The Legal Light Justin Stack Legal traps in an early inheritance For many older people it may seem a good idea to pass on parts of their estate early, so it can benefit their children or grandchildren before they die, rath- er than leaving it all to be distributed in their will. It may be property or cash to help their offspring buy their own home. It may be handing over own- ership of a business or farm to the person they think can best succeed with it. However, wills and estates lawyer at Stacks Law Firm, Anneka Frayne, warns there are some legal traps in giving an early inheritance. Gifting assets early does not prevent others from making claims on a deceased estate through so-called "notional estate claims". "While the intentions of the parent in giving an early inheritance may be good, they should consider the financial security and wellbeing of all their offspring, as the law allows other adult children or valid claimants to a will to seek a larger share of the estate if their needs have not been taken into account," Ms Frayne said. "The estate doesn't have to be divided equally or thought of as 'fair', although it's a good idea to sit down with everyone to sort it out early to avoid family disputes. The law does require you to make adequate provision for those who need support and depended on you while you were alive." A recent judgment in the NSW Supreme Court by Justice James Hmelnitsky showed this clearly. A father had a $23 million farm which he gave to his youngest child as an early inheritance. The father thought this son was the only one of his three children interested in continuing the farm. In his will he left $600,000 each to his two older adult children. They challenged the will in court, seeking a larger slice of the estate. The judge decided the younger son would keep the farm and awarded the daughter an extra $300,000, but nothing to the elder son. One of the dangers of early inheritance is that the child then has control of the asset and may not do with it what the parent wanted. It may also be that as parents age, they may not have the financial security for their own ongoing care the asset would have given them. Sadly, there are many cases of adult children pressuring their parents into signing over assets well before they die, which leaves them struggling to meet their own needs as they age. Anyone considering bestowing an early inheritance needs to consult an independent lawyer who is an expert in wills and estates before making decisions concerning early handover of assets. STACKS LAW FIRM Tim Stack Commercial Lawyer 02 6592 6592 taree.stacklaw.com.au Partners in life The Legal Light Justin Stack Legal traps in an early inheritance For many older people it may seem a good idea to pass on parts of their estate early , so it can benefit their children or grandchildren before they die , rath- er than leaving it all to be distributed in their will . It may be property or cash to help their offspring buy their own home . It may be handing over own- ership of a business or farm to the person they think can best succeed with it . However , wills and estates lawyer at Stacks Law Firm , Anneka Frayne , warns there are some legal traps in giving an early inheritance . Gifting assets early does not prevent others from making claims on a deceased estate through so - called " notional estate claims " . " While the intentions of the parent in giving an early inheritance may be good , they should consider the financial security and wellbeing of all their offspring , as the law allows other adult children or valid claimants to a will to seek a larger share of the estate if their needs have not been taken into account , " Ms Frayne said . " The estate doesn't have to be divided equally or thought of as ' fair ' , although it's a good idea to sit down with everyone to sort it out early to avoid family disputes . The law does require you to make adequate provision for those who need support and depended on you while you were alive . " A recent judgment in the NSW Supreme Court by Justice James Hmelnitsky showed this clearly . A father had a $ 23 million farm which he gave to his youngest child as an early inheritance . The father thought this son was the only one of his three children interested in continuing the farm . In his will he left $ 600,000 each to his two older adult children . They challenged the will in court , seeking a larger slice of the estate . The judge decided the younger son would keep the farm and awarded the daughter an extra $ 300,000 , but nothing to the elder son . One of the dangers of early inheritance is that the child then has control of the asset and may not do with it what the parent wanted . It may also be that as parents age , they may not have the financial security for their own ongoing care the asset would have given them . Sadly , there are many cases of adult children pressuring their parents into signing over assets well before they die , which leaves them struggling to meet their own needs as they age . Anyone considering bestowing an early inheritance needs to consult an independent lawyer who is an expert in wills and estates before making decisions concerning early handover of assets . STACKS LAW FIRM Tim Stack Commercial Lawyer 02 6592 6592 taree.stacklaw.com.au Partners in life