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If you don’t make a Will everything could go to the Government
If you die without a Will the law sets out how your Estate will be divided, regardless of what you or your family might want. This is what happens:
- If you have a spouse or partner but no children or parents, the whole Estate goes to the spouse or partner.
- If there is a spouse or partner and children, your spouse or partner receives all personal chattels plus the first $155,000, plus one third of the remainder. The children share two thirds of the remainder.
- If there are children but no spouse or partner, the whole Estate goes equally to the children.
- If there are parents but no spouse, partner or children, the whole Estate goes to the parents.
- If there is no spouse, partner, children or parents then the whole Estate passes to certain blood relatives i.e. brothers, sisters, grandparents or aunts and uncles.
- If there are no blood relatives as above then the whole Estate goes to the Government.
There are other disadvantages if you don’t leave a Will.
- The process of having an Administrator appointed is more complicated and takes much longer. For example, it is a requirement that a search be made for any illegitimate children, and that extensive enquiries are undertaken to try to find a Will. This greatly increases administration costs.
- Where there isn’t a Will, the High Court must appoint a single Administrator. If there is more than one person with a right to apply, eg several siblings, they must agree on who the Administrator should be. In a divided family agreement might be very difficult and this can cause long delays and further expense.
All these disadvantages can be very simply avoided by making a Will. Weighed against the peace of mind obtained, the relatively small amount you need to invest in getting a Will done is great value.