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.

de facto couple discussing estate planning with a lawyer

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:

de facto couple protecting their assets with an estate plan

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.

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Inheriting property from parents in Australia: what you need to know