Estate Planning for Pre-Retirees: The Basics You Can’t Afford to Skip

The Uncomfortable Conversation Nobody Has

Estate planning is the financial topic that most people know they should deal with and almost nobody actually gets around to.

It’s not hard to understand why. It involves thinking about death, incapacity, and family conflict — three things most of us would rather not dwell on over a Sunday morning coffee. So we put it off. And off. And further off.

But here’s the thing about your 50s and early 60s: you’ve probably built up the most significant assets of your life. Super that took decades to accumulate. A family home that’s worth multiples of what you paid. Investment portfolios. Business interests. Personal possessions of sentimental and financial value.

All of that needs somewhere to go. And if you haven’t told it where — legally, clearly, recently — someone else will be making that decision. Possibly in ways you’d find deeply unsatisfying.

This is not a morbid topic. It’s a practical one. And your 50s are exactly the right time to deal with it.

The Will: Start Here, But Don’t Stop Here

Yes, you need a will. If you don’t have one, go and get one done. Today’s the day. An up-to-date, legally valid will, drafted by a solicitor, is the absolute foundation of any estate plan.

But a will is often misunderstood as being more comprehensive than it actually is. Here’s the critical thing most people don’t know:

Your superannuation does not form part of your estate. It sits outside your will.

Super is held in trust by your fund. When you die, it doesn’t automatically go to whoever is named in your will — it goes wherever your fund’s trustee directs it, based on your beneficiary nominations (or, if you don’t have them, the trustee’s discretion).

This means you can have a perfectly good will and your super — which might be your largest asset — still ends up in the wrong hands. This happens more often than you’d think, particularly after relationship changes.

Superannuation Death Benefit Nominations

Your beneficiary nomination is the document that tells your super fund who should receive your balance when you die, and how.

There are a few different types, and they matter:

Binding death benefit nominations (BDBNs) are the most important. A binding nomination legally directs the trustee to pay your super to the person you’ve nominated. They override trustee discretion. But — and this is critical — most binding nominations expire after three years. Many people made a nomination years ago, have since changed their mind or their circumstances, and have no idea it’s lapsed.

Non-binding nominations are a guide to the trustee rather than a legal instruction. The trustee will generally follow them, but doesn’t have to. They don’t expire, but they also don’t give you certainty.

Non-lapsing binding nominations are permanent and legally binding. Not all funds offer them — worth checking whether yours does.

The practical upshot: check your super fund right now. Log in. Find your beneficiary nomination. Check when it expires. Update it if it’s lapsed, if your circumstances have changed, or if it still says the name of someone from a relationship that ended in 2011.

Who Can You Nominate?

Super law restricts who you can name as a beneficiary. You can only nominate what’s called a ‘dependant’ under superannuation law, which includes:

• Your spouse or de facto partner
• Your children (including adult children)
• Anyone financially dependent on you at the time of death
• Someone in an interdependency relationship with you
• Your legal personal representative (i.e. your estate) — which then distributes according to your will

Nominating your estate and distributing through your will gives you the most flexibility in terms of who ultimately receives the money — but it also means the super may become assessable for estate duties and takes longer to distribute.

There’s no universally right answer. The best structure depends on your family situation, the tax position of your beneficiaries, and what you’re trying to achieve.

Powers of Attorney: The One People Always Forget

Your will only takes effect when you die. But what about if you’re incapacitated? What if you have a stroke at 67 and can no longer manage your finances — who pays your bills? Who makes investment decisions? Who deals with Centrelink, your bank, your super fund?

This is what a Power of Attorney (POA) addresses. And it’s arguably more important than a will for most people, because incapacity is statistically more likely to happen before death than death itself.

There are two key documents to understand:

Financial (General) Power of Attorney — authorises someone you trust (your attorney) to manage your financial affairs. In NSW, a General POA lapses if you lose mental capacity — which is precisely when you need it most. That’s why you need an Enduring Power of Attorney.

Enduring Power of Attorney (EPOA) — continues to operate even if you lose mental capacity. This is the one you want. It needs to be made while you still have capacity, signed correctly, and registered if it involves property.

Enduring Guardianship (NSW) / Appointment of Medical Treatment Decision Maker (other states) — authorises someone to make medical and lifestyle decisions on your behalf if you can’t. Separate from the financial POA, but equally important.

If you don’t have these in place, and something happens to you, your family may need to apply to the NSW Civil and Administrative Tribunal (NCAT) or equivalent for a financial management order. It’s expensive, slow, stressful, and completely avoidable.

A Note on Blended Families

Estate planning becomes significantly more complex if you’re in a second marriage or relationship, or if you have children from a previous relationship. These are exactly the situations where the standard default arrangements fail — and where disputes are most likely.

Questions like: what happens to the family home if you die before your spouse? Does it go to them outright, passing eventually to their children from a previous relationship? How do you provide for your spouse while also protecting your children’s inheritance?

These aren’t hypotheticals. They’re the situations that end up in court.

If any of this applies to your situation, getting proper estate planning advice — from a solicitor who specialises in this area — is not optional. It’s essential.

The Estate Planning Checklist for Pre-Retirees

Here’s a practical starting point. Tick these off:

• Current, valid will — made or reviewed in the last 3–5 years, reflecting your current wishes and family situation
• Enduring Power of Attorney — naming someone you trust to manage finances if you’re incapacitated
• Enduring Guardianship / Medical Decision Maker — naming someone to make health and lifestyle decisions
• Super beneficiary nominations — checked for currency and accuracy, not lapsed, reflecting current wishes
• Review of assets held jointly vs individually — jointly held assets pass to the surviving owner, not through your will
• Discussion with your solicitor if you have a blended family, significant business interests, or complex asset structures

Why This Connects to the 2 Cows Strategy

The 2 Cows Strategy is about building retirement income that lasts — income that keeps flowing regardless of what markets do. Estate planning is the final piece of that picture.

Because here’s the thing: all the careful planning in the world — the dairy herd you’ve built, the income it produces, the retirement you’ve designed — can be undone or misdirected if the legal documentation isn’t in place.

Your herd needs a succession plan, just like any good farm does. This is it.

Get Your Financial Affairs in Order With A One Page Plan

The One Page Financial Plan covers your retirement income picture. For estate planning documents — wills, POAs, beneficiary nominations — we work with good local solicitors and can point you in the right direction.

Start with the financial picture. Then get the legal documents sorted. In that order.

Book Your One Page Financial Plan — $660 inc GST

adam@suncow.com.au  |  0418 785 200

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