The Queensland Supreme Court recently provided a reminder of the importance of having your Will drawn by lawyers.
The deceased, who was very ‘careful’ about spending money, didn’t see a lawyer but her long-standing accountant to prepare her Will.
The deceased also held a belief that legal disputes would be expensive and take time to resolve.
Enter the irony …
The deceased died in 2023.
Three years, 10 parties and seven (yes, seven) sets of lawyers later – all arguing over the true interpretation of the Will– the court made rulings in March this year.
A fundamental principle in estate planning is that a Will can only dispose of assets that the Will-maker owns. The deceased, by her Will, tried to gift specific properties to various beneficiaries.
The problem was those properties were not owned by the deceased – but held by a trustee of a discretionary family trust. The issue for the court was whether those gifts could still take effect. The court confirmed that they could not.
Even where a Will-maker has involvement in a trust structure, that does not equate to personal ownership.
The gifts failed as the deceased was attempting to dispose of assets outside her estate.
Trent Wakerley, director, Wakerley Legal, Level 3, Ocean Central, 2 Ocean Street, Maroochydore, 5443 9600, wakerleylegal.com.au
This column is part of our Business 2 Business (B2B) series featuring industry leaders sharing their expertise. For more great articles, SUBSCRIBE to our FREE news feed, direct to your inbox daily. All you need to do is enter your email below.
