Won’t a Will Kit do the job?
This is one of the most common questions we are asked. People often assume that the law ‘automatically takes care of it all’ when we die. We appreciate that no one wants to deal with their own mortality. However, let us be clear, if you do not have a Will, the consequences for you and your family can be catastrophic.
What happens if I don’t have a Will?
Each Australian State and Territory has statutory rules for distribution of property, which strictly apply when a person dies without an effective Will. Let us look at some common examples:
Example one: a surviving spouse and children who are the children of the surviving spouse
= Total estate to spouse
Example two: a surviving spouse and children who are not the children of the surviving spouse
= The spouse takes:
(a) the personal chattels and effects, plus;
(b) the first $539,100* plus interest on the statutory legacy from the date of death to payment; plus
(c) one half of the balance of the estate; and
(d) the children of the intestate are entitled equally among them to the other half of the balance of the estate
Example three: a spouse and no children
= Total estate to spouse
Outcome
Spouse gets everything irrespective of whether or not the deceased left parents, siblings, nieces/nephews etc., and other relatives
Spouse gets everything irrespective of whether or not the deceased wanted to leave bequests for his or her children
Spouse gets everything irrespective of separation or estrangement
Nb., a spouse includes a ‘domestic partner’ (i.e., individual living with the deceased on a genuine domestic basis for a continuous period of two years immediately prior to their death). So, there is a very real possibility that a ‘domestic partner’ of only two years will receive an entire estate and all other relatives will receive nothing.
What does this mean for you?
Why put your beneficiaries at risk when a properly structured Will can ensure that you estate is left to the individuals and in the manner you choose.
To find out more about preparing a Will and estate plan that meets your succession needs, contact Bartram Lawyers.