Drafting a will in Australia is essential to guarantee that your assets are distributed according to your wishes after passing. However, it can be complex to understand the different types of wills available. This guide aims to give you a friendly and comprehensive overview of the types of wills in Australia, highlighting their characteristics, advantages, and considerations.
Simple Will:
A simple will is the most fundamental testamentary document, clearly outlining the distribution of your assets after your passing. This option best suits individuals with uncomplicated family structures and straightforward estates.
Advantages:
- Easy and cost-effective to create.
- Provides basic instructions for asset distribution.
Considerations:
- Not suitable for complex estates or unique circumstances.
- Future changes in circumstances need to be addressed adequately.
Mirror Will:
Mirror wills are separate documents created by two individuals, often spouses or partners, which mirror each other’s provisions. Each will reflect the wishes of the respective individual regarding asset distribution. Similar to joint wills, a mirror will offer more flexibility for each party to make changes independently.
Advantages:
- Flexibility for each individual to amend their will according to changing circumstances.
- Provides the same level of convenience as joint wills.
Considerations:
- Requires coordination between the parties to ensure consistency in provisions.
- All non-joint assets must be considered before finalising the will.
Testamentary Trust Will:
A testamentary trust will establish one or more trusts upon the testator’s death. Assets are transferred into the trust(s), managed by appointed trustees and distributed to beneficiaries according to the terms of the trust deed. Often used to protect assets, minimise tax liabilities, and provide ongoing support for beneficiaries.
Advantages:
- Offers asset protection and tax planning benefits.
- Allows for greater control over how assets are managed and distributed.
Considerations:
- Complex to establish and administer, requiring professional advice.
- May incur higher legal and administrative costs than other types of wills.
Choosing the correct type of will is essential to ensure your assets are distributed according to your wishes and that your loved ones are cared for after you’re gone. Whether you go for a simple will, a testamentary trust will, or a living will, getting professional advice can help you understand all the ins and outs of estate planning and ensure your wishes are legally binding. By learning about the different types of wills available in Australia and their respective advantages and considerations, you can make confident, well-informed decisions that suit your situation. If you need help with wills, don’t hesitate to contact VK Lawyers.