Planning options for blended families

Published in the Coffs Coast News Of The Area on 21 February 2025.

John owns his Smith Street home outright. He has two children to a previous relationship and has since been in a long-term de facto relationship with Joan.

John talks to his solicitor about his estate planning.

When John passes-away, he wants to make sure that Joan will be able to reside in the Smith Street property, but he also wants to make sure that his children will ultimately benefit from his estate.

John is advised that he is able to make a will which includes special provisions, granting Joan “equitable rights” in the Smith Street property, allowing her to use it during her lifetime. The will includes conditions to the effect that Joan must pay the home insurance premiums, the rates and other outgoings and she must keep the home in a condition of reasonable repair.

John appoints his two children as his executors. When he passes away, they will become the registered proprietors of the Smith Street property, ensuring that Joan cannot sell the property. His executors will nonetheless be bound by the terms of John’s will, regarding Joan’s occupation of the property.

John is also concerned that Joan may wish to downsize to another property or that she may wish to occupy a unit in a retirement village. She also may need to acquire a placement in a nursing home to facilitate her aged care needs.

The solicitor advises John that additional clauses can be included in his will which allow his children, as his executors, to sell the Smith Street property and use the proceeds to provide “comfortable and appropriate” accommodation for Joan in a variety of ways and only when she “permanently vacates” the accommodation, do his children receive their share of his estate.

John believes that his children will have a “workable relationship” with Joan, to facilitate her accommodation needs, whilst preserving his estate for their own interests. John is aware that some forms of accommodation, which involve the payment of a bond, may lead to the forfeiture of a percentage of capital.

This fictional column is not legal advice.