Smith Wealth Smith Wealth

Why make a Will?

Why make a Will?

– To ensure your assets are transferred to beneficiaries of your choice.

– To appoint an executor of your choice

– Minimise:



-Likelihood of disputes

– If you do not make a Will, you die intestate

– More than one third of Australians who die each year die intestate

What happens if you die intestate?

  • Your estate is distributed according to State legislation.  You don’t have a choice.
  • Who gets what?

– Spouse only – if estate greater than $75,000.00 then spouse gets that + half the residue.  The other half is split between siblings and parents.

– Spouse and child – spouse gets first $50,000.00 plus personal chattels, and the balance is divided into thirds, with two thirds to the children and the remaining one third to the spouse.

Intestacy – some issues

_   Step children not entitled to share

_   Same sex partners can now benefit

_   De facto’s can now benefit

_   Separated partners can claim even if living apart

_   Divorced spouses cannot claim

_   Adopted children can claim from adoptive parents but not biological parents


Intestacy – actual case

– John                                              – Kate

(employed builder)                      (Chartered accountant)

– Susan

(estranged daughter)


– Kate has asset protection issues

– All assets in John’s name solely

– John dies intestate


The Assets

Home at Peppermint Grove:               $3,000,000

Pemberton Holiday House:                 $300,000

Shares & Other:                                 $700,000

Total:                                                $4,000,000

The Result


first $50,000+                                      $50,000

Personal chattels +                             $50,000

One third of balance of estate            $1,300,000



two thirds of balance of estate            $2,600,000

Total                                                  $4,000,000


Had John bothered to complete a Will the result would have no doubt have been quite different. Kate has missed out big time, all because John thought it couldn’t happen to him!

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