The good news is that you may not need to find the money or cash your investments to pay this full amount as a lump sum.

When moving into residential aged care, you will be given a choice on how you pay for your accommodation. You can pay the full amount as a lump sum, known as a Refundable Accommodation Deposit (RAD), or pay a Daily Accommodation Payment (DAP), or you can choose a combination.

So, where do interest rates come into it?

If you choose the daily payment option, the amount you pay is calculated by converting the lump sum into a daily fee using a government-set interest rate called the Maximum Permissible Interest Rate (MPIR). When official interest rates increase, this flows through to a higher MPIR which currently sitting at 8.43% per annum – considerably higher than just a few years ago.

The rate is locked in when you enter care (unless you move rooms) but the higher current rates may change affordability and funding decisions for families now looking at care options. A strategy that may have made sense when interest rates were low may no longer be the most cost-effective approach today.

Under the current rules, you also need to take into account the impact of inflation-linked indexation each six months if you choose the daily payment option.

Make it your choice

One of the biggest misconceptions we still encounter is that the aged care provider decides how accommodation must be paid. Providers can set the room price, and some may prefer a lump sum, but the choice is yours.

You have the right to decide whether to pay a lump sum, a daily payment, or a combination option. Most people start with a daily payment and then if they choose, can pay the lump sum (in full or part) at any time after entry.

Because these decisions can have a significant impact on your cash flow, age pension, investments and even the value of your estate, it’s worth taking the time to seek advice before making a commitment.

Every family’s financial situation is different. Understanding your options and developing a strategy that suits your circumstances can help you make the most of your available resources and provide greater peace of mind during what is often a significant life transition.

The right advice won’t change the interest rate, but it can help ensure you’re paying for aged care in the way that’s right for you.

We offer licensed and specialist aged care advice, to help you make the right choices. If you’d like to talk through your situation or understand your next steps, book a conversation with our team to discuss your situation.

The post Why higher interest rates could make aged care more expensive appeared first on Direct Advisers.

If the ballpark numbers are at least remotely close, the amount of assets set to be transferred from one generation to the next in Australia over the coming decades will amount to trillions of dollars.

According to estimates within a 2021 Productivity Commission report, Australians aged 60 and over will transfer $3.5 trillion or an average of about $175 billion per year in wealth in the next two decades. A 2024 report by JBWere Australia had an even higher estimate of $5.4 trillion for likely wealth transfers in Australia over the next 20 years.

The largest part of this great wealth transfer will be between members of the “Baby Boomer” generation (people born just after the end of World War II through to 1964) and their children and other heirs.

It will include family homes, investment properties, superannuation money, direct shares and a wide range of other financial and non-financial assets.

The value of inheritances is not only likely to grow dramatically as wealth levels increase but it will be an increasingly important source of future income and assets for younger generations.

Show me the money

Vanguard’s 2025 How Australia Retires research found that 21% of working-age Australians and 8% of retirees expect to use an inheritance as a source of their retirement income.

Furthermore, 13% of working-age Australians and retirees said the family home would become an inheritance for their beneficiaries or children and they planned to keep it within the family when they died.

The conversation around inheritances interweaves with Australian government research that many Australians are not exhausting their superannuation savings before they die.

The 2023 Intergenerational Report found that most retirees draw down at the legislated minimum drawdown rates.

“This results in many retirees leaving a significant proportion of their balance unspent, for example, a single retiree drawing down at the minimum rates would be expected to still have a quarter of their retirement assets at death,” the report noted.

Treasury estimates in the 2020 Retirement Income Review included projections from Treasury that outstanding superannuation death benefits could increase to just under $130 billion in 2059, assuming there’s no change in how retirees draw down their superannuation balances.

A touchy subject

Australians collectively had around $17.7 trillion in household wealth at 30 June 2025, according to Australian Bureau of Statistics data, including property and other investments, cash deposits, and superannuation.

Meanwhile, the 2025 UBS Global Wealth Report showed we ranked second in the world for median wealth per adult at US$268,424, and fifth for average wealth per adult at US$516,640.

There’s potentially a lot of household money to go around, and a lot to be inherited.

But inheritance planning, unlike succession planning within a business, is an area that’s rarely discussed at the family level.

Most families regard subjects such as death and the future division of wealth as unpleasant and potentially sensitive when multiple heirs are involved.

But there’s a lot to be said for having open discussions within your family about the intended treatment of assets and future inheritances.

