Inheritance Rules in NSW: What Heirs and Families Need to Know in 2026

As we head into March 2026, NSW families — from Sydney’s bustling suburbs to the Hunter Valley, Central Coast, South Coast and regional towns — face the same timeless question: “Have I done enough to protect my loved ones?”

While there is no sweeping new inheritance law commencing on 1 March 2026, the combination of rising estate disputes, the latest statutory legacy increase, and the realities of modern blended families means now is the perfect time to review your will and estate plan.

Here’s what every NSW resident needs to understand under the current Succession Act 2006 (NSW) — and why acting before mid-2026 could save your family stress, legal fees and heartbreak.

How Intestacy Works in NSW (When There’s No Will)

If you die without a valid will, your estate is distributed according to fixed rules:

- Your spouse or de facto partner receives all personal and household effects + the statutory legacy ($603,091.72 from 29 Jan – 29 Apr 2026) + half of the remaining estate if there are children.

- Your children (or their descendants) share the other half equally — regardless of age, gender or birth order.

- De facto and same-sex partners have identical rights to married spouses.

- Step-children can inherit in certain circumstances if they were wholly or substantially dependent on you or lived with you as part of the family.

These rules are fairer than many people realise — but they are blunt. They don’t take into account who cared for you in your final years, who contributed to the family business, or special needs of any child.

Family Provision Claims — NSW’s Safety Net (and Growing Headache)

Under the Succession Act, eligible people can ask the Supreme Court for a larger share if the will (or intestacy rules) fail to make “adequate provision” for their proper maintenance and advancement.

Eligible applicants in NSW include:

- Spouse or de facto partner (including same-sex)

- Children (biological, adopted, step-children in some cases)

- Grandchildren (if dependent)

- Former spouses

- Anyone in a close personal relationship who was dependent

NSW has some of the broadest “notional estate” rules in Australia — the Court can even claw back assets you gave away in the last 3 years in certain cases. This is why family provision claims are rising sharply, with the NSW Supreme Court seeing increasing numbers of contested estates.

Blended Families and Second Marriages — The NSW Reality

Sydney and regional NSW have high rates of blended families. A common trap: the second spouse inherits everything, leaving adult children from the first relationship with little or nothing. The law tries to balance this, but clear, updated wills are the only reliable protection.

No Inheritance Tax — But Other Costs Still Apply

Australia (including NSW) still has no death duties or inheritance tax. However, capital gains tax on inherited assets, stamp duty on transfers, and legal fees from disputes can still erode an estate significantly.

Five Practical Steps Every NSW Family Should Take Right Now

1. Update or create your Will  

   Costs typically $800–$3,000 for a comprehensive will + enduring powers of attorney + binding death benefit nominations. A good Sydney or regional NSW solicitor can do this in one or two appointments.

2. Have the family conversation  

   Discuss your wishes openly. Many NSW families now use a neutral family mediator to keep things calm.

3. Review superannuation and life insurance  

   Binding nominations expire every 3 years. Make sure they align with your will — super often forms a large part of NSW estates.

4. Consider testamentary trusts  

   Extremely useful in NSW for asset protection, tax planning, and controlling distributions (especially for blended families or children with relationship/financial issues).

5. Document contributions and conversations  

   Keep records. They are powerful evidence if anyone later makes a family provision claim.

Expert Advice from NSW Succession Lawyers

“Most people think ‘it won’t happen to me’ — until it does,” says a leading Sydney estates solicitor. “With Sydney property prices still high and more blended families than ever, a simple, up-to-date will is the cheapest insurance you’ll ever buy.”

The message from the NSW legal community is clear: proactive planning now prevents expensive, public, and emotionally damaging Supreme Court battles later.

The Bottom Line for NSW Families

Whether you live in Sydney’s eastern suburbs, the Blue Mountains, Newcastle, Wollongong, or further west in Orange or Dubbo, your legacy is about more than money — it’s about peace and fairness.

There may not be a dramatic new law landing in March 2026, but 2026 is still the year to act. Property values, family dynamics and the rising cost of disputes mean small changes today can protect your loved ones for decades.

Book that appointment with a NSW-accredited Wills & Estates specialist this month. Your family will thank you.

FAQ – Quick Answers for Busy NSW Families

Does my existing will still work?  

It might — but many pre-2020 wills don’t adequately cover de facto relationships, step-children or modern assets. Get it reviewed.

Will this create more fights?  

Only if you stay silent. Clear communication plus good planning dramatically reduces disputes.

Is there still no inheritance tax in NSW?  

Correct — unlike some countries, we don’t have one.

What about property in another state?  

You may need separate advice or a will that deals with multiple jurisdictions.

Should I talk to my kids?  

Yes. Transparency prevents surprises and resentment.

If you’re in Sydney, Newcastle, Wollongong or anywhere in regional NSW and ready to sort your estate plan, reach out to a local qualified wills and estates lawyer today. March will be here before you know it — and your family’s future is worth protecting.