Intestacy

Intestacy is what happens to an estate when there is no valid Will to govern its distribution. Each Australian state and territory has its own intestacy rules that set out, in a strict statutory order, which relatives inherit and how much each receives. The outcome often surprises families — a surviving spouse may have to share with the deceased's children, step-children can be excluded, and a long-term unmarried partner may have to prove a de facto relationship to inherit at all.

Intestacy is resolved by appointing an administrator under letters of administration, who distributes the estate strictly per the formula. The rules differ materially between states — NSW gives a surviving spouse the whole estate where all children are also the spouse's, while other states require the spouse to share with the children. Example: Under intestacy, Priya's $600,000 estate was split between her husband and two children by a statutory formula she never would have chosen.