Hypotheticals by Manny Wood. Published in the Coffs Coast Advocate on 23 July 2016.
John and Mary are 80 years of age. They have accumulated significant assets during their lifetimes and decide to review their Wills.
They have two children who are both married and each have three young children of their own.
Unfortunately, John and Mary’s third child died some years ago and is survived by his widow, Jane and 10-year-old child.
The financial circumstances of John and Mary’s two surviving children are varied. One is a successful business person and the other is a stay at home mother who has struggled financially. Jane owns a modest home and has always been employed and self-supporting.
John and Mary’s relationship with Jane is not as close as it once was. They want most of their estate to be left to their two surviving children.
John and Mary decide that when they pass, their Wills will provide that their estate is divided into seven equal parts. Each of the surviving children are to receive three parts with the remaining 1/7 bequeathed to Jane. The proposed distribution is based on the number of their children’s offspring.
”John and Mary are concerned that Jane may be able to challenge their wills,” seeking further provision from their estates.
John and Mary consult a solicitor specialising in these types of matters and is advised that there is only a limited class of “eligible persons” who can make a challenge on their estate.
These persons include children and persons who were at any particular time, wholly or partly dependent upon them and who is either a grandchild or was a member of their household at some time.
The solicitor explains to John and Mary that Jane is not able to challenge their estate by virtue of being a daughter-in-law alone and given that neither Jane nor her child have ever been dependent upon them, they will not be eligible to make a claim.
John and Mary are relieved that their testamentary wishes will be respected.
