Adult children could soon be banned from contesting their parents’ wills if the estate is worth less than $250,000 under a proposed shake up of Queensland’s inheritance laws.
Ex-partners who are still legally married to someone who has died could also be excluded from automatically inheriting the deceased’s estate if no will has been left behind.
The potential reforms have been raised by the Queensland government in a new policy paper that floats a range of possible changes to the state’s decades-old Succession Act, including capping costs when challenging a will.
Under current laws, children, stepchildren, dependents, and spouses are entitled to contest a will — known as making a family provision application.
The government is now suggesting a rule change so children and stepchildren of the deceased are essentially banned from making an application if the estate is small and valued at less than $250,000.
Children with a disability, who are under 18 years of age, who are under 25 years and financially dependent on the deceased, or who are on a government pension would still be allowed to contest a will.
According to the policy paper, such a move would ensure only children in need can make a claim for smaller estates, while recognising how the costs of challenging a will can diminish an estate’s value.
The government has also revealed it is considering capping costs in family provision applications so that any awarded costs to be paid from the estate do not exceed a certain amount.
In its discussion paper, the government says the “escalating costs” of making applications is concerning, particularly for smaller estates.
The government has also proposed changes to the way that someone’s estate is divided if they leave no will behind.
Queensland Law Society president Chloé Kopilović said the proposed change to the definition of a spouse was “critical” and would bring the laws into the 21st century.
“There are plenty of people out there that have separated, have divvied up their property,” she said.
“They’ve just elected not to actually file for divorce to avoid the extra cost.
(ABC)
