Australians are inheriting more than ever, with annual intergenerational wealth transfers growing from $24 billion in 2002 to $52 billion in 2018. With more at stake, courts are seeing more wills challenged, often by adult children. Increasingly complex family structures, such as blended families, are adding to the risk of conflict. Even families with a history of harmony may find that the grieving process heightens tensions and fosters suspicions. Some estimates suggest up to 70% of wealth transfers fail due to disputes or poor execution.

To help avoid these issues, consider the following estate planning tips:

1. Communicate early – Share your intentions with family to avoid misunderstandings. A family discussion, though uncomfortable, can reduce the risk of future disputes.

2. Be fair, or explain clearly – Equal distributions often feel more just, but if you choose to give more to one child, perhaps due to previous support or medical needs, explain your reasoning in person and in writing.

3. Keep your will current – Update your will after key life events like births, deaths or marriages, and ensure your executor and lawyer have access to the latest signed version.

4. Consider a testamentary trust – Trusts can manage distributions according to your wishes, reduce tax, and protect assets from claims (such as by a child’s ex-partner). They can also preserve family assets like holiday homes.

5. Be specific and clear – Ambiguities in your will can lead to confusion and conflict. Clearly outline how both financial and sentimental items should be distributed.

6. Get expert advice – Work with a solicitor or estate planning expert to make sure your will is legally sound. If you’re a trust beneficiary, note that tax rules changed in 2024, so seek accounting advice.

Finally, ensure your estate plan covers more than just your will—superannuation and insurance nominations should be reviewed and aligned with your overall intentions.

For more information on estate planning, please visit our Estate Planning page or contact us to speak to an adviser.