Do I need a will?

There is a bit of a misconception that you don’t need a Will unless you have a lot of money but this couldn’t be further from the truth.

So first thing’s first, what is a Will? A Will is a legal document which sets out your wishes should you pass away. Both my wife and I have a Will which leaves our assets to each other and in the event we both die, distributes it amongst our family. You can also draft your Will for any assets to be passed on to your children (or somebody to hold for them on trust).

So do you need a Will if you don’t have much money? The answer is a strong yes.

What a lot of people don’t take into account when working out ‘if they have a lot of money’ is whether they have any superannuation or life insurance. If you have held a steady job for a few years, there is a good chance you have a fair chunk of money in your super fund. More importantly, there is a good chance you have life insurance in this fund which could equal hundreds of thousands of dollars (I’m serious, look it up). If you were to die, I’m sure you would want to make sure this went to the right people and that it was an easy process.

See, you don’t ALWAYS need a Will. You could ignore it and if you died, your intended recipient can make application for the funds but, depending on whom else decides they might be entitled to this money, they may face a long, frustrating and expensive court battle to get there.

You don’t think your family would do that to your wife/husband/children etc? Guess again. I find that when it comes to large sums of money people tend to get a little bit nutty. I think we have all heard examples of a relative passing away and suddenly a whole group of other relatives appear all putting their hand out for a piece of the pie.

Another reason to have a Will is to specify who you want as the guardian of your children or any intended children. Again, the last thing you want should you be involved in a tragic accident is your children being stuck in an uncertain limbo between two family members who feel they are better placed to raise your children.

With a good Will being relatively cheap and easy to do, why would you take the risk? At Bounce Financial, we work with a great lawyer who we refer our clients to for assistance with their Wills. What about you? Do you have a Will?

This post is from Ben Brett. Check out our details in the About Us page.

Posted in: Ben Brett, Financial Planning and Superannuation