In this section you will learn about what is an estate, why having a Will is important and how having a Power of Attorney (POA) can help in the management of your estate.

What is an estate?

When someone passes away, their assets are considered as their ‘estate’. The estate will include property, savings, investments and other material belongings of value (like cars, art or family heir looms).

What does a Will do?

If someone has a Will, in the event of passing away their estate can be transferred to their next of kin according to their choice.

A Will is executed, meaning carried out, by someone chosen by the owner of the Will, named as the 'executor'. The executor of the Will has the responsibility to follow the Will as it is written.

To make a Will, speak to a legal practitioner or search the web for an online legal provider. There are many providers which will support you to make a Will for free.

Community legal centers, for example, can often assist. More information on free legal services visit our Connect section.

What happens without a Will?

If someone passes away without a Will or, with an invalid Will, their estate would be distributed under a process known as 'administration'.

The process of administration follows a legal formula. This formula looks like:

• If the deceased person has a partner, then all of the estate goes to the partner.
• If the deceased has no partner but has children, then all of the estate goes to the children.
• If there are children from past relationships , some of the estate may go to the children of the previous partner. This only happens if there is more than $500,000 in the estate after all debts and funeral expenses have been paid.
• If the deceased has no partner or children, then all the estate goes to relatives in this order; parents, siblings, grandparents, aunts and uncles and cousins.
• If there are no living relatives, the assets go to the State of Victoria.

Source: Victoria Legal Aid, reproduced with permission.

What is a Power of Attorney?

If someone is faced with an event – such as an accident or illness – that takes away their capacity to make decisions about their property, a Power of Attorney (POA) can make decisions on their behalf to fulfill the person's needs.

To make a POA you must follow a legal process and therefore you will need to speak to a legal practitioner.

For more information on how to elect a POA in Victoria, visit the Office of the Public Advocate website.