Intestacy: dying without a Will leaving a de-facto partner, ex-spouse and child from previous relationship.
If you die without a Will, a statutory formula is used to determine how your assets are distributed. Consider the following scenario…
Karen died without a Will and left her de-facto partner Paul. Karen also left a child Chloe from her previous marriage with Mark (now divorced). According to the statutory formula:
1. Paul will be entitled to Karen’s personal effects, statutory legacy ($350,000 CPI adjustments) and one-half remainder (if any) of Karen’s estate;
2. Chloe will be entitled to the remaining part of Karen’s estate after Paul’s entitlement has been taken out; and
3. Mark will not be entitled to receive any of Karen’s estate.
Having a Will in place may provide you with a number of advantages, e,g, you may:
– Choose an executor whom you trust to administer your wishes;
– Specify how you would like your assets distributed;
– Specify the time when your beneficiaries receive their benefit (e.g. upon reaching the age of 18);
– Appoint a guardian who will care for your children;
A properly draft Will may also provide the following benefits:
– Reduced tax liability for your beneficiaries;
– Greater protections on inheritance (e.g. if a beneficiary becomes bankrupt or involved in a relationship breakdown);
– Your family will not be burdened with the more expense alternative of administration if you don’t have a Will.
The lawyers at Matthews Folbigg Parramatta can provide legal advice and assistance in drafting a Will or update your existing Will. We specialise in estate planning, Wills and superannuation. Don’t wait until it’s too late, contact us today.
Phillip Brophy – phillipb@matthewsfolbigg.com.au or 9806 7490
