The Qld 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 to prepare her Will, but her long standing accountant.
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, ten 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 Willmaker 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 Willmaker 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.