Key Estate Planning Decisions to Make in Your 30s
Your 30s can feel like a whirlwind of milestones and responsibilities. From settling into a career to building a family or purchasing a home, it’s a time of immense growth and change. With so much happening, it’s easy to overlook estate planning—but now is the perfect time to take control of your future. Making thoughtful decisions today can save your loved ones from unnecessary stress and ensure your wishes are respected. Here are the key estate planning steps to consider in your 30s and why they matter.
1. Draft or Update Your Will
If you don’t already have a will, now is the time to create one. If you do, it’s likely due for an update to reflect the changes in your life.
Why It Matters:
A will gives you control over how your assets are distributed, ensuring they go to the people and causes that mean the most to you.
If you have children, you can appoint trusted guardians who will care for them if you’re no longer able to.
What Can Go Wrong Without It:
Without a will, your assets are divided according to intestacy laws, which may not align with your wishes.
Decisions about your children’s guardianship will fall to the court, potentially resulting in outcomes you wouldn’t have chosen.
2. Appoint a Power of Attorney and Advance Care Directive
Life is unpredictable, and having someone you trust to manage your finances and healthcare decisions is a safety net you can’t afford to skip.
Why It Matters:
A power of attorney ensures your bills are paid and your assets are managed if you’re unable to handle them yourself.
An advance care directive outlines your medical preferences and appoints someone to make health decisions on your behalf.
What Can Go Wrong Without It:
Your loved ones may face delays and legal hurdles to gain authority over your affairs.
Healthcare decisions might be made by someone who doesn’t fully understand or respect your values.
3. Review Superannuation and Life Insurance Beneficiaries
Superannuation and life insurance are significant assets, but they require careful planning to ensure they align with your intentions.
Why It Matters:
Binding death benefit nominations ensure your superannuation is paid to your chosen beneficiaries.
Life insurance can provide critical financial support for your family, covering expenses like mortgages and education.
What Can Go Wrong Without It:
Outdated or missing nominations can result in your funds going to unintended recipients.
Beneficiaries who aren’t tax dependants may face higher tax liabilities, reducing the overall benefit.
4. Plan for Real Property and Investments
Owning property or building investments adds complexity to your estate, making it essential to plan carefully.
Why It Matters:
Property ownership structures, such as joint tenancy or tenants in common, affect how assets are passed on.
Investments can be distributed or managed according to your long-term goals for your family’s financial wellbeing.
What Can Go Wrong Without It:
Real property may pass to a co-owner automatically, even if that’s not your preference.
Investments could be mismanaged or become a source of family conflict without clear instructions.
5. Establish a Testamentary Trust
If you have children or significant assets, a testamentary trust offers long-term flexibility and protection.
Why It Matters:
It shields assets from potential claims by creditors or in the event of a relationship breakdown.
It provides tax-effective ways to distribute income to beneficiaries, especially minors.
What Can Go Wrong Without It:
Assets may be vulnerable to external claims or poor financial decisions by beneficiaries.
Opportunities for tax savings and wealth preservation may be lost.
6. Consider Special Provisions for Blended Families
Blended families can make estate planning more complex but also more vital to avoid misunderstandings and disputes.
Why It Matters:
Tailored plans ensure fair and transparent treatment for both biological and stepchildren.
Tools like life interest trusts can provide for a surviving spouse while protecting children’s inheritances.
What Can Go Wrong Without It:
Conflicts between family members can escalate, leading to costly legal battles.
Your intentions for equitable distribution may not be honoured, straining relationships.
7. Address Your Digital Legacy
Your digital presence is an often-overlooked part of estate planning, but it’s increasingly important.
Why It Matters:
Including digital assets, such as online accounts or intellectual property, ensures they are managed or transferred according to your wishes.
It prevents loved ones from struggling with inaccessible accounts or unresolved subscriptions.
What Can Go Wrong Without It:
Valuable digital assets could be lost or mishandled.
Privacy and security risks may arise if accounts remain active or fall into the wrong hands.
Final Thoughts
Your 30s are a time to build the life you’ve envisioned, and estate planning is a key part of securing that future. Taking these steps now ensures your family is cared for, your assets are protected, and your values are respected. More than just a legal process, estate planning is an act of love for the people who matter most.
At our firm, we’re here to help make the process simple and tailored to your unique needs. Whether you’re starting fresh or updating an existing plan, we’re ready to guide you every step of the way.
Ready to take control of your future? Contact us today to book a consultation and create an estate plan that gives you and your loved ones peace of mind.