Creating a valid will, and specifically documenting how you want your assets to be managed and divided after your death, should be a key step in the inheritance planning process.

Residential real estate and superannuation, which combined make up more than three-quarters of total household assets, are the largest components of most inheritances.

Ensuring that any superannuation you have left over at the time of your death is distributed according to your wishes requires you to complete a binding death benefit nomination form provided by your super fund.

Seek professional advice

It’s important to be aware of any potential tax implications. For example, while superannuation distributed to a surviving spouse or dependent children is generally tax-free, non-dependents (including adult children) may be required to pay tax on amounts they receive.

Those inheriting assets such as property and financial securities may also face tax issues.

Estate planning can be complex. Speak to us about helping you and your intended beneficiaries map out an inheritance framework that also identifies issues such as potential tax liabilities is a prudent step.

To ensure a smooth transfer of inheritance and put the right plan in place for you, contact our team here. 

Source: Vanguard November 2025

This article has been reprinted with the permission of Vanguard Investments Australia Ltd. Copyright Smart Investing™

GENERAL ADVICE WARNING
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) (VIA) is the product issuer and operator of Vanguard Personal Investor. Vanguard Super Pty Ltd (ABN 73 643 614 386 / AFS Licence 526270) (the Trustee) is the trustee and product issuer of Vanguard Super (ABN 27 923 449 966).
The Trustee has contracted with VIA to provide some services for Vanguard Super. Any general advice is provided by VIA. The Trustee and VIA are both wholly owned subsidiaries of The Vanguard Group, Inc (collectively, “Vanguard”).
We have not taken your or your clients’ objectives, financial situation or needs into account when preparing our website content so it may not be applicable to the particular situation you are considering. You should consider your objectives, financial situation or needs, and the disclosure documents for the product before making any investment decision. Before you make any financial decision regarding the product, you should seek professional advice from a suitably qualified adviser. A copy of the Target Market Determinations (TMD) for Vanguard’s financial products can be obtained on our website free of charge, which includes a description of who the financial product is appropriate for. You should refer to the TMD of the product before making any investment decisions. You can access our Investor Directed Portfolio Service (IDPS) Guide, Product Disclosure Statements (PDS), Prospectus and TMD at vanguard.com.au and Vanguard Super SaveSmart and TMD at vanguard.com.au/super or by calling 1300 655 101. Past performance information is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. This website was prepared in good faith and we accept no liability for any errors or omissions.
Important Legal Notice – Offer not to persons outside Australia
The PDS, IDPS Guide or Prospectus does not constitute an offer or invitation in any jurisdiction other than in Australia. Applications from outside Australia will not be accepted. For the avoidance of doubt, these products are not intended to be sold to US Persons as defined under Regulation S of the US federal securities laws.
© 2025 Vanguard Investments Australia Ltd. All rights reserved.

The post Preparing for an inheritance appeared first on Direct Advisers.

Estate planning involves developing a strategy to deal with your assets after you die – the legal instruments and structures, such as a will, you put in place to transfer your assets in the event of death.

Tax is a major consideration in estate planning, and strong governance relating to the tax aspects of estate administration can help manage the risks.

Ensure you or your staff have sufficient knowledge and skills to meet your responsibilities. Be prepared to seek assistance from external advisers on more complex tax issues.

Developing an effective strategy

Estate planning may be considered as part of your overall succession plan for your business. You may need to seek specialist advice on the most appropriate estate planning strategy.

Have a process in place to periodically review your strategy in conjunction with your advisers, including your legal, tax, superannuation and financial advisers.

Beware of schemes that claim to have estate planning purposes but are merely tax avoidance arrangements. An effective tax governance framework includes processes for evaluating various arrangements and the tax risks involved.

Preparing a valid will

If someone dies without a valid will, this is called ‘dying intestate’, and their assets are distributed according to the inheritance laws of the states and territories of Australia. In this case there is a risk that the undocumented intentions of the deceased person in relation to their estate may not be fully acted on.

Depending on the marginal tax rates of different beneficiaries, intestacy could potentially lead to an overall imbalance in the distribution of an estate due to higher rates of tax payable by some beneficiaries.

Planning ahead can avoid this result. When preparing a will, the will maker and their advisers can assess opportunities to manage the tax implications for beneficiaries.

