No will? What happens?
When someone passes away without a valid will, this is known as intestacy. In this situation, the law in each state and territory sets out a formula for how your estate is divided. These rules often follow a standard order, spouse first, then children, then other relatives, but they may not align with what you would have wanted.
Who usually inherits the intestate estate?
If you have a spouse and no children, your spouse will ordinarily receive the whole estate. If you have a spouse and children, whether the children receive anything depends on whether they are also the children of your spouse, as well as the laws of your state.
If you do not have a spouse or children, your estate may pass to your parents, then to siblings, and then to the next of kin, but this can vary between states.
If there are no surviving and eligible relatives, the state you live in will typically receive the estate.
Family provision
Note that even when an estate is distributed under intestacy laws, certain family members or dependants may still be able to apply to the court if they feel they have been left without proper provision. These are called family provision claims.
Eligible people, typically a spouse, partner, child, or someone dependent on the deceased, can ask the court to adjust the distribution. This process is separate from intestacy and can apply whether or not there is a will.
Exceptions to intestacy laws
Your super fund may decide which of your eligible beneficiaries receives your super, or it may pay the benefit to your estate. If your super fund allows for binding death benefit nominations, you can direct payment to an eligible beneficiary.
Life insurance payouts on policies you personally own can also be directed in accordance with your wishes and may not necessarily form part of your estate.
Remember jointly-owned property typically passes to the surviving joint owner.
Estate administrator
Who handles the paperwork if there’s no will?
Instead of an executor named by you, the court appoints an administrator. This is often your partner or next of kin, who will collect assets, pay the estate’s debts and expenses, and then distribute the balance under the local intestacy law. Administrators step into a formal legal role and their authority begins once the court makes the grant.
Funeral and burial arrangements
One of the most pressing questions after a death is who decides on funeral arrangements. If there is no will appointing an executor, the right to organise the funeral and burial usually follows the same order as for administering the estate. It lies with the person who has the highest claim to be the administrator, typically the surviving spouse or de facto partner, or if none, the next of kin.
KEY POINT
Dying without a will means giving up control over who manages your estate, who inherits from it, and even who decides on your funeral arrangements. While intestacy laws provide a safety net, they may not reflect your personal wishes or the needs of your loved ones. Making a valid will ensures your estate is handled the way you want and spares your family unnecessary uncertainty and stress.
Need advice about creating a will?
Dying without a valid will can leave important decisions about your estate in the hands of state legislation rather than your own intentions. Intestacy rules, family provision claims, and the treatment of super and jointly owned assets can all lead to outcomes you may not expect.
If you do not have a current will, or if your circumstances have changed, speak with us about reviewing your estate planning arrangements. Taking action now can help ensure your assets are distributed according to your wishes and provide clarity and certainty for your loved ones.
For practical and professional guidance across superannuation, accounting, taxation, business advisory and financial planning, contact Stratogen Accounting. Based in Noosa, our experienced team of accountants and business advisors support clients throughout the Sunshine Coast and Australia-wide. From tax compliance and bookkeeping to strategic planning, risk management and long-term wealth creation, Stratogen is here to strengthen your financial position and support your success.