When considering your future and protecting your loved ones, creating a will is one of the most important legal documents you’ll ever prepare. But what exactly happens if you pass away without one? Understanding the implications can help you make informed decisions about your estate planning.
In New South Wales, if you die without a will, you’re considered to have died “intestate” (not to be confused with “interstate”). This means your assets won’t be distributed according to your personal wishes, but instead follow a strict legal formula under the Succession Act 2006 (NSW).
How NSW Law Distributes Your Assets Without a Will
When someone dies intestate, NSW’s Laws of Intestacy determine who inherits what, following a specific hierarchy:
If You Have a Surviving Spouse
If you have a spouse (including a de facto partner), they will typically receive your entire estate. This provides some protection for your closest relationship, but may not reflect more complex family dynamics.
If You Don’t Have a Surviving Spouse
Your assets pass to relatives in this exact order of priority:
- Your children
- Your parents (if you have children)
- Your siblings (if no children and parents are deceased)
- Your grandparents (if no children, parents, or siblings)
- Your aunts, uncles, and cousins (as a final option)
Complex Family Situations Create Complications
The situation becomes significantly more complex if you have children from multiple relationships. Under Section 113 of the Succession Act 2006 (NSW), if you die leaving both a current spouse and children from a former relationship, your estate is split as follows:
- Your spouse receives your personal effects, plus a statutory legacy (currently approximately $575,000), plus half of any remaining assets
- The other half of remaining assets goes to your children from previous relationships
This formula, while legally sound, often doesn’t reflect what people actually want for their families.
Additional Challenges When You Die Intestate
No Appointed Executor
Without a will, there’s no formally appointed executor to manage your estate. Usually, the major beneficiary takes on this responsibility, but the absence of clear direction can significantly complicate estate administration.
Court Applications May Be Required
If a Grant of Letters of Administration is needed from the Supreme Court, the process becomes more complex, time-consuming, and expensive for your loved ones during an already difficult time.
Why Even Simple Estates Need a Will
While NSW’s intestacy laws provide a logical framework for asset distribution, they cannot account for your unique family circumstances or personal intentions. Even if you believe you have modest assets and a straightforward family situation, having a properly prepared will ensures:
- Your assets pass exactly as you intend
- Your estate administration runs smoothly
- Your loved ones face fewer complications during grief
- You maintain control over important decisions affecting your family’s future
Take Control of Your Estate Planning Today
Don’t leave your family’s financial future to chance or legal formulas that may not suit your circumstances. At Complete Legal, we help Penrith families create clear, comprehensive wills that protect their loved ones and provide peace of mind.
Ready to ensure your wishes are properly documented? Contact Complete Legal today to discuss your estate planning needs. Our experienced team will guide you through the process in plain English, ensuring your will reflects your intentions and complies with NSW legal requirements. Book your consultation now and take this important step in protecting your family’s future.
