When a Will Isn’t Enough: Why You Need an Estate Plan in WA
Many people believe that writing a will is all they need to protect their family and their legacy. While a will is certainly an important part of the process, it’s only one piece of a larger puzzle. If you want to truly safeguard your loved ones, ensure the smooth transfer of your assets, and avoid family disputes, you need more than a will — you need a comprehensive estate plan in WA.
Our estate lawyers specialise in legal advice for wills Perth, and will preparation that reflects your wishes and protects your family’s future. See our Wills & Estates Planning page for more.
Estate planning goes beyond dividing your property. It considers every possible scenario, from managing unexpected incapacity to protecting vulnerable beneficiaries. In this blog, we’ll explain the difference between a will and an estate plan, highlight real-life stories of wills gone wrong, and show you how a proper estate plan can protect your legacy.
What’s the Difference Between a Will and an Estate Plan?
A will is a legal document that outlines how your assets should be distributed after your death. It names your beneficiaries, appoints an executor, and may name guardians for minor children.
An estate plan, on the other hand, is a more comprehensive strategy. It includes a will, but it also incorporates other legal tools like:
• Testamentary trusts to protect vulnerable beneficiaries
• Powers of attorney for financial and legal decisions if you become incapacitated
• Powers of guardianship for health and lifestyle decisions if you become incapacitated
• Succession planning for businesses and other entities, if applicable
The key difference is that a will only applies after your death, while an estate plan protects you and your assets both during your lifetime (if you become incapacitated) and after your death. It also ensures that your loved ones aren’t left grappling with legal and financial challenges during an already difficult time.
Case Study 1: The Inheritance That Disappeared
When David passed away, his children assumed they would receive their inheritance quickly and easily. After all, he had a will. But as it turned out, David’s will failed to account for the fact that his son had large debts, including credit cards and personal loans. When his son received his inheritance, after all the debts were paid, he was left with nothing. Meaning David’s hard earned money was not protected and was eaten up by his son’s bad financial decisions.
Lesson 1: A Will Alone Doesn’t Protect Against Creditors
An estate plan can offer better protection from creditors. By using a testamentary trust, assets can be shielded from creditors of spendthrift beneficiaries so they are preserved for future generations (such as grandchildren). An estate planning lawyer in Perth can help you set up a strategy that protects your family’s inheritance from unforeseen financial risks.
Case Study 2: A Business in Turmoil
Steve owned a successful small business. When he passed away, his will stated that his eldest son would inherit the business. However, it failed to specify how and when this should be done and to provide instructions on succession planning. As a result, the business went into disarray. The son struggled to take control, and key employees left due to uncertainty. The business ultimately failed, resulting in financial losses for the entire family.
Lesson 2: Plan for Business Succession
If you own a business, a will alone won’t be enough to ensure its continuity. A comprehensive estate plan can outline a clear succession strategy, name a business manager, and ensure that your company remains stable in the interim period whilst Probate is being obtained. Succession planning in WA is vital for business owners who want to protect their legacy.
Case Study 3: Incapacity Without a Power of Attorney
Linda suffered a stroke and became unable to manage her own finances. Her husband assumed he could step in to manage her bank accounts and make financial decisions on her behalf. However, since Linda had not established an enduring power of attorney, her husband had no legal authority to act for her. He was forced to apply to the WA State Administrative Tribunal to be appointed as her guardian and administrator, a process that took months and left him stressed and financially strained.
Lesson 3: Plan for Incapacity While You’re Alive
An estate plan is about more than just death. It prepares for unexpected events like incapacity or illness. By setting up an enduring power of attorney and enduring power of guardianship, you can ensure that someone you trust is legally authorised to make decisions on your behalf.
Why Wills Alone Aren’t Enough
If you’re relying solely on a will, you may be leaving your family exposed to unnecessary risk. Here’s why a simple will is not enough:
• No Plan for Incapacity: If you become unable to make decisions for yourself, a will has no authority until you die. You need an enduring power of attorney and an enduring power of guardianship.
• No Business Succession Plan: Wills alone don’t provide clear instructions for business continuity. If you own a business, you need a succession plan.
• No Control Over When Beneficiaries Receive Assets: Wills distribute assets outright, but an estate plan can stagger distributions for vulnerable beneficiaries, like children or individuals with poor money management skills.
• No Asset Protection for Children: Without an estate plan, beneficiaries who go through divorce or bankruptcy may see their inheritance drained. Testamentary trusts protect against these risks.
A will is useful, but it’s only part of the bigger picture. An estate plan addresses all of these issues and more.
What Should Be Included in an Estate Plan?
If you’re ready to go beyond a simple will, here’s what you’ll need to consider for your estate plan:
1. A Legally Binding Will
Yes, you still need a will! But it should be clear, legally sound, and free from ambiguity to avoid disputes.
2. Testamentary Trusts
These trusts protect beneficiaries from creditors, relationship breakdowns, or their own financial mismanagement.
3. Power of Attorney
This document ensures someone you trust can manage your finances if you become incapacitated.
4. Power of Guardianship
This document ensures someone you trust can make medical and lifestyle decisions for you if you become incapacitated.
5. Succession Plan for Business Owners
If you own a business, you’ll need a clear strategy for what happens after you’re gone.
6. Debt and Tax Planning
An estate lawyer can help you prepare for any debts or taxes that will need to be paid before assets are distributed.
How to Get Started With an Estate Plan in WA
Estate planning may sound overwhelming, but with the guidance of our midland lawyers at Bechelet & Co it can be a straightforward process. Here’s how to get started:
Review Your Current Will: If you have one, ensure it’s up-to-date and legally valid.
2. Identify Your Key Assets: Property, bank accounts, shares, businesses, and other assets should be accounted for.
3. Appoint Trusted People: Select your executor, guardian for your children, and attorney for financial matters.
4. Meet with an Estate Lawyer: Get professional advice to ensure your estate plan addresses every possible scenario.
Don’t Wait Until It’s Too Late
If you only have a will, your family may still face legal battles, financial stress, and delays. Protect them with a comprehensive estate plan that ensures your wishes are carried out — no matter what happens. By thinking ahead, you can avoid mistakes that cost your family time, money, and emotional turmoil.
See our Wills & Estates Planning page for more.
At Bechelet & Co, our estate lawyers in Perth can help you go beyond a simple will and create a complete estate plan tailored to your needs. We offer a complimentary 15-minute consultation to get you started.
Book your free consultation today:https://bechelet.co/contact