Death is an inevitable part of life, and will happen to all of us one day.
It may be a long way off, but it could also happen sooner than you think — and if you're not prepared, it could leave your family and loved ones with legal complications, financial burdens, and difficult decisions.
Here are the things you can organise to help make your death a little bit easier for the people around you.
What is a will, and do you really need one?
A will is a legal document outlining your wishes for when you die. It can include instructions for your funeral, whether you would like to donate your organs, who you would like to leave money to and guardianship plans for your children (if you have any).
Anthea McIntyre is a solicitor and director at McIntyre Legal and an accredited specialist in wills and estates.
McIntyre says all adults who own assets should have a will, even those who are young and healthy.
"We spend our lives accumulating wealth and assets. When we die, we want to be able to direct who's going to control those assets and who's going to receive them," she says.
Wills are typically drafted by a solicitor. While some people may think that drafting their own will is a good way to save money, McIntyre warns many people make errors with DIY wills.
"If your will is not drafted correctly, it can lead to unintended outcomes and be a very expensive and stressful experience for the family who are already grieving the loss of a loved one," she says.
"I could talk for hours about the devastating situations I've seen when people decide to draft their own wills or fail to make a will," McIntyre says.
It is best to receive advice from a solicitor regarding your estate planning and to update your will when your circumstances change, including, for example, following marriage, divorce, commencing a new relationship or the birth of a child.
What if I don't have any assets?
Even if you don't own a house or car or have a lot of money saved, it is still important to make plans for your death.
Financial planner Billy Amiridis, managing director of 360 Financial Strategists, says while wills and finances typically become more complex as people age, it is something everybody should think about.
"We all think that we're not going to pass away until we're really old and grey, so we don't have to worry about it until sort of later on in life, which is not always the case," he says.
"The more complex your life is — so if you have a spouse, dependent children and so on — the more critical it is."
Billy Amiridis says it is important to organise your finances ahead of your death. Source: Supplied / Billy Amiridis
If you die without a will, this is called intestacy. In this case, your money will be automatically allocated to your family in a specific order determined by legislation, he explains.
"There is a state-based formula in terms of who gets what, so essentially it works in [that] you scale it down, immediate family members get your stuff," he says.
"Firstly, it goes to parents, then siblings, and works its way down, and eventually, if you don't have anybody, the state gets it."
What happens to my superannuation when I die?
For most Australians, superannuation is one of the biggest assets left behind after death, so it is important to consider who you would like to access it.
But it's not as simple as just writing a note listing who you want to inherit your money.
You need to complete a binding death benefit nomination, which is separate from a will. If you have not done a binding death benefit nomination, the super fund's trustee and policy will determine who the money goes to.
"Superannuation is a non-state asset, so what that means is that it doesn't form part of your general estate the same way that your other assets will," Amiridis says.
"If you've got a valid beneficiary nomination, the superannuation fund will pay it to that person irrespective of what's going on with the will or anything like that."
There are legal requirements that determine who can receive your superannuation, so it is important to understand these restrictions before completing your death benefit nomination.
What happens to your debt when you die?
Some types of debts will die with you, while others — such as mortgages — will continue.
For example, if you leave someone a property worth $1 million, and the mortgage has $200,000 remaining, they will then become responsible for paying that mortgage.
"That debt sticks with the property, so [the beneficiary] will essentially need to take over that debt," Amiridis says.
"If they ended up selling the property, then $200,000 goes to the bank, and $800,000 goes to the beneficiary, subject to tax."
Other types of debt, such as HECS-HELP or credit card debt, are cancelled when you die.
'It does take a toll'
When Dani's (not her real name) mother died in August 2020 after a long illness, while it wasn't sudden, it came with a series of complications.
These included difficulties closing bank accounts, memorialising social media accounts, accessing her superannuation, getting a new Medicare card — as Dani and her mother had previously shared one — and fulfilling specific funeral requests.
"It does take a toll on you when you have to do all this paperwork which is a lot," Dani says.
"People leave behind huge footprints, whether that be accounts or assets that they have, social media accounts or anything like that."
"It's a lot to take in and a lot of people [to] let know, and it does drain you," Dani says.
Four-and-a-half years later, she and her father are still sorting out some of the paperwork.
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She says the experience influenced her to consider plans and admin for her own death.
"To me, it's about making it as easy as possible for other people," she says.
"It's not something I would have otherwise thought about, but it does make you think about what you want to do when you die."
Should I plan my funeral?
Planning for your death isn't just about money and legal documents; it also includes making plans for your funeral and what you would like to happen to your body when you die.
Kelly Scott, national president of the Australian Funeral Directors Association, advises speaking with your friends and family about what you do — and don't — want to happen.
Scott says this can make the process easier for your loved ones after your death.
"It almost is a relief to families to know they're doing the right thing," she says.
"At a time of loss in all those myriad of feelings ... you are adding layers of grief if you're thinking 'I don't know what to do, we never talked about this'."
Funeral wishes can include whether you want to be buried or cremated, where you would like your ashes scattered, where you would like the service to take place, any special music you would like played, and who you would like to speak at the service.
It is also important to consider funeral costs, which vary depending on your location and the type of funeral you opt for.
Scott says while a funeral does not necessarily need to be prepaid or formally agreed on, giving your loved ones a basic idea of your wishes can help ease their grieving process.
"You can see the difference when people have that basic understanding of what someone wants."