Administering a deceased estate

As executor of a deceased estate, you need to understand your tax obligations, including:

• notifying us that you’ve been appointed as executor
• lodging a final return, and any outstanding prior-year returns, for the deceased person
• lodging any trust tax returns for the deceased estate
• providing beneficiaries with the information they need to include distributions in their own returns and, in certain cases, paying tax on their behalf
• paying tax on the income of the deceased estate.

Testamentary trusts

A testamentary trust is a trust established under a valid will, but it’s not the same trust as the deceased estate. A testamentary trust functions in a similar way to a discretionary family trust, with certain provisions of the will operating like a trust deed.

Like any trust, a trustee of a well-governed testamentary trust will:

• properly understand the tax profile of potential beneficiaries in the light of intended tax outcomes
• lodge a tax return for every financial year that it is in existence
• maintain proper trust account records (such as trustee resolutions, detailed financial statements and reconciliations), especially where a trustee is streaming capital gains or franked dividends
• fully document capital gains tax events, cost bases, and rollovers and other concessions claimed.

Depending on who is appointed as the trustee and appointor of the testamentary trust, there may need to be a high level of co-operation between family members to ensure that necessary tax, financial and other information is shared for the trust to operate effectively.

A well governed testamentary trust will ensure that tax outcomes are achieved and, more importantly, complex family or legal disputes can be prevented.

Capital gains tax

Special capital gains tax (CGT) rules apply to the transfer of any CGT assets from a deceased estate. You should seek specialist advice in relation to the CGT implications of passing on or disposing of the assets of a deceased estate.

Keep complete records of CGT assets. These will be needed by the executor and any beneficiary who receives a CGT asset from the estate.

Superannuation and death benefits

Ensure you understand the tax issues around estate planning and superannuation.

For example, the tax impact of distributions made under a binding death nomination is usually one of the major considerations in estate planning.

Assets held by a person in their superannuation fund are not automatically included in their estate. In the absence of a binding death benefit nomination, the trustee has the discretion to pay the benefits of the deceased to any of their superannuation dependents instead of the estate (rather than according to the will, which only deals with the estate assets), and of deferring tax consequences. Where a nomination is in place, the benefits will be paid to the nominated beneficiaries.

It’s good practice to regularly review the need for any nominations to ensure your superannuation benefits will be passed on to your nominated beneficiaries, and that the nominations are valid and effective. Seek advice on the tax implications.

Example: Reviewing your strategy as circumstances change

As part of your estate planning strategy, you make a binding death nomination to provide for your under-age children who would receive the benefit tax free. You get advice to ensure that the nomination is valid and effective.

You provide for your older children, who would be taxed on receipt of superannuation death benefits, in your will.

After some years, when all of your children are older, you review your strategy and make a new nomination that better suits your family’s tax situation.

Because your personal circumstances change from time to time, it’s important that you regularly review the estate planning and income tax consequences when it comes to the distribution of your superannuation assets to your beneficiaries. Areas that warrant attention include:

• the distinction between a ‘superannuation dependent’ and a ‘tax dependent’
• interaction with testamentary trusts
• effecting the reversion of a pension to spouse
• realising fund assets for payment to beneficiaries

Our team is here and ready to help you plan your estate. Contact us here.

Source: ato.gov.au
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/newsroom/smallbusiness/ . Important: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. 
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The post Estate Planning appeared first on Direct Advisers.

For many Australians, superannuation is their greatest asset outside the family home. 

But do you have a plan for who will receive your super if something happens to you? 

The laws around super death benefits are complex, with strict rules about who can receive these benefits. So, it’s crucial to plan ahead. 

One approach that can help provide certainty is making a binding death benefit nomination, but even then, there are some important things to consider. 

What happens to your superannuation when you die? 

Upon your death, your super and any life insurance held in your fund must be paid out to a beneficiary, according to super law and your fund’s trust deed. 

Importantly, the rules for who receives superannuation are different from other assets, like property and shares held outside of superannuation, and superannuation does not automatically form part of your estate. Even if you have written instructions in your will about your wishes, the rules about beneficiaries in super law take precedence. 

That’s why choosing a beneficiary is such an important decision. 

Who can you nominate as your beneficiary? 

The trustee of your super fund can usually only pay a death benefit to one of your “dependants”, as defined by super law. 

This includes: 

• Your spouse - both married and de facto partners (unmarried but living together as a couple). 

• Your children - including adopted children, stepchildren, children of your spouse or other legally recognised children. 

