Glossary of Key Will Terms

Before creating your will, it’s important to understand key terms

The person who makes the will.

The person(s) receiving assets from the will.

The total property and assets you own.

(Pronounced ex-e-kew-tor) The person or organisation ensuring the terms of the will are followed.
What remains of your estate after debts and specific gifts are distributed.

Why, How, and When to Make a Will

Making a will is essential to ensure that your estate is managed as per your instructions after you pass away. Without a will, your assets may be distributed according to legislation, which could differ from your wishes. It is especially important if you have specific bequests or underage children. A will can be made at any time after turning 18, and it’s a vital step for planning your legacy.

Testamentary Capacity

You must be over 18, understand the implications of a will, know the extent of your estate, and be free of mental illness that could affect your judgment.

List of Assets

Include property, bank accounts, investments, and superannuation.

Beneficiaries

Name those who will receive your assets, along with their addresses.

Guardian for Children

If you have children under 18, designate a guardian.

Executor

Choose a responsible person or organization (like NSW Trustee and Guardian) to manage the distribution of your estate.

Specific Gifts

Detail personal items or money that you wish to give to particular individuals or organizations.

Funeral Arrangements

Include details if you have pre-paid arrangements.

Signatures

A will must be signed by you and two or more witnesses, but beneficiaries shouldn’t witness the document to avoid affecting their entitlement.

Residue

This refers to what remains after all gifts have been distributed. Clarify who should receive the residue of your estate.

Substitute Executor

It’s recommended to name an alternate executor in case your original choice cannot perform their duties.

Keep it Simple

Avoid complex legal jargon. For instance, instead of “I hereby bequeath the entirety of my estate including but not limited to…,” keep it straightforward: “I give my property at [address] to my son, [Name, DOB].” A simple, clear will is easier to follow and less likely to cause misunderstandings.

Key Considerations

  • Age of Beneficiaries: Specify when your underage children will receive their inheritance, for example, at 18 or 21.
  • DIY Kits vs. Legal Advice: While DIY kits exist, it’s advisable to consult a legal expert. A properly drafted will ensures all your wishes are executed, avoiding potential legal challenges.

Conclusion

Creating a will is a critical step in securing your legacy and ensuring your loved ones are provided for according to your wishes. Make sure your will is simple, clear, and legally sound to avoid future disputes. Regularly review and update it to reflect changes in your life circumstances.