Creating a will is a crucial step in ensuring that your estate is distributed according to your wishes after your death. With the rise of online will services, more Australians are now opting for this convenient and cost-effective method to create their wills. However, many people wonder if online wills can handle complex estates, including multiple properties, businesses, investments, and other unique assets.
In this article, we will explore how to manage complex assets within your online will in Australia, ensuring that your estate is carefully planned, even when it involves intricate or high-value assets. We’ll also discuss the steps involved in creating an online will, the legal framework, common mistakes to avoid, and how to ensure your will is valid and comprehensive.
Introduction
Online wills have revolutionized the way Australians approach estate planning. They are an increasingly popular choice due to their ease, affordability, and flexibility. Creating a will online offers a significant advantage over traditional methods, as it allows individuals to draft a legally binding document from the comfort of their own home. With simple prompts, templates, and guidance, an online will service helps you document how you want your estate managed after your death.
However, while online will services are great for most people, managing complex assets within your will requires careful thought and planning. Whether you have a business, multiple properties, valuable collections, or investments, you need to ensure these assets are properly documented and that your instructions for their distribution are clear and legally valid.
In this guide, we’ll walk you through the process of managing complex assets in your online will, helping you ensure that your wishes are respected and that your assets are protected.
What is an Online Will?
An online will is a digital document used to outline how your assets will be distributed after your death. It allows you to list your assets, name beneficiaries, and appoint an executor who will ensure your wishes are carried out. Online will services are designed to be user-friendly, providing templates and questionnaires that guide you through the process.
While a traditional will written by a solicitor can be personalized and detailed, an online will allows you to create a legally valid document at a fraction of the cost and without the need for in-person meetings. For those with simpler estates, online will services offer a straightforward and affordable option to ensure their assets are distributed according to their wishes.
Online Will vs. Traditional Will Written with a Solicitor
While both an online will and a traditional will serve the same purpose—dictating how your estate is to be divided after death—there are distinct differences in how they are created and managed:
- Online Will: Created using an online platform, which offers templates, guidance, and customizable options. Most online services are designed for straightforward estates, though some platforms also provide options for more complex estates.
- Traditional Will: Drafted with the assistance of a solicitor, who provides legal advice and ensures the document complies with relevant laws. Solicitor-drafted wills are often necessary for complex estates, such as those involving business assets, multiple properties, or significant wealth.
The key difference lies in cost, convenience, and complexity. Online wills are generally cheaper and quicker to create but may lack the level of customization that a solicitor can provide for complicated estates.
Is It Legal to Make an Online Will in Australia?
Yes, online wills are legal in Australia, provided they comply with the legal requirements outlined in the Wills Act of each state and territory. The Wills Act ensures that your will is valid, enforceable, and recognized by Australian courts. For your will to be legally binding, it must meet the following criteria:
- Testator Capacity: The person creating the will must be at least 18 years old and of sound mind. They must understand the nature and effect of creating a will.
- Witnessing: The will must be signed by the testator in the presence of at least two witnesses who are not beneficiaries or their spouses. These witnesses must also sign the will.
- Clear Intention: The will must clearly reflect the testator’s intentions for the distribution of their assets.
Online will services are designed to meet these requirements, and many platforms provide step-by-step instructions to ensure your will is legally valid. However, it’s important to confirm that the service you use complies with your state or territory’s legal framework.
See more: Legal Considerations for Starting Your Own Business: A Commercial Law Perspective
Steps to Create an Online Will in Australia
Creating an online will in Australia is a straightforward process. Here’s a step-by-step guide:
Step 1: Choose a Reliable Online Will Service
Start by selecting a reputable online will service. Look for a platform that is legally compliant with Australian laws and provides clear instructions for the process. It should also offer secure storage for your will and allow for easy updates in the future.
Step 2: Create an Account and Input Personal Details
Once you’ve selected a service, you’ll need to create an account. This usually involves providing personal details like your name, address, and date of birth. These details help ensure that your will is correctly documented.
Step 3: Select the Assets and Beneficiaries
Next, you will need to list your assets and decide who will inherit them. For complex assets, such as properties, businesses, or financial investments, be specific about what each beneficiary will receive. This may require providing additional details, such as account numbers, legal descriptions of properties, or instructions regarding the management of a business.
