Getting your affairs in order in 2019

“What’s your New Year’s resolution?” I get asked multiple times within the first week of January, by various friends and business associates. Despite many of the answers that we give to this question being fairly shallow (lose 5kg, eat healthier, quit drinking/smoking, save money), the start of a new calendar year does make a lot of us think about a fresh start and doing things differently.

Then, by mid-January, we have left the resolutions behind, and often repeat the same patterns and habits that we’ve always lived by.

One thing that is often on the to-do-list of many people, although nearly half of all adults in Australia don’t have one, is to make a Will. Whilst a Will is a very important document, there are a number of things that need to be considered in the estate planning process to get your affairs in order.

Superannuation

Superannuation is likely one of your biggest assets, yet we ignore it, often until it’s too late. Superannuation is supposed to support us in retirement, and hopefully provide for us entirely, so we don’t have to rely on the government. For those in my generation, we may not have the option of a pension from the government. So superannuation is important.

Consolidating your superannuation is a priority - getting it all in the one plus will allow the power of compound interest to grow it faster. If you have multiple funds, choose which is the best fund for you. Then, that fund will have a form for you to fill in, authorising them to close your other accounts and consolidate them all into the one fund. Fill in the form and return it!

Also, superannuation does not automatically go to you family it something happens to you. Your superannuation is not governed by your Will. So make sure you complete a binding death benefit nomination - to a valid beneficiary - so that your superannuation is not carved up amongst people that the superannuation fund chooses. 

Insurance

Work out how much debt you have, and get a life insurance policy that will pay it all off if you die. You don’t want to be leaving your loved ones with debt, as well as grief. 

Make sure it is life insurance, and not accident insurance, or some other limited policy that may not pay.

Also, consider paying the extra to make sure the life insurance will also pay you out in the event that you have a permanent disability. Your income earning capacity is another one of your best assets, and if you lose the ability to make money, how will you survive?

Guardians

If you have children under 18 years old, don’t leave it up to your family or the State Government to work out who your children should live with if you die. If you care about your children’s future, then take control of this decision whilst you can!

An appointment of guardians is usually made in your Will. But you can also leave instructions to your guardians, which can include where and how you’d like your children schooled, your values around discipline and pocket money, and what extra-curricular activities you want them to participate in.

Powers of Attorney

Last but not least, powers of attorney are a document that is usually done at the same time as your Will. Because a Will only comes into play once you die, you are likely to need someone with powers to manage you affairs in the event that you are in an accident but don’t die. 

This can include making sure bills are paid, making sure your children are looked after, and making sure your world continues to operate until you are well again.

And one of the best things is that you don’t need a new year to get your affairs in order - you can make the decision now.

As Nike says - just do it!