• Your ‘interdependents’ - someone you live with in a close personal relationship, where one or both of you provide financial, domestic and personal care support to the other. 

• Your legal personal representative - the executor of your will or administrator of your estate. They are not considered a dependant but can still be nominated as a beneficiary. 

The dependency rules are complex and very important in the context of administrating death benefits, and there are also tax implications.  

That’s why it’s a good idea to seek advice from us or estates lawyer about your personal circumstances. 

What happens if you don’t nominate a beneficiary? 

If you don’t nominate a beneficiary with your super fund, the fund’s trustee will decide who receives your death benefit based on superannuation laws and the fund’s trust deed.  

This could result in your super being given to someone you might not have intended. 

In these situations, the trustee will first try to pay the benefit to your dependants and/or a legal personal representative. If you have neither, the trustee will pay the death benefit to another person they determine. 

How binding death benefit nominations can help 

To avoid unintended consequences, you can lodge a binding death benefit nomination with your super fund.  

A binding nomination is legally ‘binding’ on the super fund’s trustee. As long as your nomination is valid at the date of your death, the trustee will generally be bound to follow your instructions. 

Binding nominations usually expire after three years. But some super funds offer non-lapsing binding nominations which don’t expire (but which you can still change or revoke if you want to at any time). 

You can also make a binding death benefit nomination if you have a self-managed super fund (SMSF), providing it’s allowed in the trust deed. 

What to know about non-binding death benefit nominations 

Many funds also allow members to record non-binding nominations.  

If you have a non-binding nomination, the trustee will take your preferences into account when deciding how to distribute your benefit in accordance with superannuation law. 

However, it doesn’t guarantee that your death benefit will be paid exactly according to your wishes.  

For example, the trustee may change the proportions or may include other dependants not named in your nomination. 

Why it’s important to regularly review your super beneficiaries 

If you have a binding death benefit nomination, it’s important to regularly review it to ensure it reflects your current wishes and circumstances.  

A good rule of thumb is to check your nomination of beneficiaries whenever your personal circumstances change. 

For example, if you get married, register a relationship, get divorced, have children, change an interdependency relationship, start a new interdependency relationship, or if one of your nominated beneficiaries dies. 

Death benefit nominations are a complex topic, so it’s a good idea to seek professional advice. 

For more information, including how to make a binding death benefit nomination, give us a call. 

Source: Vanguard 

This article has been reprinted with the permission of Vanguard Investments Australia Ltd. Copyright Smart Investing™ 

GENERAL ADVICE WARNING 
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) (VIA) is the product issuer and operator of Vanguard Personal Investor. Vanguard Super Pty Ltd (ABN 73 643 614 386 / AFS Licence 526270) (the Trustee) is the trustee and product issuer of Vanguard Super (ABN 27 923 449 966). 
The Trustee has contracted with VIA to provide some services for Vanguard Super. Any general advice is provided by VIA. The Trustee and VIA are both wholly owned subsidiaries of The Vanguard Group, Inc (collectively, “Vanguard”). 
We have not taken your or your clients’ objectives, financial situation or needs into account when preparing our website content so it may not be applicable to the particular situation you are considering. You should consider your objectives, financial situation or needs, and the disclosure documents for the product before making any investment decision. Before you make any financial decision regarding the product, you should seek professional advice from a suitably qualified adviser. A copy of the Target Market Determinations (TMD) for Vanguard’s financial products can be obtained on our website free of charge, which includes a description of who the financial product is appropriate for. You should refer to the TMD of the product before making any investment decisions. You can access our Investor Directed Portfolio Service (IDPS) Guide, Product Disclosure Statements (PDS), Prospectus and TMD at vanguard.com.au and Vanguard Super SaveSmart and TMD at vanguard.com.au/super or by calling 1300 655 101. Past performance information is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. This website was prepared in good faith and we accept no liability for any errors or omissions. 
Important Legal Notice – Offer not to persons outside Australia 
The PDS, IDPS Guide or Prospectus does not constitute an offer or invitation in any jurisdiction other than in Australia. Applications from outside Australia will not be accepted. For the avoidance of doubt, these products are not intended to be sold to US Persons as defined under Regulation S of the US federal securities laws. 
© 2025 Vanguard Investments Australia Ltd. All rights reserved. 

The post Do you know who gets your super when you die?  appeared first on Direct Advisers.

