Why new homeowners need a will

Your biggest asset needs a plan

For most Australians, their home is their largest single asset — often worth more than everything else combined. When you buy property, estate planning becomes essential, not optional.

Without clear instructions:

Your family may be forced to sell the home to divide the estate
A surviving partner might not be able to stay in the family home
Children from different relationships may fight over their share
Significant capital gains tax implications may arise

Joint tenants vs tenants in common

How you own your property matters enormously. There are two main ways:

Joint tenants:

If one owner dies, their share automatically passes to the surviving owner(s)
This happens outside of your will — you can’t override it
Common for married couples who want the survivor to get everything

Tenants in common:

Each person owns a specific share (equal or unequal)
Your share forms part of your estate
Your will controls who inherits your share
Better for investment properties, blended families, or friends buying together

🇦🇺 Check your title: Look at your property title to confirm how you own your home. If you're unsure, check with your conveyancer or your state's land titles office.

When joint tenancy doesn’t make sense

Joint tenancy isn’t right for everyone. Consider tenants in common if:

You’ve contributed different amounts to the purchase
You have children from previous relationships
You want your share to go to someone other than the co-owner
You’re buying with a friend or family member (not a spouse)
You want your share protected for your estate

What happens to the mortgage?

If you die with a mortgage, someone still needs to pay it. Options include:

Life insurance — Can pay off the mortgage entirely
Income protection — Helps with ongoing payments during illness
Joint borrower takes over — If they can afford the repayments
Property sold — To pay the mortgage and distribute remaining equity

💡 Insurance check: When you get a mortgage, also get life insurance at least equal to the loan amount. Some lenders require this; even if yours doesn't, it's essential protection.

Protecting a surviving partner

If you want your partner to stay in the family home after you die, your will needs to be explicit. Options include:

Leaving the property outright — They own it completely
Life interest — They can live there until they die or move, then it passes to others (common in blended families)
Right to purchase — Give them the option to buy out other beneficiaries

Investment properties

If your new property is an investment:

Consider holding it as tenants in common for flexibility
Understand the CGT implications for your beneficiaries
Think about whether rental income should support specific people
Consider transferring to a trust structure in the future

What to include in your will

As a property owner, your will should address:

✅ Who inherits the property (or your share of it)
✅ Whether they must sell or can keep it
✅ What happens if you own the property jointly
✅ Any mortgage or debt attached to the property
✅ How other beneficiaries are treated if property goes to one person

Update after every property purchase

Buying a new home or investment property is a trigger to review your will. Ask yourself:

Is this asset included in my current will?
Does the distribution still make sense with this addition?
Have I considered the impact on other beneficiaries?
Is my executor capable of managing property?

What to do now

Check how your property is owned (joint tenants or tenants in common)
Review or get appropriate insurance (life cover at minimum)
Decide who should inherit the property
Consider whether ownership structure should change
Use our Asset Inventory Checklist to document all assets
Make or update your will