Inheritance Agreement (Deed of Family Arrangement) — Australia
DEED OF FAMILY ARRANGEMENT
(Inheritance Agreement)
This Deed of Family Arrangement (the "Deed") is made on [Agreement Date] at [Agreement City], [Estate Governing State], Australia.
PARTIES
(1) EXECUTOR / ADMINISTRATOR: [Executor Name], of [Executor Address] (the "Executor").
(2) BENEFICIARIES AND OTHER PARTIES: As set out in Schedule 1 to this Deed.
This Deed is governed by the laws of [Estate Governing State], Australia.
BACKGROUND
A. [Deceased Name] (the "Deceased") died on [Deceased Date Of Death] while domiciled in [Estate Governing State], Australia.
B. The estate of the Deceased is being administered on the following basis: [Estate Basis].
C. Grant of probate or letters of administration: [Probate Details]
D. The parties to this Deed are the executor (or administrator) and all beneficiaries of the estate who have agreed to vary the distribution of the estate on the terms set out in this Deed.
E. Each party to this Deed has obtained, or has been advised to obtain, independent legal advice regarding the terms of this Deed and its consequences, including in relation to family provision claims, stamp duty, and capital gains tax.
1. DEFINITIONS AND INTERPRETATION
1.1 In this Deed:
- "Deceased" means [Deceased Name], who died on [Deceased Date Of Death];
- "Estate" means the entire estate of the Deceased, including all real property, personal property, bank accounts, investments, business interests, and other assets;
- "Original Distribution" means the distribution of the Estate as it would have occurred under the [Estate Basis], as described in clause 3 of this Deed;
- "Varied Distribution" means the distribution of the Estate as agreed between the parties under clause 4 of this Deed;
- "Succession Act" means the succession legislation applicable in [Estate Governing State];
- "ATO" means the Australian Taxation Office.
2. PROBATE AND ADMINISTRATION
2.1 The Estate is being administered by [Executor Name] as Executor or Administrator.
2.2 Grant details: [Probate Details]
2.3 The Executor acknowledges their obligation to administer the Estate in accordance with this Deed and the applicable Succession Act of [Estate Governing State], and to distribute the Estate to the beneficiaries in accordance with the Varied Distribution set out in clause 4 of this Deed.
3. ORIGINAL DISTRIBUTION
3.1 But for this Deed, the Estate would have been distributed as follows under the [Estate Basis]:
[Original Distribution]
3.2 The parties acknowledge the original distribution as described above and agree to vary it on the terms of this Deed.
4. AGREED VARIED DISTRIBUTION
4.1 In consideration of the mutual agreements and releases contained in this Deed, the parties hereby agree that the Estate shall be distributed in the following varied manner:
[Agreed Variation]
4.2 The Executor shall administer and distribute the Estate in accordance with the Varied Distribution set out in clause 4.1 above, rather than in accordance with the Original Distribution.
4.3 Each party acknowledges that by accepting the Varied Distribution, they are releasing all claims to any amount or property they would otherwise have received under the Original Distribution in excess of what they receive under the Varied Distribution.
4.4 The Executor shall complete the administration of the Estate and make the distributions contemplated by this Deed as soon as reasonably practicable after execution of this Deed and satisfaction of all estate liabilities.
5. CONSIDERATION
5.1 The parties enter into this Deed in consideration of the following: [Consideration]
5.2 Each party acknowledges receipt of adequate consideration for the variations agreed to in this Deed.
6. STAMP DUTY
6.1 [Stamp Duty Acknowledgement]
6.2 The parties acknowledge that the stamp duty treatment of a Deed of Family Arrangement varies by state and depends on the specific assets involved, the relationship of the parties to the Deceased, and the timing of the deed relative to the date of death. The parties have been advised to seek independent legal and taxation advice in relation to stamp duty.
7. CAPITAL GAINS TAX AND INCOME TAX
7.1 CAPITAL GAINS TAX. The parties acknowledge that a Deed of Family Arrangement may have CGT implications under the Income Tax Assessment Act 1997 (Cth). Under the ATO's approach, a beneficiary who redirects their entitlement to another person may be treated as having received and then disposed of the entitlement, potentially triggering a CGT event. The parties should obtain tax advice from a registered tax agent.
