People who die without a valid will risk leaving their families facing disputes, delays and financial strain, an estate-planning expert has warned. Adam Lubofsky, founder and chief executive of Safewill, said Australians “almost certainly” need a will, and “probably sooner than you think”.
A will can set out what should happen to a person’s possessions, name guardians for children and appoint someone to manage their affairs after death.
Without one, however, the estate is dealt with under the intestacy rules of the relevant state or territory. “If you die without a valid will, you don’t get a say in what happens to your estate. The law does,” Mr Lubofsky said.
There is also no executor to take responsibility for the administration. A family member must instead apply to the Supreme Court for Letters of Administration before dealing with the estate, a process Mr Lubofsky said was usually slower and more stressful than ordinary probate.
Why dying without a will can lead to family disputes
Family conflict is said to be the most common problem arising when no will has been made. Research commissioned by Safewill found that more than half of Australians from blended families were at risk of a will dispute.
Step-parents, step-siblings and new partners can create competing expectations about how an estate should be divided. “There are simply more people with a stake in the outcome, and more room for very different ideas about what’s fair,” Mr Lubofsky said.
He added that the complexity was something many families did not consider “until it’s too late”.
The consequences have been illustrated by high-profile estates. Prince died in 2016 without a will, prompting a six-year legal battle involving his six siblings and people who claimed to be relatives. Millions of dollars were spent on legal fees and administrative costs before an agreement was reached over his estate, valued at 156 million US dollars.
Aretha Franklin’s estate also became the subject of a lengthy family dispute after her death in 2018. Several handwritten wills were later found in different places, including sofa cushions and cabinets, leading to years of court proceedings between her four sons over which documents were valid and how her assets and royalties should be divided.
“When there’s no will, there’s nothing to point to and settle the argument,” Mr Lubofsky said. “That’s often when relationships break down for good, at exactly the point families need each other most.”
Cost, accessibility and a lack of knowledge can all deter people from making a will, but research cited by Safewill found procrastination was the leading reason. Mr Lubofsky said the emotional difficulty of formally contemplating death also prevented many people from beginning the process.
Safewill is offering people the opportunity to write a will online for free until September 21, with each document reviewed by its legal team. Mr Lubofsky advised those without a will not to overthink the process, saying an online platform could guide users through questions so important details were not missed.
