6 estate planning mistakes that can lead to family disputes

It’s something many people don’t like to think about, but it happens more often than you might expect.

Families fall into dispute after the loss of a loved one. Emotions run high, relationships become strained, and what should be a time of reflection can quickly turn into conflict.

A recent example involves the estate of Australian fashion designer Perri Cutten, where a legal battle has emerged over her $23 million estate. Her long-term partner of more than 30 years has taken action, claiming he was not adequately provided for in her will.

At the same time, other headlines have highlighted “Succession-style” disputes between siblings over large family estates, including the widely reported battle over Melbourne businessman Nick Andrianakos’ estate.

While these cases may seem extreme, they highlight a very real truth. Estate disputes are not just something that happens to the ultra-wealthy. They can arise in any family, often from simple oversights or misunderstandings.

The good news is that many of these disputes are preventable with the right planning and guidance. Let’s take a closer look at some of the most common estate planning mistakes and how you can avoid them.

One of the biggest triggers for disputes is when someone feels they have been left out or treated unfairly.

In the Perri Cutten estate, despite being included in the will, her long-term partner has still brought a claim, arguing that proper provision was not made for his maintenance and support. This highlights an important point. Simply including someone in your will does not necessarily prevent a challenge.

In Australia, certain people have the legal right to contest a will if they believe they have not been adequately provided for. This can include spouses, de facto partners, children, and in some cases, other dependants.

Taking the time to carefully consider who should be included and ensuring your decisions are fair and clearly documented can significantly reduce the risk of disputes.

Complex estate plans are sometimes necessary, particularly where there are significant assets or blended families. However, complexity can also create confusion.

The Perri Cutten estate included multiple trusts, staged distributions, and a wide range of beneficiaries, including children, stepchildren, and extended family. While these structures can be useful, they can also lead to uncertainty if not clearly explained.

When beneficiaries do not fully understand how an estate is structured or when they will receive their entitlements, it can create frustration and tension. Keeping your estate plan as clear and straightforward as possible, while still meeting your goals, is key.

Life doesn’t stand still, and neither should your will. Relationships evolve, families grow, and financial positions change over time. If your will does not reflect your current circumstances, it may no longer achieve what you intended.

Outdated wills are a common source of disputes, particularly when they fail to account for new relationships or financial dependencies. Regularly reviewing your will helps ensure it remains aligned with your wishes and reduces the likelihood of unexpected outcomes.

A will outlines what happens, but it does not always explain why. Without context, beneficiaries may misinterpret decisions or feel they have been treated unfairly. This is often where disputes begin.

Whether it’s a long-term partner, as seen in the Perri Cutten estate, or family members, as in the Andrianakos dispute, a lack of clear communication can quickly lead to differing expectations and conflict.

Providing a clear explanation of your intentions, whether through a statement of wishes or open conversations during your lifetime, can help minimise misunderstandings.

Your executor or trustee plays a crucial role in managing your estate and carrying out your wishes. Choosing someone who is not equipped to handle the responsibility can lead to delays, miscommunication, or conflict between beneficiaries.

This is especially important in estates involving multiple beneficiaries or complex arrangements, like those seen in recent cases. Selecting the right person, or even a professional, can provide reassurance that your estate will be administered fairly and efficiently.

It’s easy to think that disputes only happen in wealthy or complicated families.

However, the reality is that disagreements can arise in any situation where expectations, emotions, and finances intersect. The Perri Cutten case shows how partners can challenge a will, while the Andrianakos dispute highlights how tensions can arise between siblings. Different circumstances, but the same underlying issue – expectations not aligning with outcomes.

By taking proactive steps now, you can help protect your loved ones from unnecessary stress and conflict later on.

Estate planning is not just about distributing assets. It should focus on providing clarity, reducing stress, and supporting the people you care about during a difficult time. Getting it right can make all the difference.

If you are unsure whether your current arrangements reflect your wishes, or if you would like guidance on how to minimise the risk of disputes, seeking professional advice is a valuable first step. Get in touch with our Wills & Estates team to ensure your plans are clear, up to date, and designed to protect your family.

Phil is a lawyer with over 35 years of experience in private practice and over 25 years of experience in the trusts and estate planning area. As Principal Lawyer with APS Wills & Estates, Phil provides advice and prepares documentation in the areas of Wills, Powers of Attorney, Probate and Estate Administration for clients across Australia. He also provides clients with conveyancing and property law, commercial law and state tax advice services.

When Phil isn’t working, he enjoys spending time with family, reading new books, and watching new shows with some good scotch whisky, red wine and cheese. Phil also enjoys playing trombone in the Melbourne Lawyers Big Band.