Making the decision to write or update your Will is the first step on a straightforward but important process that will ensure your assets are passed on to your chosen beneficiaries in the safest and most effective way.

There are a few practical things to think about before you start:

What should be included in your estate?

Take a few minutes and make a list of the things that you actually own. A general list is fine – you don't need to write down every item of furniture – but include items such as your house, shares, bank accounts, pensions, valuable possessions and car.

Now look at the list and try to work out whether each item is owned wholly by you, or whether – like a joint bank account – it is owned with someone else. Try also to identify any items – perhaps your half share of your house – that will automatically pass to someone else on your death.

The longer your list and the more complex the arrangements you have already made, the more complicated your estate will be.

Do you own a business?

You need to be especially careful if you own a family business, as your estate planning decisions will cover your share in the business, and will impact on its long term success. You need to think about what you want to happen to the firm – and your beneficiaries.

Do you have superannuation and / or life insurances?

Don't forget about your superannuation death benefit. What will happen to it if you pass away before the fund matures? Surprisingly enough, it will not automatically form part of your estate unless you have signed a binding nomination to ensure that it is distributed in that way. Instead it will be dealt with according to the rules of your superannuation fund.

Similar issues apply to payments due under a life insurance policy, as these can be paid to nominated beneficiaries without forming part of your estate.

From a fairness point of view, therefore, before you decide who you would like to be a beneficiary under your Will, it is worth figuring out if anyone is due to receive funds held in superannuation and life insurance policies.

There are also tax implications in distributing assets from an insurance policy or superannuation fund. It's too technical an issue to go into in this blog, but just give us a call if you want to find out more.

Foreign or interstate assets

Remember to include any assets that are located abroad or in another state. Bear in mind that the inheritance rules may be different there, and this must be taken into account when preparing your Will.

Who are your main beneficiaries?

Now have a think about who you would like to inherit some or all of your estate. Do you have any dependents you need to protect? Are there any people you would specifically not like to inherit from your estate? Do you have any family relationships – such as a second family, for example – that mean your Will must be carefully thought through?

Do you wish to leave any small bequests?

Many people like to use their Will to acknowledge close friends, or causes that are close to their heart. If you would like to leave a set amount of money to a charity, or a specific piece of jewellery to your best friend, then a bequest is the way to do it. Make a note of your wishes, but remember – the more bequests you make, the less will be available for your main beneficiaries.

Who do you want your Executor to be?

The Executor is the person you appoint to manage your affairs after your death. He or she will be responsible for gathering in your estate and distributing it to the appropriate people, dealing with any issues and problems along the way.

It is a responsible role and should be given to someone you trust, and who you feel is capable to taking on the job. You can also appoint a professional person such as a solicitor or a trustee company to act as Executor for you.

Take professional advice

There is clearly a lot to think about when making a Will. Hopefully this list will have helped you to identify the practical issues, and work out what you would like to happen.

"Great!" I hear you say. "I'll go off and make my own Will now."

Feel free; there are many DIY Wills available online, after all. But, one word of warning - it is always difficult to turn wishes into reality, and this is especially true of Wills, where there are so many legal rules and formalities that it is easy to make a mistake.

Earlier in the year, the Law Society of New South Wales held a series of events to make the public aware of the potential pitfalls of using homemade Wills. Some of the biggest dangers the Society identified include:

These issues will only usually come to light after the owner of the Will has passed away and will often need to go to court to be resolved.

"Opting for an apparently 'cost-effective' do-it-yourself will can result in delay, uncertainty and substantial legal costs to the Will-maker's family and estate," said President of the Law Society of NSW, Mr Dobson.

"Dying without a Will in place or having a badly prepared one can cause major stress and expense [for] those left behind, and is an all too common cause of serious rifts between amongst family members," he added.

A lawyer who specialises in estate planning and Will writing will be able to advise you on what should and shouldn't be included in your Will and on the most effective way to transfer your assets to minimise any tax liabilities.

Contact us

If you are thinking of writing or updating a Will or carrying out other estate planning activities, then contact Szabo & Associates Solicitors today and speak with one of our specialist solicitors. Call us on (02) 9281-5088 or fill in the contact form to the right of this page.