Plan to provide for the loved ones you leave behind
Estate planning is more than just having a Will. It's about ensuring your assets go to the right people when you pass away. Even if you don't need it yet, it’s helpful to have your full estate planning documents in place so you’re ready – just in case.
There are five key elements of estate planning, and each element helps your loved ones decide what to do with your assets and/or how to manage your affairs when you die or lose the ability to make sound decisions.
The five elements are:
Super beneficiary nomination
This allows you to nominate who should receive your superannuation benefits when you die. Your nomination can be:
- binding – an instruction your super fund is legally required to follow
- non-binding – a guide for your super fund, or
- reversionary – continues paying your pension to the nominated person after your death
Death insurance cover
Death insurance cover with Mercer Super may pay a lump sum to your nominated beneficiaries when you pass away. It can help provide financial security during a difficult time and cover expenses like your funeral costs, outstanding debts, and regular bills. Alternatively, if you are diagnosed with a terminal illness, with 24 months or less left to live, this benefit may be paid to you directly.
Last Will and testament
A Will is a legal document that outlines how your assets will be distributed after you die and states an executor to carry out your wishes. You can also specify who you’d prefer to be the guardian for your minor children.
Powers of attorney and guardianship
A power of attorney grants someone authority to make legal, financial, and personal decisions on your behalf if you become unable to do so. It can be:
- general – becomes invalid when you die or lose mental capacity, or
- enduring – remains valid even if you lose mental capacity
Guardianship allows you to nominate a person to make lifestyle decisions for you if you lose mental capacity. Decisions like where you live, your at-home care, and medical treatment.
Additional resources
Estate planning involves a series of tasks and decisions designed to provide certainty to your family and loved ones. These handy checklists, tools and resources may help you understand and deal with any challenges along the way.
- Estate planning checklist
Our estate planning checklist may help you keep on top of things as you put your plan in place
- Insurance needs calculator
This handy calculator from one of our insurers, AIA Australia, can give you an idea of how much cover you may need
- Moneysmart website
A great government resource for the rules and details regarding Wills and powers of attorney
Advanced care directive
An advanced care directive (also known as a Living Will, personal directive or health directive) records your preferences for future medical treatment if you can’t communicate those decisions. It guides doctors on continuing or withdrawing treatment, as well as instructions about organ donation and funeral arrangements.
Important!
We recommend you engage a lawyer to support you through this process.
Ready to create your estate plan?
Ready to create your estate plan? The Care & Living with Mercer team has carefully selected a network of financial planners and estate experts who can provide the guidance you need.
Disclaimer: This content has been prepared on behalf of Mercer Superannuation (Australia) Limited ABN 79 004 717 533, Australian Financial Services Licence #235906, the trustee of the Mercer Super Trust (‘Mercer Super’) ABN 19 905 422 981. Any advice is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any advice, please consider the Product Disclosure Statement (including incorporated documents) and Financial Services Guide available at mercersuper.com.au. The product Target Market Determination can be found at mercersuper.com.au/tmd. The material contained in this document is based on information received in good faith from sources within the market and on our understanding of legislation which we believe to be accurate.
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* Any information in this material regarding legal, accounting or tax outcomes does not constitute legal advice or an accounting or tax opinion and prior to relying and acting on this information it is important that you seek independent advice from a qualified lawyer or accountant regarding this information. Past performance is not a reliable indicator of future performance. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.
Past performance is not a reliable indicator of future performance. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.