7.2 INCOME TAX. The Executor shall lodge all outstanding income tax returns of the Deceased and the Estate as required by the Income Tax Assessment Act 1936 (Cth) and the Income Tax Assessment Act 1997 (Cth).
7.3 The parties acknowledge that each of them may have individual tax consequences arising from their receipt or relinquishment of estate assets under this Deed and are advised to seek independent tax advice.
8. REPRESENTATIONS AND WARRANTIES
8.1 Each party represents and warrants that:
- they have full legal capacity to enter into this Deed;
- they have read and understood this Deed;
- they have obtained, or have been advised to obtain, independent legal advice before signing this Deed;
- no undue influence, duress, or misrepresentation has been exercised or made in connection with their execution of this Deed;
- they have disclosed to the other parties all material facts within their knowledge relevant to the Estate and to this Deed.
9. GENERAL PROVISIONS
9.1 ENTIRE AGREEMENT. This Deed constitutes the entire agreement between the parties in relation to the distribution of the Estate and supersedes all prior negotiations, representations, and understandings.
9.2 AMENDMENT. This Deed may only be amended by written agreement signed by all parties.
9.3 SEVERABILITY. If any provision of this Deed is invalid or unenforceable, the remaining provisions shall continue in full force and effect.
9.4 GOVERNING LAW. This Deed is governed by and shall be construed in accordance with the laws of [Estate Governing State], Australia.
9.5 LEGAL ADVICE. Each party acknowledges that they have been advised to seek independent legal advice from a qualified solicitor before executing this Deed. This Deed is a legally binding instrument and should not be signed without independent legal advice.
EXECUTED as a Deed on [Agreement Date] at [Agreement City], [Estate Governing State], Australia.
SIGNED by the EXECUTOR / ADMINISTRATOR
Full name: [Executor Name]
Address: [Executor Address]
Capacity: Executor / Administrator of the Estate of [Deceased Name]
Signature: _______________________________
Date: [Agreement Date]
In the presence of:
Witness full name: _______________________________
Witness address: _______________________________
Witness signature: _______________________________
SIGNED by the BENEFICIARIES
(Each beneficiary party must sign in the presence of an independent adult witness)
BENEFICIARY 1
Full name: _______________________________
Address: _______________________________
Signature: _______________________________
Date: _______________________________
In the presence of:
Witness full name: _______________________________
Witness signature: _______________________________
BENEFICIARY 2
Full name: _______________________________
Address: _______________________________
Signature: _______________________________
Date: _______________________________
In the presence of:
Witness full name: _______________________________
Witness signature: _______________________________
BENEFICIARY 3 (if applicable)
Full name: _______________________________
Address: _______________________________
Signature: _______________________________
Date: _______________________________
In the presence of:
Witness full name: _______________________________
Witness signature: _______________________________
SCHEDULE 1 — PARTIES (BENEFICIARIES)
[Beneficiary Parties]
Executor / Administrator
________________
Signature
Date: ________________
Beneficiary 1
________________
Signature
Date: ________________
Beneficiary 2
________________
Signature
Date: ________________
What Is a Inheritance Agreement (Deed of Family Arrangement) — Australia?
An Inheritance Agreement (Deed of Family Arrangement) in Australia records arrangements for dealing with a person's estate and the distribution of assets among beneficiaries, consistent with succession requirements under the Succession Act 2006 (NSW).
In Australia, the ability of beneficiaries to enter into a Deed of Family Arrangement derives from the fundamental principle that a beneficiary's entitlement under a will or intestacy is their property — a chose in action — that they may deal with by agreement with the other beneficiaries. Australian courts in all jurisdictions have consistently upheld properly executed Deeds of Family Arrangement as binding legal instruments, provided they satisfy the requirements of a valid deed (including execution as a deed with witnesses) and are supported by genuine consideration from each party.
The Deed of Family Arrangement is one of the most important and widely used instruments in Australian estate administration. It serves a variety of critical purposes: resolving potential family disputes before they escalate into expensive litigation; achieving a more practical or emotionally satisfactory distribution of specific assets (such as the family home, a business, or a collection) than the will's generic provisions would provide; restructuring the distribution for income tax or CGT efficiency; accommodating beneficiaries who wish to disclaim their entitlements (for example, to reduce their own tax liability or to redirect assets to the next generation); and settling family provision claims without the cost, delay, and uncertainty of contested court proceedings.
