The four documents most Australian adults should have, why super isn't in your will, and how to set things up so the right people inherit at the right time.
Estate planning is one of those topics most Australians know they should sort out but never quite do. Around 50% of Australian adults don't have a current will. Around 70% don't have a binding super nomination. Most don't have powers of attorney. The cost of fixing all of this is small. The cost of not fixing it — to the people you leave behind — is consistently large. Here's a plain English guide to the four core documents and the order to think about them in.
| Document | What it does | When it kicks in |
|---|---|---|
| Will | Directs how your estate (assets owned in your name) is distributed | After death, via probate |
| Binding death benefit nomination (super) | Directs how your super and any insurance held in super is paid out | After death, via the super fund trustee |
| Enduring financial power of attorney | Lets someone manage your finances if you lose capacity | While you're alive but unable to act |
| Medical / health power of attorney | Lets someone make medical decisions for you if you can't | While you're alive but unable to communicate or decide |
Most adults need all four. Couples often need separate documents for each partner — joint wills are uncommon and have downsides. Different states use slightly different names for the powers of attorney (Enduring Guardian in NSW, Medical Treatment Decision Maker in Victoria, etc.) but the concepts are essentially the same.
A will directs your "estate" — the assets owned in your sole name — to specified beneficiaries. It names an executor who handles the administration. It can include guardianship directions for minor children. It can establish testamentary trusts (trusts created by the will) for tax-effective inheritance, which is particularly useful where beneficiaries are minors or where blended families need careful structuring.
For most Australians a will is straightforward and relatively cheap. Solicitor-prepared wills typically cost $200-600 for a simple situation. Online will services can produce a valid simple will for $50-150. The cost of a contested or invalid will runs into the tens of thousands. Penny wise, pound foolish doesn't capture it.
One thing many people miss: marriage automatically revokes most wills in Australia (with limited exceptions for wills made in contemplation of marriage). Separation does not revoke a will. Divorce typically revokes provisions in favour of the former spouse but not the entire will. Major life events are good prompts to revisit.
Super is held in trust by your super fund. When you die, the fund's trustee distributes your account balance plus any insurance held inside the fund. By default — without a nomination — the trustee decides who receives it, usually based on your stated wishes but with discretion. This is where things go wrong for blended families and where contested distributions can take years.
A binding death benefit nomination legally requires the trustee to follow it (assuming it's valid and your nominees are eligible — usually spouse, children, financial dependants, or your legal personal representative). Most binding nominations are valid for 3 years and need re-signing. Some funds offer "non-lapsing" binding nominations that stay in force until you change them.
The trap: many people set up nominations when they start their first super fund and never update them. After a divorce, the ex-spouse is often still nominated 10 years later. Adult children may not be named. The fund follows the paperwork it has, not the family situation it doesn't know about. Re-check every 3 years and after any major life event.
For more context on super in general, our Super & Retirement Calculator models balance projections and our Salary Sacrifice piece covers contributions.
Most people focus on what happens after they die. The bigger practical risk is incapacity — illness or accident that leaves you alive but unable to make decisions. Without powers of attorney, your family may need to apply to a state guardianship tribunal for authority to manage your finances or consent to medical treatment. That's slow, public, and expensive in a moment when speed matters.
Both should usually be set up at the same time as your will. Cost is typically a small premium over the will alone.
An advance care directive (or living will) records your specific wishes about medical care if you can't communicate them — for example, whether you want resuscitation in particular circumstances, whether you want to be kept on life support, what your end-of-life preferences are. It supplements the medical power of attorney rather than replacing it. ACD forms are state-specific and free templates are available from state health departments.
Disclaimer: This article provides general information about estate planning in Australia and is not legal or financial advice. Estate planning is jurisdiction-specific (each state and territory has different rules) and individual circumstances vary widely. Always consult a qualified solicitor and licensed financial adviser for advice tailored to your situation. For general guidance see ASIC Moneysmart.