As the year winds down, life often becomes a whirlwind of travel plans, holidays, and festive celebrations, especially for young adults. In the midst of this busy season, creating a Will may not seem like a priority, but it is an essential step that should not be overlooked. However, if you (or someone you know) don’t have one, now is the perfect time to get it sorted. Unexpected events can happen, and without a Will, your loved ones—especially your parents—could be left dealing with a legal mess, including unresolved debts, superannuation, and disputes over your estate. Taking this simple step ensures your affairs are in order, giving you and your family peace of mind during the busy holiday period.
Estate planning for young adults
It is wise to consider creating a Will and other estate planning documents as soon as you turn 18 or start acquiring assets. Young people often overlook the structure of their assets, including superannuation, which is not automatically covered by a Will.
Many young, healthy individuals do not think about creating a Will but dying without one can cause complications for your loved ones.
What Is a Will and Why Do You Need One?
A Will is a legally binding document that outlines how your assets—such as property, vehicles, savings, and personal belongings—are to be managed and distributed after your death. Beyond asset distribution, a Will can also designate guardians for children and outline funeral arrangements.
Creating a Will becomes especially important once you start accumulating assets or reach adulthood. Without one, the law dictates how your estate is distributed, which can lead to delays, conflicts, and unintended outcomes.
Key Considerations for Young Adults
Many young adults underestimate the value of their assets. For instance, superannuation (retirement savings) often accumulates early in one’s career but is not directly governed by a Will. Instead, it requires a separate binding death benefit nomination through your superannuation fund to specify beneficiaries.
Additionally, any debts, including personal loans, credit cards, or car loans, must be settled from your estate before beneficiaries receive their inheritance.
Attention Parents – help get your young adult child sorted with a Will
Many young people assume that estate planning is only for older generations or those with significant wealth, but having a Will is a vital safeguard for anyone. This is where parents can play a key role, guiding and encouraging their adult children to take this step. By explaining the importance of resolving potential legal complications—such as managing debts, distributing assets, or avoiding disputes—parents can help their children see that creating a Will isn’t just practical but also an act of responsibility and care.
Parents can play a crucial role in encouraging their adult children to take this step by highlighting the practical benefits. For example, they can explain how a Will ensures that debts are handled properly, prevents disputes over superannuation or other assets, and protects sentimental belongings from being mismanaged.
They might also point out that without a Will, the law determines who receives their estate, which might not align with their wishes. By framing it as a simple yet impactful way to take control of their future and avoid leaving loved ones in a difficult position, parents can help their children understand the importance of creating a Will—before they head off on their holiday adventures.
Superannuation: A Special Consideration
Superannuation is a significant part of many Australians’ wealth. However, its distribution is often misunderstood. If no binding death benefit nomination is made, the superannuation fund’s trustee decides how the benefits are distributed. To avoid this uncertainty, you should ensure your nomination is current and valid, as most expire after three years.
Key Considerations for Young People Preparing a Will
1. List All Your Assets
- Include physical assets like vehicles, electronics, or jewellery.
- Do not forget intangible assets like bank accounts, investments, and intellectual property.
- Don’t forget cryptocurrency!
2. Superannuation
- Superannuation is typically not covered by a Will. You will need a binding death benefit nomination through your super fund to direct who receives these funds.
3. Identify Your Debts
- Consider personal loans, credit cards, and other liabilities. Debts must be settled before your beneficiaries receive anything.
4. Choose Beneficiaries
- Decide who will inherit your assets. This could include family, friends, or charities.
5. Appoint an Executor
- Select someone you trust to manage your estate, settle debts, and distribute assets according to your Will.
6. Consider Guardianship for Dependents
- If you have children or pets, specify who will take care of them in your absence, and consider if it is appropriate to leave a gift to that person to assist them.
7. Think About Digital Assets
- Include instructions for accessing your online accounts, social media profiles, and digital files. Maybe you have cryptocurrency or NFTs (non-fungible tokens).
8. Discuss Your Plans
- Have conversations with your chosen executor and beneficiaries to ensure they understand your wishes.
9. Update Regularly
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- Review your will every 3–5 years or after major life events like marriage, relationship changes, or having children. In Australia, marriage and divorce automatically revokes a prior Will.
10. Store the Will Safely
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- Keep the original Will in a secure location, such as a lawyer’s office or a safe custody facility, and let your executor know where it is stored.
- You may want to let your parents know where the Will is stored.
Estate planning is a crucial yet often overlooked aspect of life, especially for young and healthy individuals. A comprehensive estate plan, starting with a Will, ensures that your assets are distributed according to your wishes and reduces potential disputes among loved ones.
Now is the perfect time to start the conversation, plan ahead, and ensure everyone can enjoy the holiday season with peace of mind.
Get in contact with Lynn and Brown Lawyers before the end of the year to speak with one of our Wills and Estates lawyers about creating a Will that is legally sound and to ensure all details are correctly documented.
About the Author: Hannah is a graduate of both the University of Western Australia and Notre Dame University, having completed a Bachelor of Arts (major in ‘Law and Society’’ and minors in History and Psychology) in 2016 and a Bachelor of Laws in 2018.
