Estate Planning, Intestacy
Planning your estate is crucial, and one of the most important aspects of this is having a valid Will. A Will ensures your assets are distributed according to your preferences after you pass away. However, if you die without one in New South Wales, the process becomes more complicated.
What Happens if You Die Without a Will in NSW?
If someone dies without leaving a Will in NSW, they are considered to have died intestate. In such cases, the Succession Act 2006 (NSW) dictates how their estate is managed. This Act establishes a predetermined order for distributing the deceased's estate, which might not reflect their personal wishes.
How Are Assets Distributed When There’s No Will?
The intestacy rules in New South Wales follow a structured sequence for distributing assets:
Surviving Spouse or Partner: If the deceased has a spouse or de facto partner, they generally inherit the estate. However, if there are children from a previous relationship, the estate is divided differently. The spouse or partner receives personal belongings, a CPI-adjusted a statutory legacy, and half of the remaining estate. The other half is allocated equally among the surviving children.
Children but no spouse: If there are only surviving children and no spouse, the children are entitled to the whole of the estate in equal shares. Where a child has died before the deceased, the children of the deceased’s child will inherit their share.
No Spouse or Children: If there is no surviving spouse or children, the estate is passed to other relatives in the following order: grandchildren or great-grandchildren, parents, siblings, grandparents, aunts and uncles, and cousins. If no eligible relatives are alive, the estate goes to the State of New South Wales.
Who Manages the Estate When There’s No Will?
In the absence of a Will, the Supreme Court of New South Wales appoints an administrator to handle the estate. This person is usually the person entitled to receive the estate. An administrator is responsible for managing the deceased's assets, settling any outstanding debts, and distributing the estate as per the Succession Act. To become an administrator, one must apply to the Supreme Court for Letters of Administration.
Why It’s Important to Consult an Estate Planning Lawyer
Dying intestate can lead to confusion and potential disputes among family members, which can be costly and time-consuming. Intestacy laws might not consider your specific wishes, potentially resulting in unintended beneficiaries receiving your assets. Engaging an experienced estate planning lawyer ensures that your Will is legally valid and accurately reflects your intentions, thus minimising complications for your loved ones.
In Summary
Intestacy laws do not cater to personal preferences or specific wishes for your estate. To ensure your assets are distributed according to your desires and to avoid leaving your family in a difficult position, it is wise to seek professional advice for creating a Will.
At Dormer Stanhope Lawyers, our team of expert solicitors can help you design a comprehensive estate plan that meets your needs and wishes.
If you are a family entitled to receive under intestacy, our team can also help with your application for Letters of Administration.