04/04/2022
INTESTACY - Amendments to the Administration Act
'Intestacy' is where a person passes away without a will.
The legislation covering this area sets out a complex set of rules under the Administration Act which are designed to provide for the distribution of the estate in the absence of a will, which in most cases will involve a distribution primarily between the deceased's spouse and, where applicable, children. If there is no spouse or children, then the assets are distributed to the relatives listed in the legislation.
Currently, the legislation provides that where someone dies and leaves a spouse and no children, then the spouse receives the first $75,000 of the estate and thereafter the balance of the estate is and one half of the residue to the spouse and the other half to any surviving children.
The State parliament has recently passed legislation which will come into effect in the near future giving the spouse the first $400,000 of the estate and otherwise leaving one half to be divided equally between the spouse and the other half to the deceased’s children.
If there are no children then the spouse can receive the first $750,000.
This recognises the inequity arising from the threshold remaining unchanged for many years.
This highlights the need for a person to do a will to ensure that if they don't want all or most of their estate to go to their spouse, and to consider their options about how they want their assets to be distributed after they pass away.
Please note that here, 'spouse' includes a de facto spouse, a same s*x relationship and a spouse under marriage.
Also note that both marriage and divorce revoke a will and will generally require someone to do a fresh will.
Please contact our office to discuss what you may wish to do, or follow this link to find out more: https://andrewlynnlawyer.com.au/project/wills-and-probate/
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