Succession Laws: Consultation Paper I Wills
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SUCCESSION LAWS Succession Laws CONSULTATION PAPER WILLS Succession Laws CONSULTATION PAPER WILLS PAPER CONSULTATION GPO Box 4637 Melbourne Victoria 3001 Australia Level 3 333 Queen Street Melbourne Victoria 3000 Australia Telephone +61 3 8608 7800 Freecall 1300 666 555 (within Victoria) 11 Fax +61 3 8608 7888 Email [email protected] www.lawreform.vic.gov.au VICTORIAN LAW REFORM COMMISSION VICTORIAN LAW Succession Laws consultation papers 11 Wills 12 Family Provision 13 Intestacy 14 Executors 15 Debts 16 Small Estates Printed on 100% recycled paper Published by the Victorian Law Reform Commission CHAIR The Hon Philip Cummins* The Victorian Law Reform Commission was established under the Victorian Law Reform Commission Act 2000 SPECIALIST COMMISSIONER as a central agency for developing law reform in Victoria. Dr Ian Hardingham QC* This report reflects the law as at October 2012. PART-TIME COMMISSIONERS Bruce Gardner PSM © Victorian Law Reform Commission 2012. Saul Holt SC This work is protected by the laws of copyright. Except The Hon David Jones AM* for any uses permitted under the Copyright Act 1968 (Cth) Eamonn Moran PSM QC* or equivalent overseas legislation, no part of this work The Hon Frank Vincent AO QC may be reproduced, in any matter or in any medium, * Commissioners involved in this reference without the written permission of the publisher. CHIEF EXECUTIVE OFFICER All rights reserved. Merrin Mason This publication of the Victorian Law Reform Commission REFERENCE TEAM follows the Melbourne University Law Review Association Inc, Lindy Smith (team leader) Australian Guide to Legal Citation (3rd ed, 2010). Mia Hollick Natalie Lilford Joanna O’Donohue VLRC consultation paper number 11 Elena Markushina (intern) ISBN 978-0-9872222-3-7 COVER DESIGN Succession Laws consultation papers Letterbox 11 Wills TEXT LAYOUT 12 Family Provision GH2 design 13 Intestacy 14 Executors EDITOR 15 Debts Kath Harper 16 Small Estates This publication is printed on 100% recycled paper. The paper is Forest Stewardship Council Certified to contain pulp from 100% post-consumer waste and is Made Carbon and Process Chlorine Free. Succession Laws CONSULTATION PAPER WILLS Victorian Law Reform Commission GPO Box 4637 Melbourne Victoria 3001 Australia DX 144, Melbourne Level 3, 333 Queen Street Melbourne Victoria 3000 Australia Telephone: +61 3 8608 7800 Freecall: 1300 666 555 (within Victoria) Fax: +61 3 8608 7888 Email: [email protected] Internet: www.lawreform.vic.gov.au Victorian Law Reform Commission Succession Laws: Consultation Paper I Wills Contents Call for submissions ...................................................................................................................4 Terms of reference .....................................................................................................................6 Glossary ......................................................................................................................................8 1. Background .......................................................................................................................... 11 Background to the review ................................................................................................. 11 Terms of reference ....................................................................................................... 11 The Uniform Succession Laws project ........................................................................... 11 Succession laws in Victoria ................................................................................................ 12 The Wills Act ................................................................................................................ 13 The Administration and Probate ................................................................................... 14 The Commission’s process ................................................................................................. 15 This consultation paper ..................................................................................................... 15 2. Witnessing wills and undue influence .............................................................................. 16 Introduction ...................................................................................................................... 16 Requirements for witnessing a will .................................................................................... 17 Are stricter requirements desirable? ............................................................................. 18 The witness-beneficiary rule ..............................................................................................20 Current law ..................................................................................................................20 National Committee for Uniform Succession Laws ........................................................ 21 Other jurisdictions ........................................................................................................22 Should the rule be revived in Victoria? .........................................................................22 Prevention of undue influence through other changes to the will-making process ..........................................................................................................23 Options for reform ....................................................................................................... 24 Determining whether a will reflects the will-maker’s true intentions ..................................25 Testamentary capacity ..................................................................................................25 Knowledge and approval and suspicious circumstances ................................................ 27 Fraud and forgery ........................................................................................................28 Doctrine of undue influence .........................................................................................28 2 3. Statutory wills .....................................................................................................................33 Introduction ......................................................................................................................33 Statutory wills in Victoria ...................................................................................................34 Who can apply.............................................................................................................35 Information required for an application ........................................................................35 The basis of the decision ..............................................................................................36 Determining the intentions of the incapacitated person .....................................................36 People without capacity for whom statutory wills are made .........................................36 The guiding principle ....................................................................................................37 Involvement of the incapacitated person in the hearing .....................................................40 Accessibility of the statutory will process ........................................................................... 41 Possible barriers ........................................................................................................... 41 Options for improving accessibility ............................................................................... 41 Determining who pays for the application .........................................................................43 4. Ademption ...........................................................................................................................45 Introduction ......................................................................................................................45 The ademption rule ..........................................................................................................46 Current law—the identity approach ............................................................................46 Option for reform—the intention approach ................................................................48 Acts by administrators appointed by the Victorian Civil and Administrative Tribunal ...........49 Acts by persons holding an enduring power of attorney ..................................................50 Current law ..................................................................................................................50 National Committee for Uniform Succession Laws ........................................................ 51 Other jurisdictions ........................................................................................................ 51 Options for reform .......................................................................................................52 Access to a person’s will for anti-ademption purposes .......................................................56 Current law ..................................................................................................................56 Options for reform .......................................................................................................57 Questions .................................................................................................................................58