5 tips for writing a will

22 Sep 2015

As the saying goes, the only inevitable things in life are death and taxes. From choosing the right executor to carry out your wishes after death to considering what to leave for your beneficiaries, here are a few helpful tips from finance experts on how to put your will together. 

1. Choose your executor carefully

Your executor will be responsible for a wide range of tasks, such as locating the will, organising your funeral, arranging probate, collecting the assets, repaying debts and distributing the assets, says Matt Torney from Muirfields. So it’s important to choose someone who you can trust and understands exactly what you want. 

Heidi Schwegler from AHS Financial has seen some horrible instances where executors have not carried out the wishes of the deceased.
“I’ve heard of stories where the executor gave the deceased’s car to her children and kept family heirlooms for herself instead of distributing them to the family members,” she recalls.

Another option is to consider appointing a trustee company instead of a family member or friend particularly if your estate is complicated.

“A trustee company provides expert administration and legal services and charges a fee, typically paid from your estate, after your death,” suggests Matt.

It’s also a good idea to have a back-up executor, in case your chosen executor is not available to take care of the necessary tasks, says Heidi. 

2. Consider the impact of your beneficiaries receiving an inheritance 

“Are they responsible enough to receive a lump sum or do you need to consider holding their inheritance in trust?” asks Heidi. For example, one of your beneficiaries may have a gambling addiction and you may not want to give him or her a large amount of money in one go.

3. Who are your beneficiaries?

“While you can leave your estate to pretty much anyone you like, you do need to be careful. Challenges against a Will often occur when people feel they haven’t been provided for fairly,” warns Matt.

Another option is to leave a letter of wishes, if you’re concerned that your will may be challenged. This will explain why the will has been drafted and can be referred to when a claim is being defended. 

4. What assets will your beneficiaries receive?

While you may want to make a long list detailing exactly which assets your beneficiaries should own, the value of those items may change significantly at the time of death. 

“It can therefore be a good idea to only gift a small number of specific assets in your Will and assign a percentage of the remainder of the estate to each beneficiary,” says Matt. 

5. Consider a testamentary trust

“A testamentary trust is a special type of trust that comes into effect upon your death, if you have included specific provisions in your will. Because the trustee owns and controls the assets, your estate can be protected from a number of potential risks and your beneficiaries can be provided for in a tax-effective manner,” says Matt.

“Naturally everyone’s situation is different and we recommend you seek professional advice when planning your estate.”