Inheritance Disputes Surge in Australia as Wealth Transfer Fuels Family Feuds
An ageing population, intricate estate structures, and mounting cost-of-living pressures are driving a significant increase in contested wills across Australia. As individuals battle for what they perceive as their rightful inheritance, family relationships are being torn apart in emotionally charged legal conflicts.
The Growing Crisis in Succession Law
Succession law, one of the most emotionally fraught areas of legal practice, is witnessing a dramatic uptick in disputes. Data from the New South Wales Supreme Court reveals a staggering rise: court-annexed mediations in succession and probate cases jumped from 104 in 2021 to 735 in 2025, while filings increased from 1,168 to 1,467 over the same period. This surge coincides with the onset of the "great wealth transfer," where $5.4 trillion in assets from the silent generation and baby boomers is passing to descendants over the next two decades.
Prue Vines, a law professor at the University of New South Wales and an expert in succession, notes that while most wills are executed smoothly, the outliers involve horrendous family disputes. She first observed a rise in such conflicts thirty years ago, but today's eye-watering house prices and deepening inequality have escalated the stakes far beyond mere family heirlooms.
Personal Stories Highlight the Emotional Toll
Charlotte's experience underscores the personal devastation these disputes can cause. After her father's death, she discovered he had altered his will to leave his entire estate to one sibling, excluding her and two others. Despite contesting the will and undergoing failed mediation, they eventually settled out of court, receiving only a minority portion of the estate. The fallout was profound: Charlotte, divorced and without property in her late 50s, struggled not only with financial loss but also with re-evaluating her relationship with her late father.
"What value did we have, and what responsibility did he have towards us?" she reflects, highlighting the emotional turmoil that accompanies such battles. Her story is not unique, as many families grapple with similar conflicts driven by what she describes as greed masked as respect for parental wishes.
Factors Driving the Increase in Disputes
Several key factors are contributing to the rise in inheritance disputes:
- Economic Pressures: With Australians receiving an average inheritance of $706,806, often between ages 55 and 59, this windfall can be crucial for home ownership and financial security. Adeline Schiralli, special counsel at Southern Waters Legal, terms this "inheritance impatience," where individuals across socioeconomic groups feel compelled to claim their share amid rising living costs.
- Complex Family Structures: Remarriages, blended families, and non-nuclear setups are testing traditional notions of dependence and lineage. Mary-Ann de Mestre, a succession law convener at Macquarie University, points to a "perfect storm" where everyone seeks different ways to secure their inheritance, leading to more complex and emotional disputes.
- Technological Challenges: The digital age introduces new complications, such as text messages and AI-generated wills being used as evidence in court. These tools often fail to assess mental capacity adequately, adding layers of uncertainty to legal proceedings.
Legal Responses and Family Dynamics
To address the surge, legal systems are adapting. Family provision legislation, initially designed to protect widows and children, has expanded to include stepchildren in some states like South Australia. However, this has led to an increase in claims from stepchildren, adult children, and second partners who feel unfairly treated. De Mestre emphasizes that wills are not always final, often serving as just the opening move in protracted disputes.
Mediation is now mandatory in family provision cases in New South Wales, and courts are imposing repercussions for frivolous claims, including cost-capping measures. Despite these efforts, many disputes never reach legal offices, as seen in Frankie's case, where a cheap will kit caused a family rift over a $20,000 estate.
The Path Forward: Communication and Planning
Experts suggest that open communication about inheritance before death may help prevent some disputes. Vines notes that younger generations' willingness to discuss this taboo topic could mitigate conflicts, though it may not resolve deeply dysfunctional family dynamics. Rachel's story illustrates this point: when her mother considered cutting her son out of the will, she and her sisters intervened to prevent lasting damage, recognizing that the living must deal with the consequences of such decisions.
Ultimately, inheritance disputes are rarely just about money; they involve recognition, hurt, and unresolved family issues. As de Mestre advises clients, "This is not just a legal process, it is a grief process layered with conflict." With the great wealth transfer accelerating, families are urged to plan carefully and communicate openly to navigate these challenging waters.
