Fighting over the family fortune – Baby Boomer estate disputes ready to boom
You may have read this article published in The Age over the weekend - https://www.theage.com.au/national/it-is-going-to-get-really-bitter-why-family-will-battles-are-set-to-explode-20250116-p5l4uk.html
The article indicated that there is a $3.5 trillion intergenerational wealth transfer expected over the next decade, in the form of inheritances flowing from the first group of the Baby Boomer generation (born from 1946 to 1964) who are nearing the age of average life expectancy.
This enormous transfer of intergenerational wealth provides an unprecedented opportunity for disputes over wills.
Disputes often arise due to a lack of thorough (or no) estate planning, complex family circumstances including blended families, family members with different vulnerabilities and the ever-increasing value of assets.
Further, a lack of understanding about how superannuation death benefits, shares in private companies and interests in family trusts are dealt with on death sometimes means that inadequate legal documentation is in place, even where a valid will exists. This can lead to unintended outcomes in relation to the distribution of certain assets which don’t form part of the estate.
Will disputes deplete the estate, with legal costs often exceeding tens of thousands of dollars. These disputes can sometimes take years to resolve, during which the estate cannot be distributed, leaving the family in a state of uncertainty and distress. The emotional and psychological toll of the dispute should not be underestimated - the family’s dirty laundry is aired publicly in voluminous affidavits and the damage done to relationships is usually irreparable.
Over half of Australian adults do not have a will, and whilst it can be tempting to use a cheap online DIY will platform (today’s equivalent of buying a will kit from the Post Office), this one size fits all approach is often not appropriate. These basic products generally fail to give consideration to individual circumstances and are an inadequate investment in your family’s future. Whilst we offer an online wills platform, it is not appropriate for many people, it is not DIY and your will is checked by and discussed with one of our experienced wills lawyers.
Given the increasing complexity of family structures and the rising value of estates, it is more important than ever to obtain legal advice about your estate planning. This ensures that:
the right legal documents are in place, specific to your circumstances;
you have assessed your obligations to provide for any persons who may look to you for their maintenance and support;
proper consideration has been given to the risk of claims against your estate; and
strategies to reduce the risk of claims, or impact of claims, have been considered.
If you would like to discuss your circumstances, contact the Wills & Estates team.
Deborah Anderson
Principal Lawyer
T 03 5225 5235 | M 0439 562 201
E danderson@ha.legal
Daniela Pavlovic
Principal
T 03 5225 5227 | M 0417 014 455
E dpavlovic@ha.legal
