Estate planning. It can sound daunting, complex, and something "for later." But the truth is, it's one of the most thoughtful and empowering things you can do for yourself and your loved ones. To demystify the process, we sat down with Andrew Pacini, a seasoned Estate Planning Lawyer at Hammond Nguyen Turnbull  to answer your most pressing questions.

Q: What exactly is estate planning, and who needs it?

Andrew: That's a great starting point! Estate planning is about making decisions now that determines what happens to your assets and who will care for your loved ones when you're no longer here. It also includes planning for situations when you are still here but are not capable of making your own decisions. This includes making a Will, appointing an enduring guardian to make health related decisions and setting up powers of attorney.

As for who needs it – the answer is everyone! Whether you have considerable assets or not, if you care about where your assets go and who makes important decisions for you if you can't, estate planning is essential. It's not just for the elderly. Young families and individuals should also have plans in place.

Q: What's the difference between a Will and estate planning? Are they the same thing?

Andrew: That's a common misconception. A Will is a crucial part of estate planning, but it's not the whole picture. Your Will outlines how your assets will be distributed after your death whereas there are other documents like Enduring Guardianship and Powers of Attorney that form part of your Estate Planning. 

Estate planning is a broader process that can also involve:

• Powers of Attorney: Appointing someone to make financial decisions on your behalf if you lose capacity.
• Enduring Guardianships: Appointing someone to make medical decisions on your behalf if you lose capacity. 
• Trusts: Legal arrangements that can help manage and distribute assets, potentially offering tax advantages or protecting assets for future generations.
• Superannuation and Life Insurance Nominations: Ensuring these assets go to your intended beneficiaries (often handled separately from the Will but considered in the overall plan).

Q: I keep hearing about DIY Wills. Are they a good option to save money?

Andrew: While DIY Wills might seem appealing due to their lower upfront cost, they can often lead to significant problems down the line. Estate law is complex and varies. A DIY Will might not comply with all legal requirements, could contain ambiguous language leading to disputes, or fail to address specific family situations or assets adequately.

The cost of rectifying a poorly drafted DIY Will after someone has passed away can far outweigh the initial savings. Engaging a lawyer ensures your Will is legally sound, tailored to your specific circumstances, and minimizes the risk of future complications and heartache for your loved ones.

Q: What are some common mistakes people make in estate planning?

Andrew: Unfortunately, we see several recurring issues:

• Procrastination: Putting it off because it feels uncomfortable, but life is unpredictable.
• Using generic templates without understanding them: As mentioned with DIY Wills, these often don't cover individual needs.
• Not updating their plan: Life changes – marriage, divorce, birth of children, significant asset changes – all warrant a review and update of your estate plan. For example, a marriage can cancel out a previous Will you have drafted. 
• Failing to properly witness and sign documents: This can render the documents invalid - so you might as well not have done a Will. 
• Not considering superannuation and life insurance: These often require separate beneficiary nominations.
• Assuming everything automatically goes to their spouse: This isn't always the case, especially in blended families or without a valid Will.
• Not discussing their wishes with their family or executor: Open communication can prevent misunderstandings.
• Not protecting their assets in a way that is consistent with their wishes: This could involve creating trusts to protect assets from former spouses, in laws etc. 

Q: How often should I review my estate plan?

Andrew: As a general rule, you should review your estate plan every 3-5 years, or sooner if there's a significant life event such as those I just mentioned (marriage, divorce, birth/adoption of children, death of a beneficiary or executor, major changes in assets). It's always better to be proactive and ensure your plan still reflects your current wishes and circumstances. 

Q: What's the first step someone should take if they want to start estate planning?

Andrew: The first step is often the hardest – acknowledging the need and deciding to take action. Once you're ready, I recommend:

• Gathering information: Think about your assets (property, investments, superannuation, etc.), your family situation, and who you would want to benefit.
• Considering your wishes: What are your specific goals for your estate? Who do you want to appoint as your executor and guardians (if applicable)?
• Scheduling a consultation with an experienced Estate Planning Lawyer: This allows you to discuss your situation, ask questions, and understand the best options for your needs.

Q: What are some of the benefits of having a comprehensive estate plan in place?

Andrew: The benefits are numerous and far-reaching:

• Peace of mind: Knowing you've taken steps to protect your loved ones and your assets.
• Control over your assets: Ensuring they go to who you intend.
• Protecting your loved ones: Providing for their financial security and well-being.
• Appointing guardians for minor children: Ensuring they are cared for by people you trust.
• Streamlining the administration of your estate: Making the process easier for your executor.
• Potentially minimising taxes: With careful planning, you may be able to reduce estate tax liabilities.
• Avoiding family disputes: Clear and legally sound documents can prevent misunderstandings and conflicts.

Q: Any final thoughts for our readers?

Andrew: Estate planning is not just about what happens after you're gone; it's about providing security and clarity for the people you care about most now. Don't let it remain on your "someday" list. Take the first step, seek professional advice, and gain the peace of mind that comes with knowing you've put your affairs in order. It's one of the most thoughtful gifts you can give your family.



If you have further questions or would like to discuss your estate planning needs, please don't hesitate to contact Hammond Nguyen Turnbull for a confidential consultation.