Clock

Time Limits for making claims against estates are brutal

RT element styles for the table above

A partner and children

Personal chattels go to the partner

A payment of $155,000 to the partner

The rest of the estate is split into three:

one third goes to the partner;

andtwo thirds goes to the children

The partner will receive personal chattels and $270,000.

  • Personal chattels go to the partner
  • A payment of $155,000 to the partner
  • The rest of the estate is split into three:

Family Members

How an estate is distributed under the Administration Act

Practical example using a $500,000 estate

A partner
but no children
or no parents

  • Personal chattels[2] go to the partner so does the rest of the estate

The partner will receive the personal chattels and the whole estate of $500,000

A partner and children

  • Personal chattels go to the partner
  • A payment of $155,000 to the partner
  • The rest of the estate is split into three:
    • one third goes to the partner:
    • two thirds go to the children

The partner will receive personal chattels and $270,000.

The children will receive $230,000. If there is more than one child this is shared equally between them.

A partner but no children and one or both parents

  • Personal chattels go to the partner
  • A payment of $155,000 to the partner
  • The remainder of the estate is split into three:
      • two thirds will go to the partner;
      • and one third to the parent(s) (shared  equally)

The partner will receive the personal chattels and $385,000.

The parent will receive $115,000. If there are two parents, this is shared equally, so $57,500 each.

Children and no partner

All of the estate goes to the children

Children receive everything – $500,000 shared equally

No partner, no children, but one or both parents

All of the estate goes to the parents

Parents receive everything $500,000 – if two surviving parents they will receive $250,000 each

No partner, no children, no parents, but one or more siblings (full or half)

All of the estate goes to the siblings to share equally.

The siblings will receive $500,000 shared equally

No partner, no children, no parents, but grandparents or uncles or aunts

The estate will be split into two

as to half (mother’s side):

  • this half goes to the grandparents on the mother’s side; or
  • if there are no grandparents, then for the uncles and aunts on the mother’s side; or
  • if no grandparent or uncle or aunt  on the mother’s side then this half goes to the other half below

as to the other half (father’s side):

  • this goes to the grandparents on the father’s side, or
  • if there are no grandparents, then to uncles and aunts on the father’s side; or
  • if no grandparent or uncle or aunt on the father’s side then this half goes to the first half

Example 1. If there are two grandparents on the mother’s side and one aunt on the father’s side then:

The grandparents share in $250,000 ($125,000 each) and the aunt gets $250,000

Example 2. if there are no grandparents or aunts or uncles on the mother’s side, but two grandparents on the father’s side then:

The grandparents share $500,000 ($250,000 each)

Where the person leaves behind none of the above people

All of the estate goes to the Crown

This is the only situation where the estate goes to the Crown.

Jones v Sharma – Claim by estranged children against their father’s will which left everything to a family friend

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Background

Charlie Smith died in 2006. His estate was worth approximately $1.625 million ($2.9 million now).

Charlie had four estranged adult children – Louise, Daniel, Brianna and Jill. Charlie had gone through a bitter separation with their mother when the children were all under 15 years old. He had had little to do with the children; had not given them any financial or emotional assistance and had written them off by placing them in the “camp of his ex-wife”.

Caroline Jones and her husband, Carl, were close family friends with Charlie. Charlie had effectively adopted Caroline, Carl and their family as ‘his family’.

The will

Charlie’s will gave $25,000 ($45,000 now) to each of his children and $2,000 to his caregiver. The rest of his estate was left to Caroline and Carl.

The claim

Louise, Daniel, Brianna and Jill made a claim under the Family Protection Act against Charlie’s estate claiming that Charlie had breached his moral duty by failing to make adequate provisions for them in his will.

Circumstances of the claimants

Louise told the court that her parent’s separation was very difficult. She received no emotional support from her dad and suffered emotional problems due to the estrangement. Louise was married with two children. She made $67,000 per year and her husband made $32,000 per annum. They had a house worth $550,000 subject to a $19,000 mortgage. They were also supporting their daughter through university.

