When someone passes away, many people assume their Will is final. However, under Victorian law, certain people may be entitled to challenge a Will by making a family provision claim if they believe they have not been adequately provided for.
Family provision claims can have significant financial and tax implications. This is why working with a business accountant Melbourne like Nobel Thomas, alongside an experienced solicitor, is often essential.
What is a Family Provision Claim?
A family provision claim is an application made to the Supreme Court of Victoria asking for a greater share of a deceased person’s estate.
The Court has the power to alter the distribution of the estate if it determines that the deceased did not make adequate provision for the applicant’s proper maintenance and support.
What is a Family Provision Claim?
Eligible people may include:
- A spouse or domestic partner
- A former spouse or former domestic partner
- Children (including adopted and, in some circumstances, stepchildren)
- Grandchildren
- Members of the deceased’s household
- Anyone who was financially dependent on the deceased
Simply being related does not automatically guarantee success. The Court considers each case on its own facts.
What Does the Court Consider?
When deciding whether to grant a family provision claim, the Court may consider:
- The applicant’s financial circumstances (i.e. how much money or assets the applicant has)
- The size and nature of the estate
- The relationship between the applicant and the deceased
- Any disabilities or health concerns of the applicant
- Contributions made to the deceased or the estate by the applicant
- The competing needs of other beneficiaries
Every case is different, which is why obtaining professional advice from a business accountant Melbourne is important.
Why Accountants Matter
Although solicitors manage the legal process, accountants often play a vital role by:
- Valuing businesses and investments
- Preparing financial information for the estate
- Calculating tax implications of asset transfers
- Advising on capital gains tax and superannuation issues
- Assisting executors with estate administration
If the estate includes a family business, trust or investment portfolio, specialist accounting advice can help minimise unnecessary tax liabilities.
A knowledgeable Small Business Accountant like Nobel Thomas can also assist where business assets form part of the estate, ensuring businesses can be accurately valued and helping owners plan succession well before a dispute arises.
Planning Ahead
The best way to reduce the risk of a family provision claim is through careful estate planning. Regularly reviewing your Will, documenting your intentions and ensuring your estate beneficiaries reflects your family’s circumstances can significantly reduce future disputes.
Professional advice from both your solicitor and small business accountant can help protect your family’s wealth and provide greater certainty for your beneficiaries.
If you would like guidance on the financial or tax aspects of estate planning, our team at Nobel Thomas can work with you to help structure your affairs.