Step 4: Appoint an Executor
An executor is a person or institution tasked with managing your estate and ensuring that your will is executed according to your wishes. You’ll need to choose a trustworthy individual or organization to act as your executor. Consider appointing someone with the ability to handle complex financial or legal matters, especially if your estate involves business assets or multiple properties.
Step 5: Sign and Finalize the Will
Once you’ve inputted all the necessary information, you’ll need to sign the will in front of two witnesses. These witnesses should not be beneficiaries or their spouses. Many online will platforms offer digital witnessing options, but be sure that this complies with the legal requirements in your state or territory.
Managing Complex Assets in Your Online Will
If your estate includes complex assets, such as business interests, real estate investments, or high-value collections, it’s crucial to ensure that these assets are properly accounted for in your online will. Here’s how to handle complex assets:
1. Real Estate
For multiple properties, be sure to provide clear and specific descriptions of each property. Include the full address, legal description, and any pertinent information regarding ownership, such as whether the property is jointly owned.
If you have an investment property, mention whether you want it sold, transferred, or kept within the family. If you’re passing the property to someone, specify how you want it to be managed (e.g., through a trust or direct transfer).
2. Business Interests
If you own a business, your online will must clearly outline what happens to your ownership share. Do you want your family members to continue operating the business, or should it be sold or liquidated? Specify any business partners or employees who should take over your role or share in the business.
Business owners should also consider setting up a business succession plan alongside their will to ensure smooth continuity in the event of their passing.
3. Financial Investments
When it comes to investments such as stocks, bonds, superannuation, or other financial assets, include details about account numbers, institutions, and specific instructions on how these assets should be distributed. If you want a portion of your investments to go to charity or be divided among multiple beneficiaries, make sure this is clearly noted.
4. Personal Property and Collections
For valuable personal property such as art, jewelry, antiques, or collectibles, ensure each item is specifically listed and described. If there are multiple beneficiaries for these items, outline how the items should be divided, or specify if any should be sold and the proceeds distributed.
5. Digital Assets
Don’t forget to include your digital assets, such as online bank accounts, cryptocurrency, social media accounts, and digital files. These can have real-world value, and it’s important to clearly specify how they should be accessed, managed, or transferred to your beneficiaries.
Things to Consider Before Creating an Online Will
While online wills are an excellent option for many Australians, there are several things to keep in mind:
- Estate Complexity: If your estate involves business interests, multiple properties, or substantial financial investments, you may need additional legal advice to ensure your will fully addresses these complex matters.
- Executor’s Responsibilities: Choose your executor carefully, especially if your estate is complicated. The executor will have significant responsibilities, and it’s essential to appoint someone who understands the scope of the tasks ahead.
- Legal Advice: For highly complex estates, consulting a solicitor might be the best option to ensure your wishes are fully protected and executed.
Benefits of Creating a Will Online in Australia
Creating an online will offers several key benefits:
- Cost-Effective: Online wills are often more affordable than hiring a solicitor for a traditional will.
- Convenience: You can create or update your will at any time, from anywhere.
- Speed: The online process is typically much quicker than meeting with a solicitor.
- Flexibility: Online services make it easy to make updates as your circumstances change, such as acquiring new assets or changing beneficiaries.
Common Mistakes to Avoid When Making an Online Will
Even with the convenience of online will services, there are several common mistakes that people make:
- Not Being Specific Enough: For complex assets like real estate and business interests, it’s crucial to provide detailed information.
- Overlooking Witnessing Requirements: Ensure that your will is signed in front of two eligible witnesses to avoid invalidation.
- Not Updating Regularly: As your circumstances change, make sure to update your will to reflect any new assets, family changes, or other important shifts.
How to Ensure Your Online Will is Valid in Australia
To ensure that your online will is valid:
- Follow Legal Requirements: Ensure it meets the witnessing requirements set by your state’s Wills Act.
- Be Clear and Specific: Especially when dealing with complex assets, ensure all instructions are clear to avoid confusion.
- Regular Updates: Keep your will updated regularly to reflect any changes in your life.
Conclusion
Managing complex assets in your online will doesn’t have to be overwhelming. By following the steps outlined above and ensuring that your will is clear, specific, and legally valid, you can ensure that your estate is distributed according to your wishes. Online will services offer an affordable and efficient way to create and manage your will, even if your estate includes complex assets. Whether you’re dealing with real estate, business interests, or digital assets, taking the time to create a well-drafted online will ensures your legacy is protected.
