THE IMPORTANCE OF WILLS FOR YOUNG ADULTS

Few young adults consider the necessity consider estate planning. Preparing a will is necessary as unexpected events can leave families dealing with many avoidable legal headaches. Without a will, your assets, including savings, superannuation, and even digital assets like cryptocurrency, are left in uncertainty.

Q: What are the consequences of dying without a will?

A: Dying intestate, or without a will, means that the distribution of your assets will be determined by state legislation. This often leads to a more complicated and lengthy process, as the state will follow a predefined hierarchy to allocate your assets, which may not align with your personal wishes.

This process can be complex and time-consuming, leaving your loved ones to navigate legal hurdles during an already difficult time.

Q: How does superannuation and life insurance factor into estate planning?

Many young adults are unaware that superannuation and life insurance do not automatically form part of their estate. To ensure these assets are distributed according to your wishes, you need to make a binding death benefit nomination with your super fund. This nomination directs the fund to pay your benefits to your chosen beneficiaries and must be renewed every three years to remain valid.

Q: What should young adults consider about digital assets?

If you possess any digital assets, such as cryptocurrency, these require specific attention in a will due to their unique nature and the way they can be accessed. Many people may not be aware that without knowing where the digital currency is stored or having access details, these assets can be lost forever. Therefore, it is essential to provide clear instructions to the executor on how to access these digital assets. This includes information such as wallet keys, account details, and any necessary passwords to ensure that these assets are not forgotten or rendered inaccessible.

Conclusion

Even if you are young and healthy, having a will is a crucial part of planning for your future. It ensures that your assets are distributed according to your wishes and spares your loved ones from unnecessary legal complications. By taking the following steps now, you provide peace of mind for both yourself and your family:

  1. Estate Planning: Have a Will prepared with the assistance of a legal professional  to ensure that your wishes will be followed.
  2. Nominate Beneficiaries: Complete binding nominations for your superannuation and life insurance.
  3. Protect Digital Assets: Document access details for digital assets like cryptocurrency.
  4. Review and Update: Regularly update your will and nominations to reflect any life changes.

Author Adam Hussain.