Estate Planning Checklist for Australians

A will made without proper legal execution, or one that has not been updated since a marriage or divorce, may be invalid or fail to reflect your intentions. Marriage automatically revokes a will in most Australian states unless the will was made in contemplation of that marriage. Divorce revokes gifts to a former spouse in most jurisdictions but does not revoke the will itself.

An executor who is unaware of their role, or who cannot locate the will, delays the administration of your estate by months. The executor is personally responsible for gathering assets, paying debts, and distributing the estate, so their willingness and practical capacity to do the job matters as much as your trust in them.

If your sole executor has died, lost capacity, or renounces the role, the estate may need to apply to the Supreme Court for letters of administration, which adds cost and delay. A substitute executor named in the will avoids this entirely.

Probate requirements, including the asset thresholds that trigger a formal grant, are set by each state and territory Supreme Court, not federally. A bank or share registry may refuse to release assets above their internal threshold without a grant of probate. The threshold and process differ between New South Wales, Victoria, Queensland, and other jurisdictions.

Without a binding nomination, your super fund trustee has discretion over who receives your balance. Most binding nominations lapse after three years unless your fund offers a non-lapsing option. Check the expiry date on any existing nomination now, and confirm whether your fund allows a non-lapsing nomination before assuming it is set and forgotten.

A nomination to your legal personal representative sends the super through your estate and your will. A nomination directly to a dependant bypasses the estate and is paid faster, but the tax outcome differs. Super paid to a tax dependant (spouse, minor child, or someone in an interdependency relationship) is generally tax-free. Super paid to an adult child who is not a tax dependant is taxed on the taxable component.

A reversionary pension automatically continues to a nominated dependant after your death, rather than being paid as a lump sum. This can preserve the tax-exempt status of the pension phase balance and avoid a forced lump sum that triggers a tax event. Not all funds offer this option and the rules are specific to pension-phase accounts.

An ordinary power of attorney ceases when you lose mental capacity, which is precisely when it is most needed. An enduring power of attorney continues through incapacity and allows your attorney to manage bank accounts, pay bills, and deal with property on your behalf. Each state and territory has its own form and witnessing requirements.

Financial and medical powers of attorney are separate documents in most Australian jurisdictions. Without a medical decision-maker appointed, health providers must follow a statutory hierarchy of substitute decision-makers, which may not align with your wishes. The document is called an enduring guardian in New South Wales and Victoria, and an advance health directive or similar in other states.

An advance care directive (sometimes called a living will) records your preferences for medical treatment if you cannot communicate them. It guides both your medical attorney and treating clinicians. The legal status and form of this document varies by state, so check the requirements for your jurisdiction through your state health department.

Property held as joint tenants passes automatically to the surviving owner by right of survivorship and never enters your estate. Your will has no effect on it. Property held as tenants in common passes according to your will or intestacy rules. These are not interchangeable, and many couples are unaware of which structure they are in. Check the title certificate for your property.

Australia has no inheritance tax or estate tax. However, capital gains tax can apply when inherited assets are eventually sold. The two-year rule allows a main residence inherited from a deceased estate to be sold CGT-free if sold within two years of the date of death, subject to conditions. Investment properties and shares do not have this exemption and the cost base rules are specific.

Some investment platforms and managed funds allow a nominated beneficiary who receives the account balance directly on death, outside the estate. Others do not and the balance forms part of the estate. Check the terms of each account you hold and update nominations after any major life change.

Life insurance needs change with every major life event. A policy taken out before a mortgage, a second child, or a business liability may leave a significant gap. The right amount depends on your outstanding debts, income replacement needs, and the age of your dependants. Review the sum insured whenever your financial position changes materially.

Many Australians hold default life insurance through their superannuation fund without realising it. The death benefit from this policy is paid as part of your super death benefit, which means the same binding nomination rules apply. If your nomination is lapsed or missing, the trustee has discretion over who receives the payout.

Email accounts, online banking, share trading platforms, cryptocurrency holdings, and subscription services all require access credentials that your executor will need. Cryptocurrency held in a self-custody wallet is unrecoverable without the private key or seed phrase. A sealed document stored with your will, or a password manager with a nominated emergency contact, are practical options.

This is not a legal document. It is a practical summary: the location of your will, the names of your solicitor and accountant, the super funds you hold, the insurance policies in force, the bank accounts, the property titles, and any debts outstanding. Without it, your executor may spend months locating assets. Store it with your will or tell your executor where to find it.

Binding death benefit nominations lapse. Relationships change. Assets are acquired and sold. A will that was accurate when signed can be seriously out of date within a few years. A three-year review cycle, and a review after marriage, divorce, the birth of a child, or a significant change in assets, keeps your estate plan current without requiring constant attention.