Most people spend years building their wealth, paying off their home, contributing to super and making plans for retirement. Far fewer spend time thinking about what happens if they are suddenly no longer around to manage it all.
It is not an easy conversation to have, but it is one of the most important.
While you cannot control every outcome, you can make things considerably easier for the people you leave behind by having your financial planning in order and your wishes clearly documented.
A Will is only part of the picture
Many Australians assume that once they have written a Will, everything is taken care of. A Will is certainly important, but it does not automatically give your family or executor a complete picture of your financial plan.
They may still need to identify bank accounts, investment portfolios, superannuation accounts, insurance policies, debts, pension arrangements and ongoing expenses. If this information is scattered across paperwork, emails or online accounts, tracking it down can take considerable time and add stress to an already emotional period.
It is also worth knowing that some assets do not automatically form part of your estate. Superannuation, for example, is generally dealt with under the rules of your super fund and any valid beneficiary nominations you have made.
The hidden challenges families often face
In many households, one person naturally takes responsibility for the family’s finances. They know where the investments are held, which bills are on direct debit, how much insurance is in place and who to call when something needs attention.
If that person dies unexpectedly, their partner or children can find themselves trying to piece everything together at the worst possible time. They may need to locate financial accounts and documents, understand investment strategies, manage pension or retirement income payments, identify insurance policies and make claims, and meet ongoing household expenses while the estate is being administered, all while dealing with grief.
Why beneficiary nominations deserve regular attention
One of the most commonly overlooked parts of financial planning is keeping beneficiary nominations current. Life changes. People marry, separate, have children, lose family members or enter new relationships. A nomination made years ago may no longer reflect your wishes. Depending on your super fund, a binding nomination may also lapse after a set period unless it is renewed.
Keeping nominations up to date can reduce uncertainty and help ensure death benefits are paid to the right people without unnecessary delay.
What your executor actually needs
Being named as an executor is a significant responsibility. Executors may need to work with solicitors, accountants, financial institutions, super funds and government agencies, all while making sure the deceased person’s wishes are carried out correctly.
One of the most valuable things you can leave behind is a clear financial plan. This means keeping an up-to-date record of your bank accounts and investments, superannuation and insurance details, loans and mortgage information, regular direct debits and subscriptions, the location of important legal documents, and contact details for your solicitor, accountant and financial adviser. Having this information in one place, and making sure the right people know where to find it, can save your family considerable time and stress.
Financial planning does not stop when someone passes away
Many people assume financial planning ends at death. When someone dies, it is often the point at which their family needs the most support.
A surviving spouse may suddenly find themselves responsible for investment decisions they have never had to make before. Adult children may be helping ageing parents manage their affairs while juggling their own financial commitments. Executors may need help understanding how different assets fit together and what steps need to be taken.
A financial planner can work alongside your solicitor and accountant to help explain the financial position, assist with investment and cash flow decisions, and support surviving family members as they adjust to their new circumstances. Rather than facing major financial decisions alone and under pressure, families can get the guidance they need to make considered choices.
Planning ahead gives your family clarity
Keeping your financial affairs organised, reviewing beneficiary nominations regularly, maintaining an up-to-date Will and making sure your family knows where to find important information can make an enormous difference if the unexpected happens.
At RFS Advice, we work with clients at every stage of life to build financial plans that hold up when they are needed most, including what happens when wealth is passed to the next generation. We also work with surviving spouses and families to help them navigate major financial planning decisions during difficult times.
Contact RFS Advice to speak with one of our experienced Gold Coast financial advisers about making sure your retirement planning and broader financial affairs are in order – and that a dedicated financial planner is in your corner when it matters most.
Frequently asked questions
Not always. Superannuation is generally held in trust by your super fund and distributed according to superannuation law, your beneficiary nominations and the fund’s rules. Your Will may not determine who receives your super balance.
As a general guide, review them every few years and after any major life event such as marriage, separation, the birth of a child or the death of a nominated beneficiary.
Your family or executor should be able to locate your Will, bank account details, investment and superannuation information, insurance policies, details of any debts and the contact details of your professional advisers.
Yes. While legal matters are handled by your solicitor and the executor administers the estate, a financial planner can help surviving family members understand investments, retirement planning, cash flow and longer-term financial decisions.
Once the immediate practical matters have been addressed, your executor or family should locate your Will and contact your solicitor and financial planning professionals. Having advisers involved early can help them understand your financial position and what needs to be done.
General advice warning:
The information and any advice provided in this article has been prepared without taking into account your objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things.
