Emergency folder: Where to store your will and final wishes

Written by Melissa Iara for Australian Seniors

Dying suddenly can leave a huge mess for your loved ones to unravel if you haven’t kept your important documents in an easy-to-find place. Families can often be left scrambling trying to find a will, bank accounts, and basic funeral wishes in the middle of their grief.

To avoid exactly that, Scott Pape, aka The Barefoot Investor, suggests creating a “Fearless Folder” – a digital or physical file that holds everything your family needs if something happens to you. That means your will, powers of attorney, a list of accounts and investments, superannuation nominations, funeral plans, and important logins.

Keep it in a fireproof safe, give the executor a spare key, and store digital copies in a secure email account with clear instructions on how to access it. As Scott writes, “We spend hours planning a holiday. Weeks researching a car. Yet we won’t spend a couple of hours making sure the people we love most aren’t left sorting out a bureaucratic nightmare.”

Find a safe place

Estate lawyer and Law Institute of Victoria board director Kathy Wilson agrees. “Trying to find things can be impossible,” she says. The point is to keep everything together and tell the right people where to find it.

Most importantly, have an up-to-date will – without a will, usually the person who stands to inherit the most must apply for Letters of Administration, which can get complicated fast, especially in blended families or second relationships where the couple never married.

“Then there’s a debate about whether they’re really a domestic partner, which entitles them to a share in the estate, or whether the children, for example, from a prior relationship are entitled,” Kathy shares.

In her experience, family tensions often flare, especially after a sudden death. She recalls one case where a separated partner ended up “double-dipping” – they had already received an informal settlement while their ex was alive, but because the will wasn’t updated, they still inherited half the remaining estate. “Heads up: most people don’t give it back,” Kathy adds.

Your will should be updated if your life situation changes. Separation is one of the biggest traps, Kathy says. “With all that going on, nobody thinks to make another will.” But if you separate without divorcing, your estranged spouse can still inherit. In that situation, consider even having an interim will that you can update once all issues are resolved, she adds.

Barry DuBois also shares why it’s important to update your will on the Life’s Booming Podcast.

Related: How to plan your estate

What you need to consider when estate planning

While DIY will kits suit simple solutions, mistakes can cost thousands later if your estate is more complex. Kathy compares it to servicing a car: “If you’ve got a little old car, you only need a little simple service. If you’ve got a very complicated car and need a bigger service, it costs more. It’s a worthwhile investment.”

To help streamline the process – and save money – prepare a list of your assets, beneficiaries, and wishes before meeting a lawyer. And remember: your superannuation doesn’t automatically form part of your estate, and your beneficiary nomination must be legally binding. Also, be sure to choose your executor wisely – ideally two or three trusted people to manage your affairs how you’d like.

As Kathy says, a will is not just for the wealthy, but anyone wanting to protect those they care about. Even close families can fracture when there’s uncertainty. And often, loved ones cannot access funds for months (or more) if a matter is being resolved in court.

Worryingly, dying without a will can lead to unsatisfactory outcomes like estranged relatives from overseas or interstate inheriting, despite having nothing to do with the deceased person. “I say to people, don’t wait. Too many people put it on their list, and they’ll get around to it, and then unexpected things happen,” Kathy says.

Related: Dying at home and proper end of life planning

Protecting your assets and planning ahead

The Australian Seniors Series: The Cost Of Death 2.0 Report 2023 finds that:

• 78% of over 50s have a plan in place for their assets after they die
• 53% say their family is aware of their funeral wishes
• 49% have made plans for how their funeral will be financed
• 23% have decided on their funeral/ceremony location