If a person dies without a Will (Intestate), the Statutory Legacy will now be reviewed by the Minister every two years
On 24 March 2022, the WA parliament passed the Administration Amendment Bill 2021 (WA).
When a person dies without leaving a Will, they are said to have died intestate. Their estate is distributed according to a formula in the Administration Act 1903 (WA) (the Act). The amount payable to the surviving relatives under the Act is called a statutory legacy.
Did you know that the statutory legacy was last updated in 1982(!). Outdated much? Sadly, yes!
Now, if a person dies without a will:
- leaving children and a spouse or de facto partner, the amount the spouse or de facto partner receives is increased from $50,000 to $472,000
- leaving no children but a spouse or de facto partner, the amount spouse or de facto partner receives has increased from $75,000 to the first $705,000; and
- leaving no children or spouse or de facto partner, the amount the parents receive has increased from $6,000 to $56,500.
Further, these amounts are to be reviewed by the Minister every two years. This will allow increases to follow as our economic climate changes.
Though we are pleased that finally WA intestacy laws are under the spotlight, we would still stress that there is no substitute for having a valid Will. To die intestate creates major issues for the family of the deceased, especially where there are minor children involved. It can be a huge burden in terms of time, cost and energy. It is far more cost and time effective to have a valid Will in place, which will allow you to control the outcome of your legacy without relying on the statutory kind.
Please contact us for further information.
