EOFY estate planning: why tax season is a great time to review your will

Tax season isn’t just a time to do your returns and sort out numbers. It’s also a great chance to take a look at your estate plan. Since you’re already going through your finances, it makes sense to check if your will and other key documents are still accurate. Doing this now could prevent your family from dealing with unnecessary stress or expense later on.

Here’s why the end of the financial year (EOFY) works so well for estate planning and what you should focus on during your review.

Why EOFY is a good match with estate planning

At the end of the financial year, people usually think about their finances—like tax returns, superannuation, investments, and costs. Your estate plan ties to your money and assets, while you’re alive and well and in case of illness or death, so this is a good time to check on it too.

Main reasons to check your estate plan at EOFY:

• Any changes to your assets? Have you purchased property, inherited money, or shifted your finances in a major way?
• Changes in your family life? Have you tied the knot, ended a marriage, had kids, or experienced the loss of a loved one?
• Thinking about tax? Review with your estate planning lawyer if your estate plan takes taxes into account so you leave behind as much as possible.
• Looking at superannuation and death benefits? Double-check that your binding nominations are current to ensure your super goes to the right people.
• Estate laws different now? Remember, regulations and laws about deceased estates, taxes, and superannuation do evolve. Make sure your estate planning stays up to date and works as intended.
• Your executors or decision-makers might not be the right fit anymore – When the executor and attorney and guardian you picked is no longer a good option because of their age, health, or life situation, you need to make changes.
• Shifts in business interests – If you run a business, planning ahead for who will take over helps prevent problems and keeps operations running while your estate is dealt with. Lining up your business plan with your personal estate plan also means your loved ones receive benefit from your business assets.

What to review in your estate plan

1. Review and update your will

Your will serves as the foundation of everything in your estate plan. Confirm it still matches what you want and includes every asset you own.

Important points to review:

• Are the people named as beneficiaries and executors still the best for the job?
• Do you need to include or name any newer family members, like kids or grandkids?
• Does anything in the will seem outdated or unclear?
• Have you listed assets you no longer own as specific gifts in your will? Update your will to avoid future misunderstandings.
• Have you chosen guardians for your children? If their lives or circumstances are now different, you might want to revisit these choices.

Real-life example:

Sarah created her will a decade ago back when she was single. Since then, she gotten married and now has two children but her will still gives everything to her parents. Not only does marriage revoke wills but if something happened to her today, her husband and kids would need to sort out a very messy estate they wouldn’t be entitled to under her will.

2. Power of attorney and enduring guardianship

These are the main estate planning documents you will feel the effect of during your lifetime. They allow a trusted person to handle your money and health decisions if you’re unable to do so. If you don’t have them or they are outdated, your family might need to take the matter to a tribunal, which can be both stressful and costly.

Things to review:

• Is the person you picked as your attorney or guardian still the right fit for the job?
• Do they get what you want and know what their duties are?
• Have any personal or legal situations changed that could affect what they need to do?

3. Superannuation and death benefit nominations

A lot of people don’t know that superannuation isn’t automatically handled by their will. Superannuation funds follow their own rules, in line with superannuation laws, so it’s important to set up a death benefit nomination.

Things to review:

• Is your nomination still up-to-date? (Most expire after 3 years).
• Does it still match what you want right now?
• Has anything in your family or relationships changed? Not all loved ones can be listed on a death benefit nomination, they have to fall into a particular category of persons 

A real-world example

Tom listed his former partner as the beneficiary in his superannuation nomination. After he re-partnered, he didn’t remember to change it. When he died, his superannuation went to his ex-partner, which left his current partner and kids with no financial support.

4. Trusts and tax strategies

The end of the financial year is a good opportunity to review family trusts or tax planning ideas that connect to your estate.

Important points to think about:

• Do your trust setups still suit what your family needs now?
• Are there any tax-saving strategies to secure your assets?
• Have you reached out to your accountant or financial advisor to discuss possible adjustments?
• Is a testamentary trust will right for you?

EOFY and estate planning FAQs

Should I change my estate plan every end of financial year?

It’s smart to review it every couple of years at a minimum, but big updates often become necessary when major life events happen like getting married, divorced, or having kids.

Do I need a lawyer to change my will?

Small updates might seem simple, but it’s a good idea to consult an experienced estate planning lawyer to ensure your changes are recognised by the law.

What happens if I don’t change my estate plan?

If your will or estate plan doesn’t match your current life, your property might end up with people you didn’t intend, and your loved ones could deal with legal troubles.

Final thoughts

The end of the financial year is a great time to review your estate planning while going over your finances. A quick check can prevent your family from facing unnecessary stress or expensive errors later.

Do you need to update your will or estate plan? Copeland Estates Legal can assist you. Reach out to us today to get expert advice and feel confident about your decisions.

Send us an email at [email protected], give us a call on 📞 1300 034 487 or book in a free 10 minute chat here. 

We’ll look after you.