After a loved one passes away, there can be complications with the arrangement of the Will. Things like the distribution, the beneficiaries, and the overall estate can be a means for filing a claim or a deed of family arrangement.
This guide covers what a deed of family arrangement is and when they're necessary during the estate distribution.
What is a deed of family arrangement?
A deed of family arrangement is a legal document that states how to distribute the estate, who will benefit from this distribution and specific requirements about who inherits assets. It can also cover what will happen to the assets if there's no Will and the person dies intestate.
Who should have a deed of family arrangement?
People concerned about distributing their assets after they pass away should consider this deed. It's especially important for people with specific wishes or requests for how they want to distribute their estate. However, including these wishes in your Will, doesn't automatically mean they will happen without this deed.
What is the purpose of a deed of family arrangement?
The deed disperses your estate per your wishes, whether that's with certain beneficiaries or none at all. It is also put in place if there are special requests for distribution such as inheritance conditions or personal items like jewellery and cars. The deed also protects your estate from specific claims where there is no deed of family arrangement.
When do you need a deed of family arrangement?
A deed of family arrangement is necessary when certain requirements and conditions need to be fulfilled for someone to inherit or not inherit.
For example, suppose a person has a deed stating that they want their estate to go only to their direct descendants and no one else. In that case, the deed must be submitted for this stipulation to be considered legally binding.
If a deed is not created for any special requests, they are automatically included in your Will as they have no legal effect.
So, for example, if you want to ensure that the beneficiary of your estate has to be at least 25 years old before getting their inheritance, but there was no deed, it automatically defaults to your Will.
If you want to ensure that the distribution of your estate goes exactly as you wish, a deed of family arrangement needs to be created and validated.
A deed of family arrangement is a legal document that outlines how your estate will be distributed after you die. It helps avoid potential conflicts between heirs and can help to protect the validity of any wills or trusts you have created in advance.
If this sounds like something you should take care of then get started today by completing ouronline Will writing service with Willed.com.au. You'll never know if it's too late until it happens - so make sure your loved ones are taken care of now while you still have time.