Dying Without a Will in NSW: The Statutory Legacy Has Increased
When a person dies without a valid will in New South Wales, the law—not the family—determines who receives the estate. A recent CPI adjustment has increased the statutory legacy that may be payable to a surviving spouse, making the cost of relying on the intestacy rules more significant.
What is the statutory legacy?
The statutory legacy is an indexed amount under section 106 of the Succession Act 2006 (NSW). It is relevant where a person dies intestate and leaves a spouse together with one or more children who are not also children of that spouse—for example, children from an earlier relationship.
In that situation, the surviving spouse is generally entitled to the deceased’s personal effects, the statutory legacy and one-half of the remaining estate. The deceased’s children share the other half of the residue. If the estate is too small to pay the statutory legacy in full, the spouse may receive the whole estate.
What has changed?
The amount is adjusted by reference to the Consumer Price Index. Following the Australian Bureau of Statistics release of June 2026 CPI data on 29 July 2026, the statutory legacy increased to $615,054.96 for deaths occurring from 30 July 2026 until the next relevant CPI figure is published.
The amount that applies is determined by the date of death, not the date on which an application for administration is filed. The figure can therefore differ between estates administered at the same time.
Why does this matter for blended families?
Intestacy may produce a result that the deceased never intended. In a blended family, the surviving spouse may receive a substantial priority amount before the balance is divided. Children from an earlier relationship may receive less than expected, particularly where the estate’s main asset is the family home.
The rules can also create practical pressure. An administrator may need to value and sell assets to satisfy competing entitlements. Superannuation, jointly owned property, life insurance and assets held in trusts may not form part of the estate at all, so the apparent value of a person’s wealth may not match the assets available under the intestacy rules.
Practical step
A current will allows you to nominate an executor and state how estate assets should be distributed. Estate planning should also consider non-estate assets, including superannuation nominations and jointly held property.
Review your will after marriage, separation, divorce, the birth of a child, a new relationship, or a significant change in assets. These events can alter family circumstances, ownership structures and, in some cases, the legal effect of an existing will.
If a family member has died without a will, obtain advice early about who is entitled, who should apply for letters of administration, the applicable statutory legacy and whether any family provision claim or other dispute may arise.
Sources
This article provides general information only and is not legal advice. Entitlements depend on the family circumstances, the assets that form part of the estate and the law applying at the date of death. Please obtain advice about your particular situation.
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