A practical guide to creating a will for new home buyers

You navigated the inspections, the mountain of paperwork, and the wait for finance. You’ve got the keys in your hand. Congratulations on buying a new home! It’s a huge milestone, and you should be soaking it all in.

Amid the excitement of choosing paint colours and planning housewarming parties, there's one more crucial piece of paperwork that often gets overlooked. It may not be as exciting as picking out a new sofa, but it is more important. We’re talking about your will.

Think about it this way: you’ve just taken on what is likely the biggest asset you'll ever own. You wouldn't leave it uninsured against fire or flood, right? A will is like that; it’s a key protection plan for your home, ensuring it goes to the people you love if something unexpected happens to you. This guide will walk you through why a will is a must-have for new homeowners, the key decisions you’ll need to make, and how you can get it sorted easily and affordably.

Why a will is crucial for new homeowners

A will is a legal document that spells out your final wishes for how your assets (your "estate") are distributed and, if you have kids, who should care for them after you're gone. Now that you're a homeowner, your assets include a very significant item: your property.

Here’s why getting a will sorted is a top priority the moment you buy a home:

1. You decide who gets the house: This is a major point. Without a will, you don't get a say. Instead, state laws, known as the rules of intestacy, apply. These laws use a formula to decide who inherits your property, and that person might not be who you’d choose. A will puts you in control.

2. It protects unmarried partners: If you’ve bought a home with your de facto partner, this is especially important. In Australia, without a will, your partner isn't automatically guaranteed to inherit. They might have to go through a court process that can be stressful and expensive to prove the relationship before they can inherit their share of the home you built together. A will removes this uncertainty and protects the person you share your life with.

3. It prevents forced sales and family conflict: Imagine this scenario: you have children from a previous relationship and a new partner. If you pass away without a will, intestacy rules might split the home's value between them. This could force the sale of the house to pay out the children's share, potentially leaving your partner without a place to live. A will lets you create a plan that works for everyone, avoiding conflicts down the track.

4. It clarifies how the mortgage is handled: What happens to the mortgage when you’re gone? It doesn’t just disappear. Your will can provide clear instructions on how the remaining debt should be paid off, whether that’s from other assets in your estate or through the sale of the property. This clarity prevents a significant financial issue for your loved ones while they’re grieving.

The three key decisions in your will

Buying a home often goes hand-in-hand with other big life events, like starting a family. Your will is where you formalize your wishes for all these important parts of your life. It sounds complicated, but it really boils down to three main decisions.

Choosing your beneficiaries: Who inherits the house?

Your beneficiaries are the people (or organisations) who will inherit your assets. As a homeowner, your biggest decision is deciding who gets the property.

Here are a few common scenarios:

• Spouses/Partners: The most common approach is to leave the home to your surviving partner. This ensures they have security and a place to live without disruption. You can specify whether they inherit it outright or have the right to live in it for their lifetime.
• Children: If you have children, you’ll likely want your property (or the money from its sale) to go towards supporting them. You can outline how and when they receive their inheritance, for example, once they reach a certain age.
• Others: You're not limited to immediate family. You can leave your home to a sibling, a close friend, or even a charity you care about.

The key is to be clear, especially in blended family situations. Vague instructions can lead to confusion and disputes. Platforms like Willfully make this straightforward by guiding you through a simple questionnaire to clearly name your beneficiaries, ensuring there's no confusion about your wishes for your new home.

Appointing an executor: Who manages your estate?

Think of your executor as the project manager for your will. This is the person (or people) you trust to carry out your instructions and make sure everything happens as you intended.

Their responsibilities, especially when a house is involved, are significant. They’ll be in charge of things like:

• Paying off any remaining mortgage and property taxes.
• Handling the legal paperwork to transfer the title.
• Managing the sale of the home if that’s what your will instructs.
• Distributing the proceeds to your beneficiaries.

When choosing an executor, you need someone who is trustworthy, organised, and responsible. It’s a big job, so make sure you ask them first if they’re willing to take it on. It can be a family member, a close friend, or a professional like a solicitor or trustee company.

Naming guardians: Who cares for your children?

For new homeowners who are also new parents, this is a very important decision. If you have children under 18, your will is the only place where you can legally name a guardian—the person you want to step in and raise them if you can't.

