It is not uncommon for Testators / Willmakers to ask to leave a nominal amount, such as $1 to certain beneficiaries, as a statement of their wishes for that particular beneficiary.
The question, therefore, arises: If a beneficiary is left $1 in a Will, does that prevent them from disputing the Will?
Understanding the $1 Bequest
Leaving a beneficiary just $1 in a will typically signifies that the testator acknowledges the existence of the beneficiary in their life however that they do not wish to leave the beneficiary any substantial amount from the estate.
Can $1 Prevent a Dispute?
The simple answer is no; leaving a beneficiary $1 in a Will does not prevent them from disputing the Will.
Several factors can influence a beneficiary’s decision to challenge a Will. The amount that they are left with is just one consideration.
Grounds for Contesting a Will
Beneficiaries can contest a Will based on various grounds, including:
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- Lack of Testamentary Capacity: If the testator was not of sound mind when making the Will.
- Undue Influence: If the testator was coerced into making the Will or certain provisions.
- Fraud: If the Will prepared and/or executed through fraudulent means.
- Improper Execution: If the will does not meet legal requirements for validity.
- Family Provision Claims: Under the Succession Act 2006 (NSW), there are categories for eligible persons (such as spouses, children, and dependents and others) (“eligible persons”).
Such eligible persons may make a claim for provision or further provision from the estate if the bequest does not adequately provide for their needs.
In New South Wales, a nominal bequest does not preclude a person from making a family provision claim. The Supreme Court will determine the adequacy of the bequest based on the beneficiary’s needs and various other factors.
Preventive Measures
To ensure that your estate plan is robust and minimises the risk of disputes, it is essential to seek professional advice and consider all aspects of your family dynamics and legal obligations.
Need help with your estate planning or concerned about potential disputes? Contact the Estate Planning team at Conditsis Lawyers. Our experienced professionals are here to guide you through the complexities of estate planning and help you create a will that reflects your wishes and addresses potential issues.
We will:
- assist you to proactively address potential issues and conflict.
- prepare a family provisions Affidavit which will not prevent a claim against your estate, however, it is persuasive on the Judge and the executor if a claim is made against your estate.
- assist you to provide the rationale behind the distribution of your assets including your relationship with the various beneficiaries (or excluded beneficiaries) throughout your life.
- Your executors can be equipped with this document if they need it, ie, no one needs to see this document unless a claim is made.
Call us today to schedule a consultation on 02 4324 5688.
