NSW Dying Before Deceased Estate is Finalised - What will Happen?

[Knightmare]

A friend has a sibling who may die before their parents' estate is settled.

What will happen to the sibling's portion of the deceased estate - will it revert to the estate for re-distribution amongst surviving members or will their portion be distributed on the basis of their will?

 

[Rob Legat - SBPL]

It will depend on the wording of the will. Generally speaking, unless there is some specific condition attached to the bequest in the will, once the person survives the testator (often by a buffer of, say, 30 days) then the distribution will form part of the person's estate.

 

[Knightmare]

Are you saying that if a beneficiary dies before the testator's estate is distributed, that the proceeds of the estate will still go to the beneficiary (even though they are dead)?

 

[Rob Legat - SBPL]

Yes, sort of. It can't go to them, as they're dead - it forms part of their estate and is divided according to their arrangements. That only applies if they:

- legally survive the testator but die before receiving the bequest; and
- the testator's will doesn't provide otherwise.

There's also the concern of a challenge to the will, but that's an overarching concern that occurs across the board.