You’ve worked hard for your home, and now you’re considering a Reverse Mortgage to make your retirement more comfortable. But here’s a question many seniors overlook: have you created a proper, legally-binding will and updated your estate planning?
If the answer is no, you’re not alone. Many Australians delay estate planning, thinking they’ll “get to it later.” The problem is, without a will, your family could face delays, disputes, or even intervention from government trustees when it’s time to settle your estate and repay the loan.
A Reverse Mortgage can be an excellent way to unlock the equity in your home, but without proper estate planning, it may cause confusion and conflict for the people you care about most. Before you take that next step, it’s vital to ensure your wishes are clear, legally binding, and protected.
More Australians Are Dying Without a Will
According to research, a significant number of Australians still don’t have a valid will. The Australian Law Reform Commission (ALRC) notes that almost 60% of adults have made a will, which means about 40% remain without one.
Similarly, a study by Tilse and colleagues found that 59% of Australians hold a valid will, leaving more than two in five without clear estate planning arrangements. This gap highlights why so many families encounter disputes, delays, and costly legal intervention when estates are settled.
And let’s be honest—this isn’t just a “legal issue.” It’s a deeply personal one. Families who are already dealing with loss suddenly find themselves in conflict with government processes and each other.
[ ALSO READ: Balancing Legacy and Financial Stability: Will a Reverse Mortgage Affect My Kids’ Inheritance? ]
Why DIY ‘Will Kits’ Can Cause More Harm Than Good
In the digital age, it’s tempting to think a cheap online DIY Will kit is enough. Unfortunately, many seniors are learning the hard way that these documents often don’t hold up in court.
Here’s why:
- A legally binding will must be signed in front of two independent witnesses. Miss that, and the document can be challenged.
- Superannuation isn’t automatically covered by your will. Without a binding nomination filed with your super fund, your wishes may be ignored.
- Blended families complicate matters further. If you have children from a first marriage and a second spouse, disputes are almost inevitable unless your will is crystal clear.
As one estate lawyer put it, DIY wills often create more “uncertainty, confusion, and conflict” than they resolve.
The Rising Stakes: Bigger Estates, Bigger Disputes
Today’s estates aren’t just about the family home anymore. Factor in superannuation balances, life insurance policies, and rising property values, and suddenly we’re talking about hundreds of thousands—or even millions—of dollars being passed on.
When that kind of money is on the table, people are more likely to contest a will, even if the deceased’s wishes seemed clear. And because legal costs haven’t risen as fast as estate values, challenging a will has become a more attractive option for would-be beneficiaries.
For families, this often means years of disputes, fractured relationships, and dwindling inheritances eaten up by lawyers’ fees.
Where Reverse Mortgage Fits In
So, what does all this have to do with a Reverse Mortgage?
Plenty…
A Reverse Mortgage is a loan that allows seniors to unlock equity in their home while continuing to live in it. It can be an excellent tool for funding retirement, covering healthcare expenses, or simply improving quality of life. But here’s the thing: when the loan term ends—usually when you pass away or move into aged care—your home will likely need to be sold to repay the debt.
That’s where estate planning comes in.
If your will isn’t clear—or worse, if you don’t have one—your family could face:
- Delays in probate, which can delay the repayment of the loan.
- Higher interest costs, and less equity for beneficiaries. REMEMBER: the longer it takes to repay the loan after the last surviving borrower passes away, the higher the potential the interest bill payable to the lender from the sale of the house. If your affairs are in poor order, this can add stress to family members during an already emotional time.
- Disputes over property ownership, especially in blended families.
- The involvement of state trustees, who can drag out the process and reduce what’s left of the estate.
In short: without a valid, up-to-date will, you could unintentionally create financial headaches for your loved ones instead of providing the support you intended.
(Alternatively, you can also use a Reverse Mortgage to unlock home equity and release funds for children or grandchildren now, providing an advance on the inheritance they will receive in future)
[ ALSO READ: ‘Living Inheritance’: Why More Parents Are Helping Kids With Reverse Mortgage Funds ]
The Seniors First Approach: Financial Security Meets Family Harmony
At Seniors First, we help older Australians access the wealth tied up in their homes through Reverse Mortgage solutions. But here’s what we know: a financial product is only as strong as the plan that supports it.
That’s why we always encourage clients to:
- Write a legally binding will. Don’t rely on DIY kits—see a lawyer who specialises in estate planning.
- Update your will regularly. Life changes: new marriages, grandchildren, property purchases. Make sure your will reflects today’s reality.
- Check your superannuation nominations. A will alone isn’t enough; super requires a binding nomination.
- Have the tough conversations now. Talk to your loved ones about your plans. It reduces conflict later.
Conclusion: Protect Your Legacy
There’s an old saying: “Where there’s a will, there’s a way.” Sadly, too many Australians are proving the opposite true—without a will, there’s only delay, dispute, and disappointment.
If you’re considering a Reverse Mortgage, make sure your estate planning is sorted first. That way, you can enjoy the benefits of unlocking your home’s equity, knowing that your loved ones will be protected when the time comes.
At Seniors First, we’re here to guide you through the process—helping you not just access financial freedom today, but also secure peace of mind for tomorrow.
Call us on 1300 745 745 or CLICK HERE to check your eligibility.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Please consult a licensed financial advisor and a solicitor before you make any decision.