Separation and Estate Planning
After a relationship breakdown, estate planning may not be your top priority, but here are some reasons why it should be.
A divorce will automatically revoke your existing Will, but a separation will not.
After a divorce, your last Will would operate as though your former partner died before you and will default to the named alternate or substitute executor specified in your Will. For a Will, this means the alternate clause will apply to the distribution of your estate so that your former spouse does not benefit from your assets.
Until a divorce is finalised, the automatic revocation of your Will would not take place. This means that while you are separated, your former partner may still stand to inherit your estate or act as your attorney and medical treatment decision maker if you lose capacity. Your intentions about your estate are likely to have changed following a separation. That is why it is important to update your estate planning documents after a relationship breakdown.
If you have separated from your partner and die without a Will in place, the laws of intestacy will determine who will benefit from your assets and in what proportion. In the event of a separation, your former partner may benefit from your estate as the laws of intestacy direct that your legal spouse would be entitled to your estate.
After separating, you should also review any nominations made in your superannuation or life insurance policies. Superannuation does not automatically form part of your estate and it is important that you update your nomination after a relationship breakdown, otherwise a payout may be made to your former partner.
Merton Lawyers understands the difficulties of a relationship breakdown and are here to support you and provide you with tailored advice regarding your estate planning needs.
Author, Serenay Kalkan.
