Estate Planning in de facto relationships: What you need to know
De facto relationships are legally recognised in Australia, but Estate Planning for these partnerships can feel overwhelming. Without a clear plan, your partner or children may face disputes over assets or miss out on their inheritance.
A tailored Estate Plan ensures your wishes are followed, your loved ones are cared for, and conflicts are avoided.
In this blog, our lawyers explore unique challenges de facto couples face. We’ll uncover key strategies to protect your family and how to secure your future.
Understanding de facto relationships in Estate Planning
Before creating an estate plan, it’s essential to understand what legally defines a de facto relationship. In Australia, de facto couples are two people living together in a genuine domestic relationship without being married.
Key factors include:
The length of your relationship
Financial dependence or shared financial responsibilities
A shared home or joint assets
Recognition of your relationship by family and friends
This legal recognition is crucial because it impacts your partner’s rights to inherit your assets. Without proper documentation, like a Will, your partner may need to prove the relationship, leading to delays or disputes.
Why Estate Planning is critical for de facto couples
De facto couples face unique challenges that married couples often don’t, making Estate Planning essential.
Unlike married couples, inheritance rights are not automatically guaranteed for de facto partners. Without a proper plan, your partner may face legal hurdles or miss out on their share of your estate.
Key risks include:
Your partner needing to prove the relationship to third parties to claim assets
Assets being distributed to family members under intestacy laws if there is no Will
Disputes between your partner and children, especially in blended families
An Estate Plan ensures:
Your partner is legally protected and included in your Will
Children’s inheritance is safeguarded, avoiding potential conflicts
Clear instructions prevent disputes among surviving family members
Failing to plan can result in unintended outcomes, such as your partner or children missing out. A complete estate plan, including a Will, makes your intentions clear and legally binding. To learn more about the distinction, read our blog ‘What are the differences between a Will and Estate Planning?’
Ensuring your children’s inheritance is secure
For de facto couples, protecting children’s inheritance is a crucial part of Estate Planning. Without clear instructions, disputes can arise, and children’s entitlements may be overlooked.
Key strategies to safeguard their future:
Establish a trust to ensure their inheritance is managed securely and distributed according to your wishes
Use binding nominations for superannuation and life insurance to allocate funds directly to them
Clearly outline their entitlements in your Will to avoid confusion or disputes
Blended families or separated parents can complicate inheritance decisions. A carefully crafted Estate Plan can provide clarity and peace of mind for everyone involved.
Related:
Securing property rights for de facto partners
For de facto couples, property ownership can create significant challenges if one partner passes away. Unlike for married couples, there may be more ambiguity around entitlements to shared property. They may need to prove the relationship to claim their share.
Key steps to secure property rights include:
Including clear instructions in your Will regarding property division
Documenting ownership of shared assets, such as your family home, to avoid disputes
Establishing binding financial agreements to protect your children’s interests
If children are involved, it’s important to plan how property will be divided between your partner and children.
Preventing disputes through clear Estate Planning
Inheritance disputes are more common in de facto relationships, often due to misunderstandings or lack of clear documentation, and particularly where blended families are involved. Without a solid estate plan, loved ones may face unnecessary legal battles that strain relationships and finances.
To minimise disputes:
Create a detailed Will that clearly outlines how your assets should be divided
Communicate your wishes with family members and loved ones to manage expectations
Use legal tools like trusts and binding nominations to formalise your intentions
Seek professional guidance for peace of mind
Estate Planning for de facto couples can be complicated, especially when managing the needs of your partner and children. Seeking professional advice ensures your plan is comprehensive, legally sound, and tailored to your family’s circumstances.
Our experienced Estate Planners can help:
Protect your partner’s inheritance and legal rights
Secure your children’s future with clear and binding instructions
Guide you through creating a Will and other important legal documents
Take control of your future - contact Direct Lawyers today
Estate Planning for de facto couples protects your partner, your children, and your assets. Create a plan now to avoid legal disputes, secure your family’s future, and ensure your wishes are respected.
Don’t wait until it’s too late. Contact Direct Lawyers’ Estate Planning expert to start building a plan that suits your needs. Book a FREE initial consultation now or give us a call on (07) 3703 1888.