Bereavement
It’s important to spend some time thinking through your finances and planning what will happen to your money when you die.
Keep an up to date will
Your will is a legal document that sets out your wishes about how your remaining wealth is distributed when you die. If you die without a will (intestate) your estate is generally divided and distributed according to state or territory laws. This can cause expensive delays and result in family hardships and heartaches. Keep a legal will up to date and accessible.
Trusts
When someone dies, a trust can be set up to handle the estate. The trustee has the discretion, according to the will, to distribute the estate to the nominated beneficiaries. A testamentary trust may have taxation benefits, especially for children.
Seek advice
With the help of your financial adviser, you can make sure that any money you leave behind goes to the people you want it to in the most effective way. This is called estate planning.
Nominating beneficiaries
You can usually nominate beneficiaries for your superannuation fund, or your income stream. In this case your super assets may not form part of your estate. If you are uncertain about what happens to your super assets when you die, or your choices for nominating beneficiaries, talk to your super fund or to your financial adviser.
Life insurance
Life insurance provides for your spouse and dependants when you die. It's a good idea to review your life insurance needs whenever you reach a new life stage or event.
Enduring power of attorney
This is a legal document that provides authority to another person (attorney) to make decisions and act on your behalf should you become ill or incapacitated. An enduring power of attorney ensures your affairs can continue to be managed and only comes into effect if you are unable to make decisions or act yourself.