It’s a number that’s predicted to grow more rapidly over the coming 20 years to $5.4 trillion, the report finds. 

Managing this flow of wealth to family groups, often complicated by divorce and remarriage as well as children from previous marriages, can lead to disputes and legal challenges if not carefully handled. 

Legal firms agree that the number of challenges to wills has been increasing each year with adult children most likely to take action. One firm estimates more than 60 per cent of claims are brought by adult children and around 20 per cent by partners or ex-partners.ⁱⁱ 

Yet, many still do not have wills. 

In the latest research available, the Australian Law Reform Commission found that almost 40 per cent of adult Australians did not have a will although, this figure declined to 7 per cent for those older over 70.ⁱⁱⁱ 

If you die intestate in Australia, your estate is distributed according to state and territory laws, and the laws vary slightly between each state and territory. Generally, the estate goes to the next of kin starting with the surviving spouse or partner followed by children, parents, siblings and then other relatives. If no relatives can be found, the estate may go to the government. 

So, if it is important to you to have a say in how your assets will be distributed, a will is a must. 

Meanwhile, for those in a new partnership but have children from a previous marriage, a binding financial agreement can be a useful way of protecting your partner’s interests if something happens to you. 

It’s a legally enforceable contract that details how assets, liabilities and responsibilities will be divided if you separate, divorce or one partner dies. 

Designing your transfer of wealth 

Distributing your wealth now or later can depend on the family dynamics, any businesses you may own and whether you have a passion for creating a legacy – donating to a charity, for example. Alternatively, you may prefer to spend it on yourself and your partner to enjoy your later years. 

The housing crisis and the emergence of the ‘bank of mum and dad’ has increasingly seen wealth transfer happening while the benefactor is still alive. You may wish to help your children or grandchildren to get a foot onto the property ladder, contribute to their superannuation, or pay their school fees or student loans. But it’s crucial to obtain professional advice to understand any consequences of giving lump sums, particularly those receiving government entitlements, as they could potentially be impacted.  

Another alternative is testamentary trust. This is commonly used to provide financial security for beneficiaries, such as family members or loved ones. It is used to manage and distribute assets according to specific instructions laid out in the will. 

It can be specifically written and incorporated in your will and takes effect when you pass away. It is administered by a trustee, who you would also name in your will. The trustee would take legal control over the trust assets and is responsible for the management and distribution of the assets to the beneficiaries, based on the instructions in the trust. 

This strategy could also potentially minimise any tax liabilities. However, there are a lot of things you need to consider when deciding whether or not a testamentary trust is right for you. 

Some might prefer to establish or contribute to a charitable foundation as a way of building a family legacy. It’s a move that allows you to have some say over how your hard-earned wealth is distributed and could involve family members to allow them to build knowledge and experience in philanthropy. 

Most importantly, creating a family legacy relies primarily on the strength of family relationships. Any disputes will more than likely be magnified after a death and some relationships may be strained, so it may be helpful to discuss your intentions with family members and any other beneficiaries. Be clear about your plans and don’t ignore negative reactions. 

Getting your affairs in order 

After all, wealth transfer isn’t just about finances – it’s about securing family harmony and ensuring your legacy is preserved according to your wishes. Taking the time to plan, communicate openly with loved ones, and seek professional guidance can make all the difference. 

To ensure a smooth transfer of your wealth and put the right plan in place for you, contact our team here. 

i Bequest Report | JBWere 

ii The numbers don’t lie | Solomon Hollet Lawyers 

iii Wills | ALRC 

The post Legacy or liability? Planning a smooth wealth transfer  appeared first on Direct Advisers.

Estate plans

An estate plan records what you want done with your assets after your death. It can include documents such as:

• your will
• a testamentary trust (as part of your will)
• superannuation binding nominations

It also covers how you want to be cared for — medically and financially — if you can no longer make your own decisions. This part of your estate plan may be in documents such as:

• any powers of attorney
• a power of guardianship (giving someone the right to choose where you live and to make decisions about your medical care)
• an advance healthcare directive (your needs, values and preferences for your future care)

The documents you choose will depend on your situation and what you’re comfortable to trust others with. Get legal advice if you’re not sure.

You must be over 18 and mentally competent when you draw up your estate plan.

Your will

A will is a legal document stating what you want to happen to your assets when you die. It is part (but not all) of your estate plan.

Everyone over the age of 18 should have a will.  

