The Pitfalls of Having Assets Under the Will in NSW Australia 

Estate planning is an important part of ensuring financial security and peace of mind. It is managed in New South Wales, Australia, by a series of laws designed to safeguard the interests of all parties involved. However, understanding the possible difficulties of holding assets under your will and how these hazards are in NSW is critical. 

Assets Under the Will: A Common Practice  

In Australia, it is common for individuals to include property in their wills believing it to be a shortcut to distributing their assets. Generally, the assets included in wills can range from trusts to personal property. While this approach may seem simple, there are several shortcomings that individuals should be aware of in their estate planning. 

The Pitfalls of Having Assets Under the Will  

#1 Probate delay 

If assets are declared out of your will, they generally need to go through the probate process. Probate is a legal process that sets out your wishes and ensures that your instructions are followed. This process can be time-consuming and can delay property distribution. 

#2 Disclosure 

A will become a public record once it has gone through the probate process. This means that anyone can access and review the details of your will, including estate values ​​and details of beneficiaries. For those who value privacy, this lack of privacy can be a major drawback. 

#3 Contesting the Will  

Including property in a will can make it easier for disgruntled family members or other interested parties to challenge the distribution. This can emotionally remove the legal disputes that could drive down the value of the property.  

#4 Complex Estate Distribution  

When assets are distributed through a will, the process can be complicated and lengthy, especially when there are multiple beneficiaries or joint estates that require specific instructions. 

#5 Tax Implications 

The way assets are distributed can have significant tax consequences. Assets that pass through your will may be subject to capital gains tax or other taxes that could have been avoided with better estate planning strategies.  

How Can These Pitfalls be Solved? 

Your assets will be safe and secured under the following legal instruments.  

#1 Testamentary Trusts 

Even if you have written a will, you can create a Testamentary trust in your will. Instead of giving assets to a beneficiary directly, they are transferred into a trust and held on behalf of a single or group of beneficiaries. The testator of the will determines which assets are transferred to which beneficiary. They provide greater flexibility, tax benefits, and the ability to protect assets from legal challenges.  

#2 Enduring Power of Attorney  

The enduring power of attorney allows you to appoint someone you trust to manage your financial and legal affairs if you become incapacitated. This ensures that your assets are managed by a responsible individual in case you cannot do so yourself.  

#3 Binding Death Benefit Nominations  

If you have a Self-Managed Superannuation Fund (SMSF), you can make a binding death benefit nomination, specifying who should receive your superannuation savings in the event of your death. This ensures that your superannuation assets are distributed according to your wishes.  

By understanding these pitfalls and implementing these solutions, you can navigate the complex estate planning process in New South Wales and ensure that your assets are protected, your wishes fulfilled, and your loved ones will be provided in the most efficient and safe way.