I don’t have many assets, so I don’t need a will.

I am just so busy, I can deal with it later…

My spouse automatically gets all my assets, right?

I am an immigrant but already have a valid will from my previous country of residence…

Does it sound familiar?

Look at the following examples:

Example A:

• A young couple, Bruce and Sheila, gets married and they buy a house.
• Bruce however, shortly thereafter, tragically dies in a car accident before they have any children.
• Sheila discovers that her late husband Bruce never made a will.
• Sheila’s lawyer informs her that in terms of theAdministration Act she inherits only part of Bruce’s estate as she shares the estate with Bruce’s surviving parents, brothers and sisters.

In this scenario, if the house was only in Bruce’ s name or held by them as tenants in common, then it will have to be sold if there are not sufficient funds in Bruce’s estate to pay all the heirs their shares.

Example B:

• However, if Bruce and Sheila held the house as joint tenants, then the house would not form part of Bruce’s estate and Sheila will automatically become the sole owner of the house.

Example C:

• If Bruce and Sheila had two children, she would have inherited the first $50 000 and the household chattels.
• The residue of the estate will be divided one third to Sheila and the other two thirds equally between her two children.

Consequently it is clearly wise to make a will to deal adequately with your affairs and to make sure your estate is divided according to your wishes and not according to a pre-determined formula as set out in the Administration Act, which can have undesired results, as illustrated by the above examples.

Estate planning is paramount from the beginning, especially before buying major assets like your primary residence. Undoubtedly, Sheila and Bruce from our example would have been well advised to buy the house as joint tenants, especially if their wills have not been in place.

You too should have a valid will, no matter how big or small your estate is.

It is also prudent that you consult your lawyer before buying a property to determine what type of property ownership fits in best with your overall estate plan and your unique circumstances.

It is further recommended that if you have assets in Australia AND in a foreign country, to make a will in Australia to deal with your Australian assets and another will in the foreign country to deal with your assets there.

So speak to our experienced team at LAWMAX Legal as soon as possible to obtain or update your will and spare your loved ones the heartache of having to deal with unnecessary complications when you pass on.