Key Points: Understanding Inheritance in Australia

Inheritance can be a complex and emotional process, especially when dealing with the loss of a loved one. In Australia, the laws surrounding inheritance can vary depending on whether or not there is a Will in place.

Australians are fortunate in that they do not have to pay inheritance tax, but there are still financial obligations to consider. When someone passes away, their assets become part of their ‘deceased estate’, which can include anything from houses and bank accounts to sentimental items of value.

Having a Will in place can make the process of inheritance much smoother, as it outlines how the deceased wishes their estate to be distributed. In the Will, an executor is appointed to carry out these wishes and ensure that all obligations are met. If there is no designated executor, the courts may need to intervene and appoint an administrator.

Probate is a court order that validates the Will and allows the executor to administer the estate. If there is no Will, the estate is distributed according to a formula set out in legislation, with assets usually going to the surviving partner and children.

Inheriting overseas property can also come with its own set of tax implications, so it’s important to seek professional advice. If you believe you are entitled to an inheritance but are not included in the Will, you have the right to challenge the inheritance under the Succession Act.

Overall, inheritance can be a complex and challenging process, but there are resources available to help navigate the legalities and ensure that the deceased’s wishes are carried out. Organizations such as State Trustees provide guidance and support for those dealing with end-of-life matters and inheritance issues.