I just had a lengthy conversation with Tash, one of our lawyers.  Topic of choice this time?  It’s time to update our wills.  I wrote my first will when I was about 20 even though I didn’t really have a great deal of money or wealth to pass onto anyone.  Fast forward a few (OK, a lot) years, and things are getting pretty complex.  Once you throw in either a bit of money or some kids, all of a sudden there are lot of things to consider.  Do you need a will?  Well, consider this.

For most people that I know, if they were to pass away they would leave at least $2,000,000 in cash and assets to the next generation.  Once you combine some equity in a property or two, some superannuation and life insurance, it’s easy to see how you can hit that number.  It’s very common for someone to have $1,000,000 of life insurance, and often $2,000,000.  If you’ve got a couple of young kids, that’s a young child inheriting $1,000,000 + each.  That’s a total game changer for that child and from my perspective is just as much a burden as it is a blessing.  Imagine that money invested for 20 years until they can do something with it.  It’s plausible that it could be worth $3,000,000 or even more.  Imagine starting out life at 25 with millions in the bank – how is it going to affect you?  How is it going to affect your relationships, your attitude, your ethics?  Think about it too much, and you’re head will start spinning.

That is where a good will comes in.  You work hard, you make good decisions, but it can all come undone if you’re no longer around and your family is then relying on other people to make the decisions.  But they’re not decisions for you, they’re decisions for the next generation.  An example of a provision you may want to consider is ensuring that your child’s partner signs a Binding Financial Agreement (often referred to as a Pre-nup) prior to your child receiving any inheritance.  That way, you’ve got a greater chance of your assets staying in the family rather than being split should a partnership not work out.

To get a robust will, it will take a solid 20-30 minutes of chatting with your partner or thinking by yourself.  This is followed by about 2 or 3 30 minute meetings with a solicitor.  Then you’re done.  That’s it.  People spend more time choosing a TV or pair of shoes.  Do you need a will?  You most certainly do.  Is it easy to write a will?  Damn right it is – and a lot easier compared to the alternative.