Your will can cover things like:

• how you want your assets shared
• who will look after your children if they’re still young
• any trusts you want to set up
• how much money you’d like to give to charities
• plans for your funeral

Smart Tip: It’s important to have an up to date will. If you die without one, the law decides who will get your assets — and this may not be who you wanted.

Making your will

You can get your will written by a solicitor (for a fee) or by a Public Trustee.

A Public Trustee may not charge if you:

• are a pensioner or aged over 60, or
• nominate them to carry out the instructions in your will (that is, to be your executor)

The rules vary, so visit the Public Trustee office website for your state.

• Australian Capital Territory public trustee and guardian
• New South Wales trustee and guardian
• Northern Territory public trustee
• Queensland public trustee
• South Australia public trustee
• Tasmania public trustee
• Victoria state trustee
• Western Australia public trustee

Here are some low-cost alternatives to Public Trustees:

• Community wills days: The Salvation Army offers low-cost simple will preparation, provided by local solicitors as a community service. To join the waiting list for the next event in your state, see community wills days on the Salvos website.
• Will kits: CHOICE has a helpful article about will kits, DIY will kit review. They look at the pros and cons of four will kits, free or low-cost. They also give tips on drafting your will, and when to consider getting more legal advice.

If you use an online will kit, get it checked by a solicitor or Public Trustee. They can make sure it’s been done properly. If your will isn’t done properly, it will be invalid.

Make sure you put your will in a safe place and tell someone close to you where it is.

Updating your will

It’s important to update your will as your situation changes — for example, if you:

• get married
• divorce or separate
• have children or grandchildren
• have a significant financial change
• lose your spouse (or someone else who is named in your will) through death

Super and your will

A binding nomination directs who your super fund trustee gives your super benefit to when you die. If you don’t nominate someone, the super fund trustee will decide who your money goes to.

Family trusts and your will

If you have a family trust, it continues after your death. The trust determines who gets your assets, even if your will says something different.

Testamentary trusts

A testamentary trust is a trust that is written in your will. It takes effect when you die, and it’s administered by a trustee, who you usually name in your will.

The trustee looks after your assets until your beneficiaries can get them. This is set out in your will, and is either when:

• a child reaches a certain age, or
• a beneficiary achieves a specific goal (for example, they get married or earn a particular qualification)

You may want to consider setting up a trust if your beneficiaries:

• are minors (under 18), or
• have diminished mental capacity, or
• may not use their inheritance well

Another reason to consider a trust is to avoid family assets being:

• split as part of a divorce settlement, or
• part of bankruptcy proceedings

Powers of attorney

A power of attorney is a document where you give someone else the legal right to look after your affairs for you. It’s important to nominate someone that is trustworthy, financially responsible, and likely to be around when you need them.

Each state and territory have different rules for setting up a power of attorney. 

There are different types of powers of attorney:

General power of attorney

This allows someone to make financial and legal decisions for you. It’s usually for a specified time — for example, if you’re overseas and can’t manage your affairs at home.

If you become unable to make decisions yourself, a general power of attorney becomes invalid.

Enduring power of attorney

An enduring power of attorney (or EPA) allows someone to make financial and legal decisions for you. If you become unable to make decisions yourself, an enduring power of attorney will still be valid.

Medical power of attorney

This allows someone to make medical decisions for you if you ever become unable to do so yourself. It doesn’t allow them to make other kinds of decisions.

Legal and financial housekeeping

It will help your family and your executor if you list all the documents you have and where they’re kept.

As well as the documents talked about above, other key documents to keep handy are:

• birth certificate
• marriage certificate
• life insurance
• medical insurance
• Medicare card
• pensioner concession card
• house deeds
• home and contents insurance
• deeds and insurance policies for any other real estate you own
• bank account details
• superannuation papers
• investment documents (securities, share certificates, bonds)
• prepaid funeral plans

For help and advice, contact our team here.

Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/living-in-retirement/wills-and-powers-of-attorney
Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.
Important
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The post Wills and powers of attorney appeared first on Direct Advisers.

A will is a legal document that outlines how your assets—such as property, savings, or possessions—should be distributed. Without one, your estate will be divided according to state laws, which may not reflect your personal wishes or the needs of your family.

Who Needs a Will?

The short answer is: almost everyone. Whether you’re single, have a family, or are entering retirement, having an up-to-date will provides clarity and peace of mind. Life events such as marriage, divorce, having children, or receiving an inheritance are all times to review your will and ensure it reflects your current intentions.

