What are the consequences of dying intestate in Australia?
In Australia, when a person dies without a clear and valid will, the law dictates how their assets are distributed. This situation is known as "intestate death". Unfortunately, the distribution of assets in cases of intestate death does not take into account the personal preferences or particular circumstances of the deceased.
Guide to Distribution of Estates on Intestate Death
Normally, the nearest relative of the deceased person, such as a spouse, domestic partner or child, is required to apply to the Supreme Court for a Letter of Authority for the Administration of the Estate. If the deceased had a partner, the partner will inherit all of the estate. However, if the deceased had children with other partners, the children of the other partners, in addition to the current partner, may receive a share of the estate, provided the value of the estate is more than $500,000 after deducting all outstanding payments and funeral expenses.
If the deceased had multiple partners, the distribution of this estate can be even more complicated.
There are children, but no partner: in this case, the inheritance is distributed evenly among the children.
No partner or children: the estate is distributed in a specific order, starting with parents, then siblings, followed by grandparents, then aunts and uncles and finally cousins. The Government inherits only if there are no surviving relatives.
De facto marriage partner: A de facto relationship indicates an unmarried couple living in a marriage-like relationship. This definition applies to both same-sex and opposite-sex couples. De facto partners must have cohabited for at least two years, have a child together, or formally register their relationship in order to inherit.
It is important to consult with a legal professional when considering estate planning or thinking you may be entitled to someone's assets. A valid will can ensure that assets are distributed according to your wishes. With over thirty years of experience in writing wills, Chua, Hing Wai & Associates can help draft a valid will, pleaseclick hereLearn more, orContact UsOffice. Address Level 2, 262 Queen Street, Melbourne 3000, Phone 96023988