Estate planning in Australia: why a will and powers of attorney matter for everyone
What estate planning covers
Estate planning is the process of preparing legal documents so that:
- Your assets go to the right people after you die
- The right person can make financial and medical decisions if you lose capacity
- Minor children are cared for by someone you trust
It is not only for the wealthy or the elderly. Any adult in Australia with superannuation, a bank account, property or financial dependants should have at minimum a valid will.
The three pillars
1. Will
Specifies who receives your assets and appoints an executor to administer the estate. Without a will, your estate is distributed under intestacy law — which may not reflect your wishes.
2. Power of Attorney (POA)
Authorises someone to make financial decisions on your behalf if you lose capacity (accident, illness, dementia). Two important types:
- General POA: Takes effect immediately but ceases if you lose capacity.
- Enduring POA: Continues even if you lose capacity — this is the critical one to have.
3. Advance Care Directive / Medical POA
Appoints someone to make medical decisions if you cannot, and records your personal wishes about medical treatment (e.g., resuscitation preferences).
Superannuation needs separate attention
Superannuation does not automatically flow through your will. Your superannuation fund distributes your balance according to the Binding Death Benefit Nomination (BDBN) you have filed with the fund. If no valid nomination exists, the trustee decides — usually a spouse or dependant, but not always who you intended.
Key points:
- Most BDBNs expire every 3 years and must be renewed
- The nominated person must be a dependant or your legal personal representative (executor)
- Non-lapsing BDBNs are available with some funds
How property is held matters
The way your property is owned affects what happens at death:
- Joint tenancy: The surviving owner automatically inherits — not through a will.
- Tenants in common: Your share is distributed through your will — more flexible for estate planning.
Approximate costs
| Document | Approximate cost |
|---|---|
| Simple will (solicitor) | $300–$600 |
| Will + Enduring POA (solicitor) | $600–$1,200 |
| State Trustee / Trustee Corporation | Similar price range with ongoing support |
| Online will kit (DIY) | $40–$100 (higher risk of errors) |
When to update your estate plan
Review and update your will and powers of attorney after:
- Marriage or divorce (marriage may revoke an existing will in some states)
- Birth of a child
- Major asset purchase or sale
- Death of a named beneficiary
- Every 5 years as a general review