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An estate of an individual is a legal aspect that holds assets, rights, interests, and obligations. Upon the death of the individual, the estate cannot cease to exist and has to be transferred to beneficiaries.
The property the deceased person is entitled to, after eliminating any liabilities in the form of debts and shares, is distributed according to the instructions of the individual’s will. However, if this route is not possible, then the entire estate is subjected to intestacy laws in Perth.
Under the Wills Act 1970, any individual can draft a will with the help of an estate planning lawyer and appoint an executor to distribute their assets upon death. However, there are several instances when the proper administration of the estate cannot be carried out without the intervention of the court.
If the individual never made a will providing instructions on how to distribute their assets and nominate beneficiaries, the entire estate will be distributed according to the statutory orders included regarding intestacy. This condition also applies if any previous will was revoked due to the individual destroying the will with intent or due to the act of marriage, and no new will was made.
Intestacy will apply if a will drafted with the help of estate planning lawyers Perth exists, but it is proven in court that it is legally invalid. Such instances include if it was not appropriately signed, the testator was under undue influence or lacked the mental capacity or if there was fraud.
According to wills and estate lawyers, intestacy can apply partially even if a will exists. This happens when the instructions in the will don’t cover all assets, or a beneficiary entitled to a property dies before the testator. If the testator also acquired any new asset that they were unable to mention in the will, the intestacy laws will apply to that asset.
The Administration Act 1903 (WA) states that, in order to transfer ownership or have a right to an individual’s estate after their death, Letters of Administration are mandatory from the Supreme Court of WA. Hence, if the above conditions are valid, the following rules of property distribution apply to an intestate estate in Perth:
The intestacy rules of Western Australia state that if the property net value of the intestate is lower than $472000, then the surviving spouse or the de facto partner, who meets the requirements under WA laws, is entitled to the whole property. However, if the net value of the estate exceeds $472000, first, the whole sum of $472000 is transferred to the spouse with interests, if applicable.
The remaining residue of the estate will be divided between the spouse and the intestate heir. The spouse or the de facto partner will receive one-third of the remaining residue, and the remaining two-thirds will be equally divided between the other ‘issues’.
Note: It is important to note that by the term “issue,” it can be children of the spouse or children from another relationship that have to be biologically related to the intestate or legally adopted by the intestate.
According to an Intestacy lawyer Perth, if no legal spouse or de facto partner is present, the child of the deceased individual will inherit the entire estate. If there are two or more issues, the property will be divided among them equally.
If an individual dies leaving a husband or a wife but has no issues that are related by blood or were adopted, and also has no remaining parent alive, then the spouse will be entitled to absolutely all household chattels and the property. In the case of de facto partners, they are also eligible if they meet specific statutory criteria.
When the recognised partner of the intestate is alive, the parents can only have a share in their property if the total value of the net estate exceeds $705000. In such cases, the net amount of $705000 is first given to the spouse, with any interest if applicable. The residue value of the remaining estate is to be divided between the parents and the spouse equally.
When the deceased individual has only parents and siblings, first, the net estate value is measured. If the value is under $56000, the parents will receive the entire estate. However, if the estate value exceeds $56000, the parents will first receive the whole amount of the estate that is worth $56000.
Then the residue amount will be equally divided between the parents and the intestate’s siblings. The other half’s share will be distributed equally among the number of siblings, and if any sibling has died, that share of the property will go to the sibling’s children recognised by the law. It is essential to know that half-blood siblings are also considered for estate shares.
If there is no spouse, children or any siblings, the parents of the deceased will be entitled to the whole estate property. The shares will be divided equally between both parents if they are alive.
If the intestate has no parents, spouse, or children, then the sibling will be entitled to the whole estate. The estate will be divided equally if there are two or more siblings.
To avoid intestacy, you should draft a valid will with the help of the best estate planning lawyers. The procedure of intestacy follows the distribution of property according to the ways mentioned above. In case of partial intestacy, the net value of the estate in question is measured and distributed accordingly.
If none of these scenarios apply, the whole property of the deceased individual is passed to the State of Western Australia, known as Bona Vacantia. For more information and assistance, we will be right there for your help!