Intestacy

"Intestacy" is when someone dies without a valid will. As an estate lawyer I've heard numerous times over the years, and I'm sure you've probably heard it too, that "the government will get all your money if you die without a will". While this can be the final result, it's highly unlikely (I have never seen it happen in 10+ years of practice).

In fact, there's a long list of people who stand to inherit from an intestate estate. Here's a general overview of the provisions of the Administration & Probate Act 1958 (Vic):

  1. Partner and no children? All to the partner.

  2. Partner and children of that partner? Still, all to the partner.

  3. Partner and children who don't belong to the partner? Now is when it starts getting complicated. There's a set amount, called a "statutory legacy" (it's currently somewhere above $450,000), that the partner receives. The partner also receives all personal items, and half of the residue (i.e. whatever is left over). The kids get the other half of the residue.

  4. More than one partner, but no children? Shared between the partners.

  5. More than one partner, and children of one or more of those partners? Shared between the partners.

  6. More than one partner, and at least one child not belonging to one of those partners? Imagine those family dinners, now we're getting really complicated! The partners get the personal items and the statutory legacy amount shared between them, plus half of the residue. The kids get the other half of the residue.

  7. No partner, but kids? All to the kids.

  8. No partner or kids? All to the parents (or parent, if only one surviving).

  9. No partner, kids or parents? All to the siblings (whether full or half).

  10. No partner, kids, parents or siblings? All to the grandparents.

  11. No partner, kids, parents, siblings or grandparents? All to the aunts and uncles. If all aunts and uncles are deceased but there are surviving cousins, then the cousins take everything.

  12. No partner, kids, parents, siblings, grandparents, aunts, uncles or cousins? This is when the government gets it.

[Note that this doesn't take into account what happens if a beneficiary dies but leaves children - that is beyond the scope of this outline. However, note that special provisions are included in the legislation, and if you are facing administering an intestate estate you should ensure you provide full details of all family members, living and dead, to enable proper distribution of the estate.]

If you're reading this list and thinking you'd rather see your money go to the Lost Dogs Home than your spoilt cousin, consider this a reminder to get your will in order! Click here to start the process now.