No, a spouse does not automatically inherit everything in Australia if you pass away without a valid will.
While spouses are often given priority in inheritance laws, the outcome depends on factors such as whether you have children, stepchildren, or other surviving family members.
Understanding how these laws apply can help you plan your estate effectively.
What Happens If You Die Without a Will?
When someone dies without a valid will, their estate is distributed according to intestacy laws.
In Australia, these laws vary slightly between states and territories, but the general principles are similar.
If you die intestate (without a will), your spouse will usually inherit a significant portion of your estate.
However, they may not automatically receive everything, particularly if you have children from a previous relationship or other surviving family members.
Key Takeaway: Without a will, your spouse may not receive your entire estate, especially if you have children or other close relatives.
How Is Your Estate Distributed Without a Will?
The distribution of your estate depends on your family situation. Common scenarios include:
1. Spouse Only (No Children or Other Relatives)
If you are married or in a de facto relationship with no children, your spouse will typically inherit your entire estate.
2. Spouse and Children (All Children from the Same Relationship)
If you have children with your spouse, your spouse will generally inherit your entire estate.
3. Spouse and Children from a Previous Relationship
If you have children from a different relationship, your estate will usually be divided. Your spouse may receive a set portion of the estate (which varies by state) plus a share of the remaining assets. The remainder is then divided among your children.
4. Spouse and Other Surviving Family Members
In some cases, if you have no children but other surviving relatives (such as parents or siblings), they may receive a portion of your estate alongside your spouse.
Key Takeaway: The presence of children, stepchildren, or other relatives can impact how your assets are distributed.
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What Happens to Jointly Owned Property?
Assets that you own jointly with your spouse — such as a home or joint bank accounts — typically pass directly to your spouse. This occurs outside of the estate and isn’t governed by intestacy laws.
For example, if you own a home as joint tenants, your spouse will automatically inherit your share of the property.
However, if the property is owned as tenants in common, your share becomes part of your estate and is distributed according to intestacy rules or your will.
Key Takeaway: Jointly owned assets often pass directly to your spouse without the need for legal intervention.
What About Superannuation and Life Insurance?
Superannuation and life insurance policies are generally not covered by your will unless you have nominated your estate as the beneficiary.
Instead, these funds are distributed based on your nominated beneficiary or the superannuation fund’s discretion.
If your spouse is listed as your beneficiary, they will receive your superannuation or life insurance payout directly. Without a valid nomination, the fund trustee may decide how these benefits are distributed.
Key Takeaway: Superannuation and life insurance are not automatically included in your estate, so it’s important to nominate beneficiaries.
De Facto Partners and Inheritance Rights
In Australia, de facto partners generally have the same inheritance rights as legally married spouses.
To qualify as a de facto partner, you must typically demonstrate a committed relationship and evidence of shared finances, property ownership, or joint responsibilities.
If your relationship isn’t legally recognised, your partner may need to provide additional proof in court to claim their inheritance.
While a spouse often inherits a significant portion of your estate, they do not automatically receive everything in Australia if you die without a will.
Factors like children from previous relationships, shared assets, and nominated beneficiaries all influence how your estate is divided.
By preparing a clear and legally valid will, you can ensure your spouse receives what you intend.