Daniel was divorced with two children. He said that Charlie’s rejection of him caused him emotional problems and low self-esteem. Daniel earned between $25,000 to $35,000 per year and had debts of $10,000. He had a house worth $560,000 subject to a mortgage of $128,000. One of Daniel’s children was still living at home.

Brianna had had a difficult life, she was in an emotionally abusive relationship, had had several miscarriages and one baby die. She suffered from depression and felt neglected by Charlie. Brianna was a single mum, earning $23,400 a year. She had ongoing medical issues, owed a debt of $20,000 to her mum and had $2,700 on her credit card. Brianna owned a house worth around $330,000 with a mortgage of $66,900.

Jill told the court that she felt abandoned by her dad and had never felt like he had wanted anything to do with her. Jill was having ongoing psychotherapy treatment. She was single earning $66,561 a year, had cash savings of $16,500 and a car worth $1,000. Jill owed her Mum $5,000.

The decision

The Court said that Charlie, being the adult at the time of his separation (which is when the estrangement started), bore prime responsibility for the estrangement between him and his children. The court also said that a parent cannot blame lack of communication on young children, or infer that they should have taken the initiative to contact the parent. All of Charlie’s children suffered emotionally due to his lack of interest in them.Charlie had significantly breached the moral duty he owed to his children. Charlie did not owe that same duty to Caroline or Carl. The Court awarded $145,000 ($262,000 now) to each of the children being 75 per cent of the net value of the estate.

Jones v Sharma – Claim by estranged children against their father’s will which left everything to a family friend

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Background

Charlie Smith died in 2006. His estate was worth approximately $1.625 million ($2.9 million now).

Charlie had four estranged adult children – Louise, Daniel, Brianna and Jill. Charlie had gone through a bitter separation with their mother when the children were all under 15 years old. He had had little to do with the children; had not given them any financial or emotional assistance and had written them off by placing them in the “camp of his ex-wife”.

Caroline Jones and her husband, Carl, were close family friends with Charlie. Charlie had effectively adopted Caroline, Carl and their family as ‘his family’.

The will

Charlie’s will gave $25,000 ($45,000 now) to each of his children and $2,000 to his caregiver. The rest of his estate was left to Caroline and Carl.

The claim

Louise, Daniel, Brianna and Jill made a claim under the Family Protection Act against Charlie’s estate claiming that Charlie had breached his moral duty by failing to make adequate provisions for them in his will.

Circumstances of the claimants

Louise told the court that her parent’s separation was very difficult. She received no emotional support from her dad and suffered emotional problems due to the estrangement. Louise was married with two children. She made $67,000 per year and her husband made $32,000 per annum. They had a house worth $550,000 subject to a $19,000 mortgage. They were also supporting their daughter through university.

Daniel was divorced with two children. He said that Charlie’s rejection of him caused him emotional problems and low self-esteem. Daniel earned between $25,000 to $35,000 per year and had debts of $10,000. He had a house worth $560,000 subject to a mortgage of $128,000. One of Daniel’s children was still living at home.

Brianna had had a difficult life, she was in an emotionally abusive relationship, had had several miscarriages and one baby die. She suffered from depression and felt neglected by Charlie. Brianna was a single mum, earning $23,400 a year. She had ongoing medical issues, owed a debt of $20,000 to her mum and had $2,700 on her credit card. Brianna owned a house worth around $330,000 with a mortgage of $66,900.

Jill told the court that she felt abandoned by her dad and had never felt like he had wanted anything to do with her. Jill was having ongoing psychotherapy treatment. She was single earning $66,561 a year, had cash savings of $16,500 and a car worth $1,000. Jill owed her Mum $5,000.

The decision

The Court said that Charlie, being the adult at the time of his separation (which is when the estrangement started), bore prime responsibility for the estrangement between him and his children. The court also said that a parent cannot blame lack of communication on young children, or infer that they should have taken the initiative to contact the parent. All of Charlie’s children suffered emotionally due to his lack of interest in them.Charlie had significantly breached the moral duty he owed to his children. Charlie did not owe that same duty to Caroline or Carl. The Court awarded $145,000 ($262,000 now) to each of the children being 75 per cent of the net value of the estate.

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