When planning your wedding, the thought of changing your Will is unlikely to be at the forefront of your mind. However, according to the best estate planning lawyers in Australia, the impact of saying “I do” extends way beyond parenting and disputes. Both marriages and divorces can imperatively affect Wills and Superannuation Death Benefit Nominations. Regardless of the nature of your union, you will need to update the documents of estate planning to ensure it aligns with your current circumstances.
So, continue reading and learn how exactly marriages can affect your Will and what you can do about it!
How Marriage Can Affect Estate Planning?- Learn From Lawyers
Nearly half of Australians don’t have a valid Will, and the ones that do, put it in the rarely-opened cabinet and never think of it again. However, reviewing and updating your estate planning is essential if you wish to distribute your estate in a certain way.
When does marriage affect your Will?
Marriage, even if it breaks after a few days, affects your Will immediately. If you have a pre-existing Will that doesn’t consider your wedding, it will be invalid according to Australian law. According to the Intestacy rules, authorities will distribute your property if you pass away without a valid Will. Therefore, updating your Will is crucial at all the significant milestones of life, like marriage and having kids.
How does marriage affect your Will?
As mentioned above, marriage can make your Will invalid. As per the Succession Act 2006, the Will maker or testator shall update their Will as soon as they get hitched. The Act also outlines that in the event of an invalid Will, your property or estate will go to eligible relatives, spouses and children being at the top of the list. However, if you have a valid Will, your spouse can make a provision claim in court, according to the estate planning lawyers. The foundation of the claim will depend on whether your Will adequately provides for your spouse.
Even spouses that you have divorced can make family provision claims. Upon research, you will find many cases where ex-spouses have made claims on an estate after years of divorce. Changing the legal ramifications of marriage is not easy, even with divorce. Therefore, making sure you leave behind a valid Will is critical.
How can separation or divorce affect the Will?
Typically, separation doesn’t affect estate planning. And in your absence, an ex-spouse will inherit their part of the property. If you name them the executor, they will have the right to act as one, regardless of circumstances. Yet, different states in Australia have distinct rules regarding the effect of divorce on estate planning.
For instance, In Victoria, divorce can cause former spouses to lose their position as executor, guardian or trustee. It can even revoke the gifts mentioned in the Will. Therefore, it’s imperative to speak with a local and experienced lawyer to update your Will before it’s too late.
How does marriage or divorce affect Superannuation Death Benefit Nominations?
Superannuation Death Benefit is not an asset. It's not a part of your Will, and you can't divide it like your estate. It requires you to nominate beneficiaries for the benefits just like you do for your Will. You can choose binding death benefit nomination, non-binding death nomination or no nomination.
With the binding nomination, you will have the best assurance and security about who will receive the payment. However, if you get married or separate from your spouse after creating the nomination, you shall update it instantly. Estate planning lawyers recommend updating the nomination every three years or after marital status changes. Otherwise, it can become invalid.
The non-binding nomination, on the other hand, puts more responsibility on the trustee of your superannuation fund. They will be the ones to decide who receives the benefit payment. Similar to the other option, non-binding SDBN can also become invalid if you don’t update it after changes in your marital circumstances. However, this option does not require updates every three months.
What can you do to ensure your Will stays valid?
You can draft your Will in a way that accounts for potential marriages and protects your estate planning. Keep in mind that your spouse or ex-spouse can still make family provision claims if they believe the Will does not provide them with enough. The best way to tackle any Will regarding issues is to consult with a professional lawyer. Make sure your lawyer has sufficient experience to tackle the complications and knowledge of your state rules and regulations regarding Wills and marriages.
Concluding Thoughts
Marriage can have dramatic effects on your life as well as on your Will. Hence, it’s critical to hire the best estate planning lawyers and ensure your Will is up-to-date as soon as you say “I do”. You should also give your Will a review if you have a child or establish a company. These updates will eventually ensure your property gets distributed the way you desire.
