The second common misconception
Below is a transcript of Lauren Farrelly’s interview with Aaron Stevens of 990 4RO from September 2016.
In this interview Lauren talks about the second common misconception many people have about dying without a Will in Queensland.
That’s right. It’s a really interesting misconception out there because it is simply not the case if you have got family who are able to take the assets. There are some rules in what we call the Succession Act.
They are the intestacy rules, and they are specifically designed to distribute your estate between family in the event that you die without a Will. So if you have a spouse and you have no children then your spouse would inherit the whole of your estate under those intestacy rules.
If you have a spouse and one child then your spouse receives the household effects and the first $150,000.00 and then the balance is split one half to your spouse and the other half to your child.
Now for some people who have got children who are very young, the idea of them receiving a one half of their assets is quite terrifying.
Absolutely, and obviously that causes issues if you have got children from other relationships or children who may not be directly linked to your spouse.
Absolutely, so if you have got multiple children the share that your spouse receives is then dropped down to 1/3 after the first $150,000.00 and the household effects goes to them as well, and the balance 2/3 is split evenly between your surviving children. So that is a very different proposition.
I haven’t met many families at all that that would work for.
It is interesting, I’ve got to say I didn’t realise there was exact figures in place for the division of the estate in that situation. It worries me a little bit that that’s the way it would go because I know that’s not the way I’d want it.
Absolutely and we find that a lot of people once they find out about the rules feel the same way because they want, most of the time, the majority of their estate to go to their spouse in the first instance so their spouse has got control of what they’ve built up together.
I suppose the one thing to remember though is that when we are talking about your estate, it’s only those assets that you have solely in your own name. So it’s not jointly held assets, they’re dealt with slightly differently.
Alright well now you’ve opened our eyes to that, we better make a Will. How do we go about it?
Just give me a call at Rees R & Sydney Jones Solicitors, 4927 6333.