you been putting off tackling that pesky life admin, like creating or updating your will?
Writing a will can be one of the most powerful ways to protect your loved ones and help make sure your wishes are carried out after you're gone. Yet, it’s one of those tasks many of us delay — often until it’s too late. But putting off this essential step can lead to costly and avoidable mistakes that could impact those you care about most.
Whether you’re learning how to write a will for the first time or updating an existing will, understanding these common pitfalls can help you avoid unnecessary stress and complications down the road.
To provide expert insights, we spoke with James Ballantyne, an experienced estate planning lawyer, who shared his thoughts on how to avoid the most common will-writing mistakes and create a will that accurately reflects your current wishes and provides peace of mind.
Why is a will important?
A will isn’t just a formality — it’s a vital legal document that lays out how you would like your estate assets to be distributed after you’re gone. Without one, the law decides who gets what, which might not align with your wishes. A well-drafted and legally valid will gives you control, helps prevent disputes among family members, and ensures that your loved ones are taken care of.
According to James Ballantyne, "A properly drafted will offers several key benefits: You can specify who receives your assets, how much each beneficiary receives, and how they receive it, ensuring your wishes are honoured. Additionally, a will allows you to appoint a guardian for your minor children, ensuring they are cared for by someone you trust. Clear instructions in a will can help prevent disagreements among family members and can expedite the estate administration process after you pass away."
How to write a will: 5 mistakes to avoid
Crafting a will can feel overwhelming, particularly if you’re writing one for the first time. Discover five common will-writing mistakes and what practical steps you can take to avoid them.
Mistake 1. Not having an estate plan or will in place
One of the most significant mistakes people make is simply not having a will or estate plan at all. It’s easy to think you’ll get around to it later, but life’s unpredictability means it’s crucial to have these important documents in place sooner rather than later. Without a will, your estate is distributed according to the law, which may not reflect your personal wishes. This can result in dying intestate, leaving assets to be distributed according to state succession law rather than your own preferences.
Ballantyne emphasises the importance of starting early. "You should update your will if and when you have any significant changes in your circumstances,” he says, “What may have once been an appropriate estate plan may no longer be the case after events such as marriage, divorce, or the birth of children."
To avoid this mistake:
- Start early: You don’t have to wait for a "perfect" time to write your will. Being prepared can save you from many unnecessary challenges down the road.
- Review regularly: Update your will especially after major life events like marriage, divorce, or the birth of children, to ensure it accurately reflects your current wishes.
- Seek professional advice: An estate planning lawyer can guide you through the process and ensure your will is legally valid.
Mistake 2. Taking a DIY approach
With so many DIY will kits available, it might be tempting to save some money and go it alone. However, the legal landscape is complex, and even a small mistake could lead to big problems later on. A poorly drafted will can be contested, or worse, deemed invalid, which could lead to additional fees and stress for your beneficiaries. It’s also important to include a binding death benefit nomination if you have superannuation, as this ensures that your superannuation funds are distributed according to your wishes.
"The rules relating to the execution and witnessing a will are very strict," Ballantyne explains. "If these formalities are not properly complied with, there is a risk that a document purporting to be a will may not be accepted by the Supreme Court, or that your estate will be put to the additional cost of proving the will. Seeking professional advice is crucial to ensuring your will is legally sound and reflects your individual circumstances."
To avoid this mistake:
- Consult a professional: A professional can help ensure your will is legally binding and tailored to your individual circumstances, while also making sure you meet all the legal authority requirements. Especially if your financial situation involves complex assets like an investment property or life insurance policies.
- Consider your unique circumstances: Keep in mind that off-the-shelf will kit solutions may not consider individual family dynamics or complex asset structures.
- Understand the risks: Be aware that even small errors in a DIY will can have big consequences for your beneficiaries.
Mistake 3. Appointing the wrong executor/s
Your executor is responsible for carrying out your wishes provided in your will, so choosing the wrong person may lead to delays, conflicts, and even legal challenges. It’s important to appoint someone who is trustworthy and capable of handling the responsibilities that come with the role, to make sure that your will remains a legally valid document.
Ballantyne highlights the importance of careful consideration, as he explains, “Failing to include backups for key roles, such as executors, can create significant issues. It’s crucial to have contingencies in place in case your primary choices are unable to fulfil their duties when the time comes."
To avoid this mistake:
- Choose wisely: Consider the person's financial awareness, availability, and ability to handle potentially stressful, time-sensitive situations with a cool head.
- Discuss the role: Make sure your chosen executor is willing and able to take on the responsibility.
- Include a backup: If possible, appoint an alternate executor in case your primary choice is unable or unwilling to fulfil their duties when the time comes.
- Consider a professional: In some cases, appointing a professional executor, such as a trustee company, might be the better option, especially for complex estates.
Mistake 4. Not communicating with your family about your wishes
"Clear instructions in a will can help prevent disagreements among family members about how your estate should be divided," says Ballantyne. "This can minimise family disputes and help to expedite the estate administration process after you die."
Keeping your will a secret might seem like the easiest route, but it could create confusion and disagreements among your loved ones after you pass away. If possible, clear and open communication can help to prevent misunderstandings, ensure everyone is on the same page, and ensure that your will and other legal documents are respected after your passing.
To avoid this mistake:
- Have open discussions: Talk to your family about your plans and the reasoning behind your decisions, and if necessary, document these conversations to avoid any confusion later.
- Address potential conflicts: If you anticipate disagreements, consider addressing them in your lifetime or explaining your choices in a letter accompanying your will.
- Be clear about expectations: If you're leaving unequal shares to beneficiaries, contemplate explaining your rationale to minimise potential hurt feelings or misunderstandings.
Mistake 5. Missing assets or not clarifying ownership
It’s easy to overlook assets, especially those that aren’t immediately visible, like digital bank accounts or shared properties. Not clarifying ownership or missing assets could potentially complicate the distribution of your estate.
Ballantyne notes, "Failing to deal with all assets can result in a partial intestacy, meaning your assets could be distributed to people you do not wish to receive a benefit. A properly drafted residuary clause is essential to cover any assets not specifically mentioned in your will."
To avoid this mistake:
- Create a detailed inventory: List all your assets, including physical property, investments, and digital assets, and keep them into a safe place so that you and your executor can easily access.
- Clarify ownership: Ensure your will accurately reflects which assets are personally owned and which are held in other structures.
- Consider future assets: Include provisions for assets you might acquire in the future, ensuring your will remains relevant as your financial situation evolves.
- Update regularly: Review and update your will whenever you acquire significant new assets, including physical property, life insurance policies, and digital assets, or if your financial situation changes.
Taking care of these details not only prevents headaches for your loved ones but also gives you peace of mind knowing everything is in order. After all, we’re firm believers that a little planning now can make a big difference later.
Keep reading: Learn to understand probate when creating a will.
Writing a will may seem time-consuming, but it’s an essential part of safeguarding your legacy and protecting your loved ones. By avoiding these common mistakes and seeking expert guidance, you can ensure that your wishes are honoured, and your estate is managed smoothly. Remember, it’s never too early to start planning for the future.
Whether you’re looking for a life insurance policy, funeral insurance, or any other type of coverage, finding the right policy can provide added peace of mind. Explore your options and request a quote online today.
4 Nov 2024