Every January, we promise ourselves change. By February, most New Year's resolutions are already slipping. The gym visits slow, Uber Eats creeps back into the weekly routine and before long, it's business as usual.

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The changes that last are usually rooted in what we care about most. For most people, that's family.

If that's true for you, it may be time to consider a difficult but important question: What kind of legacy are you leaving them?

No one likes to think about it, but death comes for us all, and on its own schedule. Estate planning is a practical step you can take now, so the people you love are protected later.

Many Australians leave behind only a postal will or no will at all, never considering the consequences.

Those bearing the brunt are typically the ones closest to you; a spouse, child or friend left to sift through old filing cabinets, emails, a drawer full of unopened mail, trying to manage finances and people while grieving.

It's a recipe for disaster that can result in broken families, costly court battles and resentment.

When you die, it will be a heartbreaking time for your loved ones. An estate plan can make this time a little easier, removing uncertainty and minimising tax and legal costs.

Your home (and other property): how you own the property is critical. If it's jointly owned, this will pass directly to the other owner/s. If it is owned as tenants in common, your share will pass to your estate.

Bank accounts/ term deposits/ shares and other assets: as with property, joint accounts pass directly to the other account owner, otherwise the assets fall into the estate. This can include shares in private companies.

Superannuation: this is the one people often get wrong. Your superannuation can bypass your estate and be paid directly to an individual if you wish. It can also be directed to your estate if that is appropriate for you. This direction is provided by a death benefit nomination.

These are the documents to use to build a plan that works for you and yours:

Will: start with the key document which outlines your wishes in the event of your death. You'll require an executor who is responsible for distributing your estate in line with your wishes. You may wish to add a secondary executor in the event your first executor is unable or unwilling to act when called upon to do so. The will details each beneficiary, what they will receive. The instruction can be as broad as the share of the estate the nominated beneficiary will receive, or as specific as which piece of jewelry/collectible each beneficiary receives. Depending on your family dynamics, this may also be where you outline why your odd cousin gets nothing from your estate (it is a good idea to provide reasons why a family member is cut out of your estate). You may also detail charitable/philanthropic beneficiaries if that is a legacy you would like to leave. This is also where you can direct who is to take care of minor children should both parents die.

Testamentary trust: a great tool to protect the wealth you leave behind. Predominantly for the benefit of children, these trusts come into existence only on death and hold wealth for the beneficiary often until they reach a certain age. While minors cannot take full control of estate assets until they are 18, a testamentary trust can hold assets well beyond this age, protecting the beneficiary from themselves and others while they are finding their feet as an adult.

Power of attorney: this document grants someone the authority to make financial and legal decisions on your behalf. There are two main types: a general power of attorney, which is for a specific time period and ends if you lose capacity; and an enduring power of attorney, which remains valid even if you lose the ability to make decisions. Obviously, this document holds substantial responsibility and trust as they can make financial decisions on your behalf.

Superannuation death benefit nomination: this document is a key tool as it directs the trustee where to pay your superannuation benefit, whether it's to a spouse, child/ren or into your estate to be distributed according to your Will. This can come in a few different forms: a binding nomination means the trustee must pay the benefit per your instruction; a non-binding nomination means that the trustee will take your nomination into consideration but may choose to pay your benefit to whom in their view is the most appropriate beneficiary. This might be the deceased's children instead of a spouse, or vice versa. Bypassing your estate can be a great planning tool where maybe there is someone in the family who may challenge your estate.

If you haven't thought about your estate plan, your legacy, take some time now to prioritise your loved ones - giving peace of mind to those you will someday leave behind.

Simon Robinson is a financial adviser at RSM Financial Services Australia. The information provided in this article is of a general nature s not intended to guide individual decisions regarding investments or financial products. Readers should seek their own professional advice before making any financial decisions.

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