If you don't name a guardian, a court will decide for you. While they will always act in the best interests of the children, it might not be the person you would have chosen. This can lead to a long, stressful, and uncertain process for your children and your family at an already difficult time. Taking a few minutes to nominate a guardian in your will provides immense peace of mind.

How to create a legally valid will

Once you've made your decisions, the next step is making them legally binding. In Australia, a will isn't just a signed note, it has to meet specific legal standards to be valid.

Traditional lawyers vs. online solutions

You've got two main paths to get this done:

• Traditional Lawyers: This is the traditional route. You meet with a solicitor who drafts the will for you. It's a thorough option, especially for very complex estates. However, it can be more expensive. A solicitor-drafted will can cost between $500 and $3,000+, and you'll need to schedule in-person appointments, which can be challenging with a busy schedule.

• Online Will Platforms: This is a modern, convenient, and often more affordable alternative. For homeowners with relatively straightforward estates (like a family home, savings, and super), online platforms can be a good fit. You can create a legally valid will from home, often in less than 30 minutes.

Key features of an online will service

Different online will writers offer different features. If you’re entrusting one with the fate of your biggest asset, it's important to choose a reputable service. Here’s what to look for:

• Lawyer Review: This is a key feature. A qualified Australian lawyer should review your completed will to check for any errors or inconsistencies that could cause problems later. It’s an important feature for ensuring your will is legally sound.
• Strong Security: You're inputting sensitive personal and financial details. The platform should use strong encryption, like the AES-256 security used at Willfully, to keep your data safe and private.
• Flexible Updates: Your life isn’t static, especially after buying a home. You might have children, get married, or change your mind about your executor. A good service should allow you to make changes easily and affordably.

For example, Willfully includes these features. The service offers a single will for a one-off fee of $159.99. This price includes a review by a practising Australian lawyer and 12 months of unlimited updates, which can be useful for new homeowners whose circumstances may change.

The signing and witnessing process

This is the final, crucial step that makes your will official. You can't just sign it and tuck it away. According to Australian law, like the "Succession Act 2006 (NSW)", you must follow a strict procedure:

• The will needs to be printed out on paper.
• You (the "testator") must sign it in the presence of two adult witnesses.
• Importantly, your two witnesses cannot be beneficiaries in the will (or be married to a beneficiary). If they are, their inheritance could be voided.
• All three of you must be in the same room and watch each other sign.

Incorrectly completing this step is one of the most common reasons DIY wills are declared invalid by a court. A good online platform will provide clear, step-by-step instructions to make sure you get it right.

What happens if you don't have a will (intestacy)?

If a person dies without a valid will, it’s called dying "intestate." When this happens, the distribution of your assets is determined by law. The government doesn't take your house, but a standard legal formula is used to distribute your assets.

This formula doesn't account for your unique family dynamics or your personal wishes. It can lead to outcomes that may not align with what you would have wanted.

Here's a clear example: Let's say you're in a blended family. You have a new partner and children from a previous marriage. If you die intestate, the law in most states dictates that your partner gets the first slice of your estate, and the rest is split between them and your children. This can often mean the family home has to be sold just to pay out everyone's share. Your partner could be forced to move out, and your children might get a lump sum of money before they're mature enough to handle it.

For de facto partners, the situation can also pose challenges. They may have to prove their relationship to the court to get anything at all, adding stress and cost to an already heartbreaking situation.

Here’s a simple breakdown of the difference it makes:

For a deeper look into how property is handled in estate planning, this video provides some valuable insights on ensuring your wishes are carried out correctly.

Protect your biggest investment with a clear plan

Buying a home is a massive achievement, and it marks the start of a new chapter. Making a will is the final, essential step in protecting that investment and, more importantly, protecting the people you share it with.

It puts you in control, ensures your partner is secure, provides for your children’s future, and saves your loved ones from unnecessary stress and conflict. Estate planning is not just for the elderly or wealthy. It’s for anyone who has assets to protect and people they care about, and that definitely includes new homeowners.

You have worked hard to purchase your home; the final step is to secure it for the future. Creating a legally binding will online can be a straightforward process. To protect your assets, you can get started with a platform like Willfully today.