What Happens If You Die Intestate in Australia? (2025 Guide)

Most Australians don’t like to think about wills and estate planning, but ignoring it can leave your family and finances in a bind. In 2025, dying intestate (without a valid will) still has far-reaching consequences—especially with recent updates to inheritance laws and the ongoing complexity of modern families. Understanding what happens to your assets and loved ones if you pass away intestate is crucial for making informed financial decisions.

What Does Intestate Mean?

Intestate means a person has died without a legally valid will. In Australia, each state and territory has its own intestacy laws, which set out a strict order for distributing the deceased’s assets. This process is handled by the Supreme Court in each jurisdiction and can take months, or even years, to resolve—particularly if there are disputes or complex family arrangements.

• No will = no control over who inherits your assets.
• State laws decide who gets what, not your personal wishes.
• Potential for family conflict, legal costs, and delays.

For example, in NSW, the Succession Act 2006 has been amended as of January 2025 to clarify definitions of “spouse” and “domestic partner”—significant for blended and de facto families. Queensland and Victoria have similar, but not identical, frameworks.

How Are Assets Distributed When Someone Dies Intestate?

The process of dividing an intestate estate follows a set hierarchy. While details vary by state, the general pattern is:

1. Spouse or de facto partner (including same-sex partners)
2. Children (biological and adopted; step-children in some states)
3. Parents if no spouse or children
4. Siblings
5. More distant relatives (nieces, nephews, grandparents, uncles, aunts)
6. The State (if no eligible relatives can be found)

Recent changes in 2025 have further recognised de facto and blended family rights, but these can still be contested—especially if relationships weren’t formally registered or if dependents are overlooked. In practice, this often leads to unintended outcomes, such as estranged spouses inheriting everything, or minor children missing out on support.

Real-World Scenarios: Why Intestacy is Risky in 2025

Consider these examples based on current laws and real cases:

• Blended Families: With more Australians in second marriages or de facto relationships, intestacy can leave biological children from previous relationships at risk of receiving less (or nothing), depending on the state’s legislation and how assets are held.
• Property Ownership: Jointly owned property may automatically pass to the surviving co-owner, bypassing intestacy rules. But if property is held as tenants in common, the deceased’s share will be subject to intestacy laws.
• Superannuation: Your super fund’s trustee generally decides who receives your super unless you have a binding death nomination. This can override intestacy law and lead to disputes, particularly in 2025 with tighter superannuation binding nomination rules.
• Digital Assets: Social media accounts, cryptocurrency, and digital records are often overlooked in intestate estates, leaving families in legal limbo.

In 2025, the Federal Government is reviewing national intestacy harmonisation, but for now, differences between states persist—making it even more important to understand your local rules.

How to Avoid the Pitfalls of Intestacy

Intestacy can cause emotional and financial stress for loved ones. Here are proactive steps Australians should consider:

• Make a legally valid will. Even a simple will can save your family from uncertainty and conflict.
• Update your will after major life events—marriage, divorce, new children, or property purchases.
• Register your relationships if you’re in a de facto partnership, especially in states where this affects inheritance.
• Set up binding nominations on your superannuation and life insurance policies.
• Discuss your wishes with your family and potential beneficiaries to minimise disputes.

Leaving your estate to chance rarely works in your family’s favour. With the average Australian estate now valued at over $700,000 (according to 2025 CoreLogic data), the stakes have never been higher.