A common situation is one where a parent with children re-marries another parent with their own children creating a blended family. It is not then unusual for each parent to enter into an agreement to make mutual wills which are in reciprocal terms leaving their property to each other with the survivor to leave their estate to all the children, usually equally.
In a recent case, Stanford v Stanford [2021] NSWSC 1469, one of the children of a “blended family” decided to make a family provision application to alter the terms of his late father’s will under which his estate was left to his wife and there was in place an agreement for mutual wills so that the four children would eventually inherit equally the wife’s estate upon her passing.
All the son wanted was money now to purchase a new car, pay a deposit on a house and have a buffer left over! He couldn’t wait for his step-mother to keel over despite the mutual will agreement.
The Court dismissed the application as he was an able-bodied adult in employment and able to look after himself, the value of the estate was a tiny $231,009.00 and the son’s failure to demonstrate a pressing financial need to merit an immediate provision. Also, not only did the wife have rights and obligations under her agreement with her late husband, she was entitled to security of accommodation and financial security for the rest of her life and, in any case, the son would receive his one quarter share of his step-mother’s estate on her death.
So, the message here is that unless there is an exceptional case, the method of blended family parents entering into an agreement to make mutual wills is an effective way to ensure financial security for both and an eventual fair distribution to the children.
February 2022