Will - Designated Beneficiaries in Australia?

[Burbles]

Does Australia have the same provision as the US, whereby if you designate beneficiaries for financial holdings (bank accounts, retirement accounts, insurance policies, etc) with the institutions concerned, these designations override any beneficiaries named (or other instructions) in a will?

I understand that the point of this provision is that upon the death of the holder, financial assets can be directly disbursed to the designated beneficiaries, without having to go through probate.

Is probate compulsory in dealing with the estate of a deceased person in Australia?

 

[Rob Legat - SBPL]

In answer to your first question: none that I'm aware of. The only thing I know of that can potentially counter a will's bequests in that frame of things are designated beneficiaries under an insurance policy, and superannuation.

In answer to your second question: no. Most banks have a level under which they won't require probate. For example, the National Australia Bank doesn't require probate if the estate is less than $50,000.

 

[Burbles]

In answer to your first question: none that I'm aware of. The only thing I know of that can potentially counter a will's bequests in that frame of things are designated beneficiaries under an insurance policy, and superannuation.

In answer to your second question: no. Most banks have a level under which they won't require probate. For example, the National Australia Bank doesn't require probate if the estate is less than $50,000.

 

[Burbles]

Thanks for your reply.

I gather then that a provision for designating beneficiaries (which would override a will) exists for insurance policies and superannuation funds but not for other kinds of holdings, such as bank accounts, stocks, etc.

Re: the second question, does this mean that different institutions set their own levels for requiring probate, rather than there being a mandated amount that all institutions have to abide by?

 

[Rob Legat - SBPL]

Yes.

 

[Tim W]

In answer to your second question: no. Most banks have a level under which they won't require probate. For example, the National Australia Bank doesn't require probate if the estate is less than $50,000.

It may be helpful to remember that this is a commercial choice by the bank, and, while lawful in itself,
does not affect the operation of, say, the intestacy rules, nor the rules of equity,
nor the operation of the applicable wills and succession legislation
(including, where applicable, the prospects of family provision claims),
and, in particular, does not mean that, say, a spouse can "help themself"
to the contents of a deceased's bank account.

 

[Burbles]

Thank you.