Administration and Probate and Other Acts Amendment (Succession and Related Matters) Bill 2016

Mr  J. BULL (Sunbury) — I am pleased to have the opportunity to speak on the Administration and Probate and Other Acts Amendment (Succession and Related Matters) Bill 2016. There is no doubt that losing a loved one is never easy. Saying goodbye to that special person — a husband, wife, brother, sister, cousin, friend or neighbour — is without a doubt one of the hardest things that people have to do. Often I think that we only truly reflect on what this person meant to us when we lose them. Perhaps it is even fair to say that as the world gets busier and faster, as we are all distracted by a whole range of issues, we forget to genuinely tell people how much they mean to us and how much we value them.

When lives are lost within communities, communities usually come together to mourn, to support one another, to grieve and to say those important and final goodbyes. Like many in the house I have also lost some who were close to me — some who have lived through many winters and some who have not lived through enough winters. But there is no doubt that it is never easy to say goodbye.

I have a good friend who has just lost someone very close to them and in this instance there was no legal will. Unfortunately it is common for many Victorians to die without a will. In a time of sadness, in a time of grief this makes things all the more difficult and all the more complicated. It might be fair to say that young people in particular do not believe that a will is important, and certainly they do not see the need to sit down and write a will. Likewise they do not think that way about many other things in their life, and you can understand why that might be the case.

This is an important bill because it introduces a range of reforms to ensure that families are protected when a person dies without a will. The bill delivers on key remaining recommendations from the Victorian Law Reform Commission’s Succession Laws: Report of 2013 to give greater protection to beneficiaries, to better reflect the composition of contemporary families and also to better give effect to the intentions of will-makers. The bill also protects Victorian families from being charged excessive costs and fees by executors after a loved one has passed away. This is an incredibly important element of the bill, and it is one that I want to talk to quite a bit later on.

Death can be expensive, particularly sudden death. Often individuals are not prepared for the loss of a loved one. Families then have to pick up the pieces of not only losing that special person — the person who means so much — but also dealing with the legal element of that person’s passing. Whether it is funeral costs or the costs of legal fees around deaths, wills and the like, it all places a great strain and burden on the family and friends who are grieving that loved one.

The Australian Securities and Investments Commission’s MoneySmart notes that:

Most of us only find out about funeral costs when we need to arrange the funeral of a family member or friend.

We know that funerals can cost from $4000 for a basic cremation to around $14 000 for a more elaborate casket, burial and flowers. There are a whole range of items that families must consider when arranging a funeral: funeral director fees, transport, coffin, death certificate, permits, burial or cremation and cemetery plot. For those who have funeral insurance, have prepaid for their funeral or have enough superannuation saved to pay for their funeral, these costs can be covered — and obviously this is good preparation — but for those who do not have these things in order this can place an immense burden on the family.

If you think of a family that is facing a whole range of difficulties — contacting loved ones of the deceased, dealing with grief and perhaps telling children that they have lost a loved one — then being slapped with extensive legal costs in relation to matters of the will and matters of probate, these are very serious and difficult decisions to consider and make. There is no doubt that any piece of legislation that this government can bring forward to assist families in a time of great need and great distress is certainly something that I support.

Key changes that are made possible by this bill where someone has not made a will include the better protection of the rights of partners, as the entire estate will pass to the intestate deceased’s surviving partner where there are no children of the deceased or where all the deceased’s children are also the children of the deceased’s surviving partner. Further, where the deceased has a partner and children who are not the children of that partner, the surviving partner’s entitlement will increase from $100 000, as it is currently, to $451 909. Where the estate value is greater than $451 909, the surviving partner will inherit $451 909. I think these are very important changes because they reduce the financial pressure and the financial burden on families and individuals dealing with this situation through really tough times.

Further the bill recognises the realities of modern families. Where the intestate deceased is survived by multiple current partners — for example, a current spouse from whom they have separated but not divorced and a new domestic partner — the bill provides that the estate is divided between the partners by a distribution agreement, by a distribution order from the Supreme Court or in equal shares. To ensure consistency with all other Australian states, an appropriate new limitation will be set on the next of kin so that relatives more remote than first cousins will not inherit if a person dies without a will, although they may still apply to the Minister for Finance or make a family provision claim in some circumstances. If there are no next of kin, the estate then goes to the state. These are really instrumental measures.

Further to this, key amendments to protect the estate and beneficiaries from excessive executor costs, which I mentioned earlier, include giving the Supreme Court a new jurisdiction to review, reduce or order repayment to the estate of any costs, commissions and disbursements charged to the estate by executors either on the application of a beneficiary or on the court’s own motion. And of course before an executor’s commission can be charged they will require the written informed consent of the will-maker or the informed consent of the beneficiaries under the will if court approval has not been obtained. Paid executors will be required to provide a cost estimate to beneficiaries, another very important step.

The bill before the house is a good bill, an important bill that recognises, as I have mentioned, the great stress and strain placed on families when they lose a loved one. Certainly in my view the very best governments are those that recognise the distress and the difficult issues that families deal with day in, day out. A government that will always put people first is a government that I am proud of. This government understands that in very difficult times what families need is support and care. They need their government and those that make the law, that create legislation, and the bureaucracies that assist in this process to be on their side and to understand that in a time of great stress and difficulty wills are incredibly difficult to manage and deal with. These are not just the funeral costs but the costs of losing that person who brought in that second wage or that primary wage — and also losing that person who you love so very much.

They are incredibly difficult times, and certainly from conversations with family and friends and with those in the Sunbury community — the Gladstone Park community, the Tullamarine community, the Diggers Rest community — and certainly through other contributions this evening, there is no doubt that this bill is an important one. It makes critical changes around assisting in these very difficult matters of probate law and ensures that there are a whole range of measures that are put in place so that these difficult moments can be eased. This bill, I believe, is certainly a very good example of this government’s commitment to a fairer Victoria, where at a time of need you are supported by your government. I commend the bill to the house.