Did You Know Approximately 48% of Australians Pass Away Without A Will?

Written by Shara Cox

Recent research by the ABC suggests that around 48% of Australians pass away without a valid will, meaning they die intestate. When this occurs, the law determines how their assets are distributed, rather than the individual’s own wishes.

While it may seem like something that can be dealt with later in life, dying without a will (or with an outdated or invalid one) can create significant complications for the loved ones left behind. Intestacy may result in delays, additional legal costs, and unnecessary stress during an already difficult time.

According to reporting by ABC News, lawyers are increasingly warning Australians to ensure their wills are not only created, but also kept up to date. In some cases, families have discovered wills that were decades old and no longer reflected their circumstances - leaving beneficiaries unlisted and estates tied up in lengthy legal processes.

Even when a will does exist, problems can arise if it no longer reflects the person’s current life situation.

When Wills Don’t Work as Intended

A will may fail to operate as expected for a number of reasons, including:

  • The will did not properly dispose of all assets

  • It was not signed or witnessed correctly under legal requirements

  • The person did not have the required mental capacity at the time it was written

  • The will was drafted poorly and does not align with legal rules governing estate planning

An outdated will can create similar challenges. Life changes such as marriage, divorce, children, property purchases, or changes to superannuation can all mean that an older will no longer reflects your wishes.

In some cases highlighted by the ABC, families have discovered wills written decades earlier where the named beneficiaries had already passed away, creating confusion and lengthy legal processes to determine who should inherit the estate.

The Risks of DIY Will Kits

With many inexpensive will kits available online and at local newsagents or post offices, it can be appealing to prepare your own will. While these kits may appear straightforward, they are generally designed for very simple situations and may not properly address more complex personal or financial circumstances.

Issues can arise when important areas are not clearly explained or considered. This can lead to mistakes that may create uncertainty or even render the document invalid.

Some of the common concerns identified with DIY wills include:

  • Little or no guidance around taxation or superannuation considerations

  • Instructions that may be unclear or easy to misunderstand

  • Important matters, such as guardianship of children, not being properly addressed

  • Witnessing requirements not being followed correctly, which may affect the validity of the will

In addition, many DIY kits do not allow for more sophisticated estate planning structures, such as testamentary trusts, which can play an important role in protecting assets or managing tax outcomes for beneficiaries.

Don’t Forget About Superannuation

Another important consideration is superannuation.

In Australia, super is generally not automatically covered by your will. Unless a valid binding death benefit nomination is in place, the trustee of the super fund may decide who receives the benefit, which may not align with your intentions.

This is why estate planning often requires coordination between your will, your superannuation nominations, and your broader financial structure.

The Value of Professional Advice

By working with an estate planning professional alongside your financial adviser and accountant, you can significantly reduce the risk of leaving behind a partial or fully intestate estate.

Professional advice can help ensure that:

  • Your will is legally valid

  • All assets are appropriately considered

  • Superannuation and insurance structures align with your wishes

  • Tax implications are understood

  • Complex family situations are properly addressed

When Should You Review Your Will?

A good rule of thumb is to review your estate planning every five years, or whenever a significant life event occurs, such as:

  • Marriage or separation

  • The birth of a child or grandchild

  • Purchasing property

  • Changes to financial circumstances

  • Starting or selling a business

Keeping your estate plan current can provide peace of mind that your assets will be distributed according to your wishes and reduce the administrative burden on your loved ones during an already emotional time.

If you would like assistance reviewing your estate planning arrangements, please feel free to get in touch.

Jenni Anderson