Australia's Inheritance Disputes Surge as Wealth Transfer Fuels Family Feuds
An ageing population, increasingly complex estate structures, and mounting cost-of-living pressures are contributing to a significant rise in contested wills across Australia. More individuals are fighting for what they perceive as their rightful inheritance, leading to heightened family conflicts and legal battles.
The Emotional and Legal Turmoil of Succession Disputes
Succession law is widely regarded as one of the most emotionally charged and incendiary areas of legal practice. Disputes over wills often involve deep-seated family dynamics and can be notoriously unpredictable in court. However, clear new patterns are emerging in this fast-evolving field.
Data from the New South Wales Supreme Court reveals a sharp increase in court-annexed mediations for succession and probate cases, jumping from 104 in 2021 to 735 in 2025. Over the same period, filings in these cases rose from 1,168 to 1,467. While the majority of wills are executed smoothly, the outliers present profound challenges.
Prue Vines, a law professor at the University of New South Wales and an expert in succession, notes that family disputes over wills can be "absolutely horrendous." She first observed a rise in such disputes three decades ago, but today's soaring house prices and deepening inequality have escalated the stakes far beyond mere family heirlooms.
The Great Wealth Transfer and Its Impact
The silent generation and baby boomers collectively hold $5.4 trillion in assets, which will be transferred to their descendants over the next 20 years. This "great wealth transfer" is unfolding against a backdrop of a population bulge nearing life expectancy, loaded with property and superannuation wealth. Combined with the prevalence of blended and non-nuclear families, wrangles over wills are becoming increasingly common.
In 2024, JBWere found that Australians receive an average inheritance of $706,806, typically between the ages of 55 and 59, according to the Productivity Commission. This windfall can represent a critical opportunity for home ownership and financial security in a society where wealth is increasingly concentrated. Access to the property ladder is now heavily reliant on parental wealth, either before or after death.
Inheritance Impatience and Societal Pressures
Adeline Schiralli, special counsel at Southern Waters Legal and a specialist in wills and estates, describes this phenomenon as "inheritance impatience," which affects individuals across all socioeconomic groups. She has witnessed disputes over very small estates, indicating that the circumstances of the claimants often drive the conflicts more than the size of the inheritance.
Charlotte, a woman in her late 50s who contested her father's will, reflects on this dynamic. "We've set up a society whereby money matters so much, a house matters so much, that you can't see others' needs," she says. "It just purely, simply comes down to greed for me. And I think you can hide greed under, 'Well, this is Mum's or Dad's wishes. This is what they wanted.'"
Complex Factors Driving Dispute Escalation
Mary-Ann de Mestre, a convener of succession law at Macquarie University and founder of M de Mestre Lawyers, identifies a "perfect storm" created by an ageing population, complex estate structures, and cost-of-living pressures. "Inheritance disputes aren't just increasing, they're becoming more complex, more emotional," she states.
Remarriages and non-nuclear families are testing traditional boundaries of dependence and lineage. Ageing populations bring the risk of dementia, leading to clashes over wills that question the testator's mental capacity. Technology introduces new challenges, with text messages and digital notes submitted as evidence of a deceased person's intentions, alongside a booming online industry of AI-generated wills that may not adequately assess mental capacity.
At De Mestre's practice in Sydney's northern beaches, clients are increasingly investing in both "pre-planning" and "post-planning" for their estates, viewing death as a point on a timeline rather than an ending. She has observed a rise in cases involving promissory estoppel, where informal promises made before death are relied upon, such as "I was promised the business and it's now going to everyone."
Legal Frameworks and Family Provision Claims
Testamentary freedom, the right to choose who inherits property, is balanced in court with moral responsibility to provide for family and dependants. Family provision legislation, originally designed to protect widows and children, has expanded. For instance, South Australia now recognises stepchildren as eligible applicants. De Mestre notes an uptick in claims from stepchildren, adult children, and second partners who feel unfairly treated.
To deter frivolous claims, recent legal developments include repercussions for mounting family provision cases without reasonable prospects. In the past 12 months, findings have shown that estates may not always cover legal costs, and cost-capping measures have been introduced. Mediation is mandatory in family provision cases in New South Wales.
De Mestre often advises clients that an expected inheritance is not a fixed entitlement but "forever fluid." She explains, "A recurring theme is surprise. People are often shocked to discover that a will is not the final word, it is frequently just the opening move." She categorises clients into two groups: those who realise they lack the stomach for litigation and those who pursue it out of principle.
The Human Cost and Emotional Fallout
De Mestre emphasises that inheritance disputes are rarely solely about greed. "This is not just a legal process, it is a grief process layered with conflict," she says. "These cases are rarely about greed – they are about recognition, hurt, and unfinished family business."
Many family breakdowns never reach solicitors' offices. Frankie, for example, cut ties with her sister after their mother's will, drawn up with a cheap kit, allocated 75% of a $20,000 estate to her sister. "It was never about the money," Frankie says, "but the way my mum's wishes were mishandled – that really hurt."
Vines has repeatedly seen grief-stricken siblings make impulsive decisions. "All of their sibling rivalry floods out," she observes. "So they'd go into litigation and, next thing, the whole family is destroyed." She suggests that delaying litigation decisions and increasing transparency about legal costs could mitigate some disputes.
Looking Ahead: Prevention and Resolution
Younger generations' openness about inheritance may help prevent some conflicts by encouraging discussions before death. However, Vines acknowledges that "you're never going to fix really super dysfunctional families." Clear communication about expectations and intentions while alive is crucial, as grudges taken to the grave leave the living to deal with the fallout.
Rachel and her sisters faced a potential imbroglio when their mother considered cutting her son out of her will. Although the extra money would have benefited Rachel's family, they intervened, fearing the emotional devastation it would cause. "Writing one of your children out of your will is really difficult – the message it sends is horrendous," Rachel notes.
As Australia navigates this era of wealth transfer, the rise in inheritance disputes underscores the need for careful estate planning, legal clarity, and familial dialogue to preserve relationships and fairness.
