When we’re talking about estate planning, most people start zoning out if they’re under a certain age. They’ll sigh and think, Estate planning? That’s just for old people…I’m not there yet. This is a form of flawed thinking that can leave you totally unprepared for the unexpected, because estate planning (preparing a will etc.) should be considered by every adult over 18.  Here are a few questions to ask before you toss away the idea of getting your estate in order:

“Everyone’s future is, in reality, an urn full of unknown treasures from which all may draw unguessed prizes.” ~Lord Dunsany

1. Who will take care of the kids? This doesn’t refer to babysitting or short-term care like we face every week the day before date night. If something were to happen to you (the single parent) or you and your spouse, and you have children under the age of eighteen, what would be their living arrangements?  You can’t send them to just anyone, but you don’t want to burden anyone either. It’s a sobering thought, and if you don’t plan it out, the court system will do it for you.  Ouch!
2. Is there anyone left? Most of us plan to leave it all to our closest family and/or friends, such as a spouse, kids, siblings, etc…However, what if everyone dies together? Most people call this something like a “Heaven Forbid” clause, but it has to be addressed – and it can be simply with a tiering structure (no, that’s not crying about it… is a structure that has a number of beneficiaries named in sequence).
3. Who has the power? Called a “Power of Attorney”, it’s important to make sure you address the fact that someone (one or two individuals usually) decides everything on your behalf when you die. This includes all the details not addressed in your will, and it determines who makes sure that your wishes are carried out as set forth in your will. In some cases, it can also dictate who decides if the plug needs to be pulled if you’re on life support and not expected to recover. This is an Enduring Power of Attorney.
4. Where does the money go? When you have superannuation funds, your spouse and/or children do not automatically get the money from them. Make sure that you set up the right kind of death benefit nomination for your superannuation.   A common mistake is that people think that their will controls their super… but that’s not right.
5. Do I need help or can I draft my estate plan myself? This question can be a bit touchy, because some people do not like to let other people know about their finances. That said, it’s crucial to seek help from the experts (Proverbs 15:22)… to an estate planning expert—a lawyer—about your plans to make sure you have everything in order. This can mean the different between a legally-binding plan and one that can be tossed out if challenged in court. Do it right, and make it legal, for your family’s protection and your own peace of mind.  For those DIYers try this website which GMM recommended –  Legal Will.

Still think that estate planning is for grandparents or sick people? According to the Australian Government’s Cancer Australia website, nearly 25% of people who are diagnosed with cancer are younger than 60. In addition, about 25 people die every day from heart attacks in Australia. Most of these are people between the ages of 40 and 70, and 40 is by no means old. Take control of your future, and your family’s future, while you still have a chance. We can’t plan when we’ll pass away, or when a spouse will die, but we can help make their lives (or ours) easier if it does happen.

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