Consequences of not having a Will
It is natural to want to pass on the wealth that has been built up over a lifetime to the next generation. However, the consequences of not having or having a poorly drafted estate plan are numerous and can echo through the generations not just financially, but emotionally.
According to the NSW Government Trustee & Guardian, around 45% of Australians do not have a Will. It has many case studies of situations where this has adversely affected the immediate family and the deceased’s intentions.
Consider the following scenarios:
A man died without a Will. It could not be established that his birth was ever registered and, therefore, next of kin could not be established. His estate worth $180,000 passed to the Government.
An 18-year-old man had been living with his girlfriend for only six months when he died without a Will. The court decided that his girlfriend was his legal de-facto spouse, and she received his entire, substantial estate. The man’s parents received nothing.
In a high-profile example, the death of music legend Prince saw a battle over his (US$70 million) estate play out in the public eye. The lack of a clear estate plan in his case means there will be a large tax bill for the estate. Further, some uncomfortable legal battles lie ahead between his sister and his five half-siblings (Manhattan Ridge Advisors, 2016).
It is important to ensure that wills are up to date.
Kaplan Professional, (2019). “Estate planning: putting the client’s needs first”, 2019, NSW Trustee & Guardian n.d., ‘Wills — Some true stories!’, State of New South Wales (NSW Trustee & Guardian), http://www.tag.nsw.gov.au/case-studies.html, accessed 7 November 2018
