Estate planning is an essential process that helps individuals prepare for the distribution of their assets after their death. It typically involves creating a Will, however there is a lesser-known but incredibly valuable tool in estate planning, a Statement of Wishes (or a Letter of Wishes).
What is a Statement of Wishes?
A Statement of Wishes is a non-binding document that accompanies a Will.
While it is not a legal requirement, it serves to guide to your executors, trustees or other individuals involved in managing your estate and essentially, it outlines your personal preferences, desires or wishes regarding how certain aspects of your estate should be handled.
As it is not a legally binding documents, it is important to remember that a Statement of Wishes does not have the legal authority that a Will does. It does however, play a crucial role in providing guidance and offering clarity about your intentions.
The document can cover various aspects of your estate and can be tailored to meet your specific needs.
Why Should You Include a Statement of Wishes?
Though not legally binding, a Statement of Wishes offers several key benefits:
Clarity of intentions
A Statement of Wishes ensures that your personal preferences are clearly communicated to those who will be responsible for administering your estate. It can provide specific instructions on how you want your assets to be handled or how you wish certain people to be treated.
Guidance for your executors
Executors have a heavy workload when administering your estate and are tasked with overseeing the distribution of your assets.
While they are legally obligated to follow the instructions outlined in your Will, they may encounter situations where the Will is vague or does not fully address certain matters. A Statement of Wishes can help them deal with these issues and make sure that their decisions align best with your values and wishes.
Reducing potential conflict
A Will can cause tensions and possible conflicts with family and loved ones and if sometimes cause family members and loved ones not always agree with the contents or the Will or, the decisions made by the executor.
A Statement of Wishes can reduce misunderstandings or disputes by clarifying your wishes directly.
While the document is not legally enforceable, it can provide a strong sense of direction for your loved ones and the people handling your estate.
Flexibility
A Will involves the distribution of tangible assets but estate planning as a whole is a lot more complex and includes decisions about guardianship of children, funeral arrangements, and more.
A Statement of Wishes offers flexibility, allowing you to address sensitive matters that might not be appropriate for a formal Will.
Common aspects in a Statement of Wishes
Here are some areas in which individuals often include guidance in their Statement of Wishes:
Guardianship of minor children – If you have children who are under the age of 18, your Statement of Wishes can specify who you would like to care for them if both parents pass away. While guardianship decisions are ultimately made by the court, your wishes will be taken into account as evidence of what you want.
Distribution of personal belongings – A Will may specify who inherits major assets, but a Statement of Wishes can outline how you want personal items, such as family heirlooms, jewellery, etc to be distributed among family members or friends.
Funeral and burial preferences – A Statement of Wishes can include your preferred funeral arrangements, burial or cremation wishes, or any memorial service details.
Care of pets – If you have pets, a Statement of Wishes can detail who should care for them and how to handle their well-being after your death and how they are to be cared for.
What makes a good Statement of Wishes
Creating a Statement of Wishes is relatively simple, however, it is best to seek legal advice to create an effective Statement of Wishes that does not interfere with the contents of your Will.
Some tips when making a Statement of Wishes include:
- Be clear and specific;
- Update your Statement of Wishes as needed to reflect changes in your family, assets and wishes; and
- Communicate with your loved ones and your executor where your Statement of Wishes can be found. We recommend keeping it with your original Will.
How can Nevett Ford help?
A Statement of Wishes is a valuable tool in estate planning and offers guidance and clarity about your personal desires and preferences.
Though it is not legally binding, it can be extremely important after your death as it can assist in reducing ambiguity and potential conflicts during the estate administration process.
Our Wills and Estates Team can assist you to prepare an effective Statement of Wishes that will be communicate to your loved ones and Executors so that your wishes are honoured after your death.
For more information contact us on 03 9614 7111 or email us at willsandestates@nevettford.com.au.
