Will disputes have been on the rise for some time. Some of the reasons put forward include the growth of wealth being accumulated (and thus potentially passed on by way of inheritance) of older generations, and changes in family dynamics such as the rise of the blended family. These issues and their impact in the estate contestation space have been the topic of a recent article in the Financial Review (see link here titled Succession: Warring families undermining $3.5 trillion of inheritances (afr.com)), who observe that the value of wealth is only expected to increase.
What kinds of estate or Will claims can arise?
Disputes can arise surrounding the validity of a will. This could involve allegations that the deceased did not know what they were signing, did not have capacity to make a Will, or were subject to undue influence or pressure to make a Will. A Will could also be challenged where it does not conform with legal requirements for a valid Will. A challenge to the Will can lead to an estate contest, which can impact how a person’s wealth is distributed.
A family provision claim is another kind of claim on a deceased estate. These are made on the basis that the will maker did not adequately provide for a person to whom they had a moral obligation to provide for. The law differs across the States and Territories, but they are often made by a spouse, partner or children. Claims can also sometimes be made by dependant grandchildren or stepchildren. These types of claims have become more prevalent with the increase in the number of blended families, such as where parents have re-partnered and have children to a previous relationship.
It is important that legal advice is sought, to consider any potential claims and how best to protect your assets, so a comprehensive and tailored planning strategy is put in place.
What planning is important for protecting wealth?
There are a few crucial areas to consider when looking to future-proof your assets for the next generation. One issue is estate planning. For example, preparing a Will which effectively deals with your estate and additional documents, such as a statement which explains reasons for provisions in your Will, is important to ensure your wishes are known and, if no successful dispute arises, that your estate passes the way you wish.
Other important planning strategies can also include succession provisions for businesses, companies, and trusts. It is also important to consider superannuation, including your self-managed super fund, and any updates which may be appropriate, for example a binding death benefit nomination in a recommended form. Failure to implement effective planning mechanisms can have significant implications, including contested estates.
How can we help?
If you would like to discuss your estate planning and succession strategy, or are looking at a potential Will dispute or estate contest, our estate specialists in the Private Wealth Law team at Chamberlains can assist you.
If you have any questions or concerns please contact our Private Wealth Director Ashleigh Blewitt on 02 6188 3600