Why a Will is More Important Than You Think

Creating a will is often considered a taboo topic, especially among those with more conservative views. However, updating or creating a will whenever there are changes in personal assets is a wise decision. This is particularly important when it comes to the distribution of property. As discussed in previous articles, property can be held as “joint tenancy” or “tenancy in common,” but a will ensures that your assets are distributed according to your true wishes. Therefore, it is highly recommended that individuals who own property in Australia consult a lawyer and draft a will.

Why is a Will So Important?

Let’s take Victoria as an example to understand how personal assets are distributed if someone passes away without a will.

Statutory Inheritance Order in Victoria

• One spouse, no children: The spouse inherits all assets.
• One spouse, with children from that spouse: The spouse inherits all assets.
• One spouse, with children from another relationship: The spouse inherits personal chattels, the first $451,909 of the estate, and 50% of the remaining assets. The children from another relationship inherit the remaining portion.
• No spouse, with children: Assets are divided equally among the children.
• No spouse, no children: Assets are divided equally among the parents. If the parents are deceased, the siblings inherit the estate.
• More complex situations: There are specific distribution rules for other scenarios.

In Victoria, the statutory inheritance order primarily benefits the surviving spouse, who in most cases inherits the entire estate. This spouse-centric approach to inheritance may be unfamiliar to many in the Chinese community.

Statutory Inheritance Order in China

In China, the statutory inheritance order is as follows:

• First in line: Spouse, children, and parents.
• Second in line: Siblings, grandparents.

When there are first-line heirs, the estate is divided equally among them. Only if there are no first-line heirs do the second-line heirs inherit the estate.

Many newcomers to Australia might mistakenly assume that Australian and Chinese laws regarding marital property are similar, leading them to neglect taking steps to ensure their assets are distributed according to their wishes. However, as the above comparison shows, the distribution of assets without a will can differ significantly between the two countries.

Therefore, if you wish to leave your estate to your children or parents, it is essential to draft a valid will in Australia. Moreover, inheriting assets through the statutory order without a will can be a complicated and costly process, often involving expensive legal fees.

If you are not in Australia but wish to create a will to distribute your Australian assets, our firm offers professional will-drafting services to help you create a legally valid will that complies with Australian law, even from overseas.