Late last year the Succession Act 2023 was passed by Parliament and comes into effect on 1 January 2025.
What is the Succession Act? Whilst there are technical descriptions for what it deals with, in everyday terms, think all things related to wills, estates and inheritance. It brings together what was previously dealt with in three Acts.
In basic terms, when a person passes away, any assets he or she has comprise that person's 'estate'. What happens to these assets is typically set out in a person's will.
Whilst a will may say what should happen to these assets, this is able to be challenged and people can claim that they should either receive something (when the will does not give them anything) or receive more from the estate than they have been (where they are left something in the will).
The Succession Act attempts to make challenging a will more difficult, with the wishes of the deceased person now being the primary consideration. Whilst varying views have been expressed as to whether this will in fact make it more difficult to challenge a will, until there are some decisions from the Court there will be a degree of uncertainty on this issue.
There are also a couple of particularly important matters arising from the Succession Act that people should be aware of.
Firstly, whilst a previous spouse or domestic partner may be able to make a claim on a deceased's estate, this is now not permitted where they have previously entered into a property order or an agreement of a prescribed kind prior to the death of the deceased. This will be important where people are in the process of becoming, or have become, divorced.
Secondly, the Act now specifically contemplates, subject to certain criteria, that step-children will be able to make a claim against their step-parent's estate. With an increasing number of people having blended families, this is something which is potentially very important and needs to be taken into account by people when having their will prepared.
These changes make it important for people to properly consider what is in their will and whether their affairs are properly structured, so as to ensure that when they pass away what they want to happen with their assets does in fact happen.
This article was published in the Stock Journal in September 2024.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.