The actual drafting of a will or documenting for an estate plan has proved more complex than advisers first realise, Equity Trustees senior manager estate planning Anna Hacker said.
"The most common mistake is to do with superannuation, where people attempt to distribute superannuation assets through a will."
She said in most cases, superannuation funds cannot be left to someone in a will unless prior arrangements were made for it to become part of the estate by making a valid binding death benefit nomination, naming the legal personal representative as beneficiary.
If no binding nomination was made, the trustees of the super fund could decide how the assets would be distributed.
"In addition, it's worth keeping in mind that while binding nominations can be amended at any time, they are not automatically cancelled out by events such as divorce," Ms Hacker said.
"Therefore a new binding nomination must be made to ensure that, for example, an ex-spouse doesn't inherit the superannuation savings."
Another area in estate planning causing complications was when the insurance policy of a super account was forgotten, Ms Hacker said.
"The person nominated as the beneficiary of the super fund will usually receive the insurance funds, which may mean a significant amount of money. This may result in unintended inequalities amongst beneficiaries of an estate," she said.
Advisers should also take into account different state laws, as different rules applied in relation to who could challenge a will, and power of attorney arrangements, which should be part of any estate plan.
"Generally speaking, financial advisers are in an excellent position to help clients understand the best way to achieve their estate planning aims and the influences on this," Ms Hacker said.
"They can add significant value to their relationships with their clients by making sure that the estate plan can withstand challenges, tax requirements and other issues, in order to achieve what the client ultimately wants."