How to Create a Will

You can draft a simple will using a DIY kit or online service, but for more complex situations, it’s best to seek professional advice. A lawyer or estate planning specialist can ensure your will is legally valid and tailored to your specific circumstances. You’ll also want to nominate a trusted executor—someone who can carry out your wishes and manage the administration of your estate.

Gayle’s Story: Planning Ahead for Peace of Mind

When Gayle’s husband passed away, she suddenly found herself managing their financial affairs alone. It was a difficult time, filled with paperwork, decision-making, and emotional strain. As she navigated the transition, Gayle realised how important it was to have her own estate plans in place—not just for herself, but for her children and grandchildren.

With guidance from Direct Advisers, Gayle reviewed her financial position, updated her will, and put other legal documents such as enduring power of attorney in place. She also took steps to make things easier for her family in the future, ensuring her intentions were clearly documented and understood. Today, Gayle feels confident and relieved knowing she’s done what she can to protect her loved ones and honour her wishes.

You can read more about Gayle’s story here.

Beyond a Will: Consider Life Insurance

While a will ensures your assets are passed on, it may not be enough to financially support your family in the short term. Life insurance can help fill that gap—covering funeral costs, outstanding debts, or simply helping your loved ones maintain financial stability.

We’re Here to Help

At Direct Advisers, we believe planning for the future is one of the most caring things you can do for your family. If you’d like to put a will in place or review your current estate plan, our team is here to guide you through the process with clarity and care.

Reach out to our team here.

The post Peace of Mind Starts with a Will: Why Planning Ahead Matters appeared first on Direct Advisers.

Your Will gives you a say in how you want your possessions and investments to be distributed. Importantly, you should also establish enduring powers of attorney and guardianship as well as a medical treatment decision maker and/or advance care directive in case you are unable to handle your own affairs towards the end of your life.

At the heart of your estate planning is a valid and up-to-date Will that has been signed by two witnesses. Just one witness may mean your Will is invalid.

You must nominate an executor who carries out your wishes. This can be a family member, a friend, a solicitor or the state trustee or guardian.

Keep in mind that an executor’s role can be a laborious one particularly if the Will is contested, so that might affect who you choose.

Around 50 per cent of Wills are now contested in Australia and some three-quarters of contested Wills result in a settlement.ⁱ

The role of the executor also includes locating the Will, organising the funeral, providing death notifications to relevant parties and applying for probate.

Intestate issues

Writing a Will can be a difficult task for many. It is estimated that around 60 per cent of Australians do not have a valid Will.ⁱⁱ

While that’s understandable – it’s very easy to put off thinking about your own demise, and some don’t believe they have enough assets to warrant writing a Will – not having one can be very problematic.

If you don’t have a valid Will, then you are deemed to have died intestate, and the proceeds of your life will be distributed according to a statutory order which varies slightly between states.

The standard distribution format for the proceeds of an estate is firstly to the surviving spouse. If, however, you have children from an earlier marriage, then the proceeds may be split with the children.

Is probate necessary?

Assuming there is a valid Will in place, then in certain circumstances probate needs to be granted by the Supreme Court. Probate rules differ from state to state although, generally, if there are assets solely in the name of the deceased that amount to more than $50,000, then probate is often necessary.

Probate is a court order that confirms the Will is valid and that the executors mentioned in the Will have the right to administer the estate.

When it comes to the family home, if it’s owned as ‘joint tenants’ between spouses then on death your share automatically transfers to your surviving spouse. It does not form part of the estate.

However, if the house is only in your name or owned as ‘tenants in common’, then probate may need to be granted. This is a process which generally takes about four weeks.

Unless you have specific reasons for choosing tenants in common for ownership, it may be worth investigating a switch to joint tenants to avoid any issues with probate.

Having a probate is favourable if there is a refund on an accommodation bond from an aged care facility.

Rights of beneficiaries

Bear in mind that beneficiaries of Wills have certain rights. These include the right to be informed of the Will when they are a beneficiary. They can also expect to hear about any potential delays.

You are also entitled to contest or challenge the Will and to know if other parties have contested the Will.

If you want to have a final say in how your estate is dealt with, contact our team here. 

i Success rate of contesting a will | Will & Estate Lawyers

ii If you don’t, who will? 12 million Australians have no estate plans | Finder

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