Common myths and misconceptions in Wills and estate planning

There are numerous myths and misconceptions about Wills and estate planning, often propagated by TV shows and movies. This can lead to misunderstandings when people undertake their own estate planning or handle a deceased loved one's estate.

Here are five common myths and misconceptions:

1. If you die without a Will, all your assets don't automatically go to the government. They're distributed according to the rules of intestacy.
2. Even if you have few assets, having a Will can prevent potential difficulties and disputes for your surviving family and friends.
3. Wills and estate planning aren't just for older people. Unfortunate events can occur at any age, and having a Will and Enduring Powers of Attorney can simplify matters for your loved ones.
4. You can't nominate just anyone to receive your superannuation benefits upon your death. Legislation restricts the categories of persons who can receive your superannuation member benefits.
5. While a Will can be challenged, it isn't discarded. It's still crucial to have a Will to ensure your wishes are followed.

The truths to these misconceptions are as follows:

1. If you die without leaving a Will then all of your assets pass to the government: The truth is, if a person dies without a Will, they are said to have died 'intestate'. In such cases, the distribution of the person's estate is governed by the rules of intestacy, which vary by state or territory. These rules typically distribute the deceased's assets among their closest relatives, such as their spouse, children, or parents. The government (or the Crown) only receives the assets if there are no eligible relatives.
2. You don’t need a Will if you have very little in the way of assets: Regardless of the size of your estate, having a Will is important. It allows you to decide who will receive your assets after your death. Without a Will, these decisions will be made according to the laws of intestacy, which may not align with your wishes. Moreover, having a Will can prevent potential disputes among your surviving family and friends.
3. Wills and estate planning is something that only older people need to worry about: The truth is, everyone, regardless of age, should consider estate planning. Unfortunate events, such as accidents or illnesses, can happen at any age. Having a Will and Enduring Powers of Attorney ensures that your affairs will be handled according to your wishes if you become unable to manage them yourself.
4. You can nominate whomever you wish to receive your superannuation benefits if you die: In reality, legislation restricts who can receive your superannuation benefits upon your death. These individuals, known as superannuation dependants, typically include your spouse or de facto partner, your children, any person financially dependent on you at the time of your death, any person in an 'interdependent relationship' with you at the time of your death, and your legal personal representative.
5. There’s no point in leaving a Will because anybody can challenge it: While it's true that Wills can be challenged, having a Will is still crucial. A Will can only be contested under certain conditions, such as if it wasn't properly executed or if the deceased lacked testamentary capacity. Even if a claim is made against the estate, the Will itself is not disregarded. Instead, the court considers the claim alongside the deceased's wishes as expressed in the Will.

It's essential to carefully consider and execute your estate planning with the advice of experienced professionals.