As we step into 2025, it’s clear that relationships are evolving—and so are the challenges they bring to estate planning. With de facto relationships on the rise, advisers have a unique opportunity to guide clients through these complexities and ensure their plans reflect modern realities.
According to the 2021 Australian Census:
2,168,351 people were in a de facto relationship, compared to 8,747,135 people who were married.
De facto relationships are more common among younger people.
- In 2009-10, 22% of people aged 20–29 were in a de facto relationship, compared to 9.4% of people aged 40–49.
- De facto relationships are often a precursor to marriage, with 74% of people who married in the 2000s having lived together before tying the knot.
- For advisers, this shift highlights the importance of proactively addressing estate planning and superannuation considerations for clients in de facto relationships.
Key Considerations for Advisers
1. Legal Status: De facto relationships can exist automatically if registered or if there’s a child from the relationship. Otherwise, courts assess factors such as shared living arrangements, financial interdependence, and mutual commitment.
2. Estate Challenges: De facto partners may have the legal right to claim on an estate if they believe adequate provision hasn’t been made for their welfare.
3. Superannuation: De facto partners are classified as dependants, making them eligible to receive superannuation death benefits.
How Advisers Can Help
- Review Wills: Encourage clients to review their Will with a lawyer to ensure appropriate provisions are in place for their de facto partner, where necessary.
- Update Nominations: Support clients in reviewing their superannuation death benefit nominations. A binding, non-lapsing nomination provides clarity and reduces disputes.
- Start the Conversation: Many clients may not realise the implications of their relationship status on their estate. Raising these discussions early helps them make informed decisions.
By helping clients navigate these complexities, advisers can empower them to plan effectively for the future, protecting both their wishes and the people they care about most.
Here’s to a successful 2025, ensuring your clients are supported with clarity and confidence!
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