The applicable succession legislation in each Australian state and territory provides the framework within which a Deed of Family Arrangement operates. Key legislation includes the NSW Succession Act 2006, VIC Administration and Probate Act 1958, QLD Succession Act 1981, WA Administration Act 1903, SA Administration and Probate Act 1919, TAS Administration and Probate Act 1935, ACT Administration and Probate Act 1929, and NT Administration and Probate Act 1969.
The legal framework governing the Inheritance Agreement (Deed of Family Arrangement) — Australia in Australia draws on several key statutes and regulatory bodies. Under state succession legislation — including the Succession Act 2006 (NSW), Wills Act 1997 (Vic), and Succession Act 1981 (Qld) — the Supreme Court of each state administers probate. The Trustee Act 1925 (NSW) and equivalent state Acts govern trustee obligations. The Australian Taxation Office (ATO) administers estate taxation. Section 7 of the Succession Act 2006 (NSW) sets formal requirements for valid wills. The Privacy Act 1988 (Cth) applies to personal data held by executors and administrators. Parties executing a Inheritance Agreement (Deed of Family Arrangement) — Australia in Australia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Succession Act 2006 (NSW) sets the foundational requirements.
When Do You Need a Inheritance Agreement (Deed of Family Arrangement) — Australia?
A Deed of Family Arrangement is appropriate in a wide range of estate administration situations:
Resolving family disputes about estate distribution. Where beneficiaries are in disagreement about how the estate should be divided — whether because they believe the will is unfair, because circumstances have changed since the will was made, or because the will does not address specific situations adequately — a Deed of Family Arrangement allows all parties to reach a negotiated outcome without costly litigation.
Settling family provision claims. Where an eligible person has made or is threatening to make a family provision application to the Supreme Court, a Deed of Family Arrangement can document the agreed settlement between the claimant, the other beneficiaries, and the executor. This avoids the cost and uncertainty of contested proceedings.
Achieving a more practical distribution. Where a will distributes the estate in percentage shares but the primary asset is a family home that cannot be easily divided, a Deed of Family Arrangement can allocate the home to the beneficiary who needs it most (for example, the surviving parent or a beneficiary with children) in exchange for a cash payment or reduction of their other entitlements.
Tax-effective restructuring. A Deed of Family Arrangement can be used to redirect assets to beneficiaries who are taxed at lower marginal rates, to take advantage of the beneficiary's individual CGT concessions, or to redirect assets into a trust structure for long-term tax efficiency.
Disclaimer and redirection. A beneficiary who wishes to disclaim their entitlement — for example, to reduce their own tax liability, or to redirect their inheritance to their children — can formally document that disclaimer and redirection in a Deed of Family Arrangement.
Estate with no will (intestacy). Where the deceased died without a will, the intestacy rules of the applicable Succession Act will determine how the estate is distributed. If that distribution does not reflect the family's actual needs and wishes, a Deed of Family Arrangement can vary it by agreement.
What to Include in Your Inheritance Agreement (Deed of Family Arrangement) — Australia
A well-drafted Australian Deed of Family Arrangement contains several essential provisions.
Party identification: All parties to the deed — the executor (or administrator) and every beneficiary affected by the variation — must be clearly identified with their full legal name and current address. Any beneficiary who is not a party to the deed cannot be bound by its terms, and their entitlements cannot be varied without their consent.
Deceased estate details: The deed should clearly identify the deceased person, the date of death, the governing state or territory, and the basis of administration (will or intestacy). The grant of probate or letters of administration number and date should be referenced.
Original distribution: The deed must clearly state what the distribution would have been under the original will or intestacy rules. This provides the baseline from which the variation is made and confirms that all parties understand what they are giving up and receiving.
Agreed varied distribution: The agreed new distribution must be stated with complete clarity and specificity. Ambiguity in the varied distribution clause is the primary source of post-deed disputes. Each asset, amount, and beneficiary must be unambiguously identified.
Consideration: To be enforceable as a contract, the deed must be supported by consideration — typically, the mutual surrender of existing entitlements and the release of any claims. Executing the document as a formal deed (under seal) provides an additional basis for enforceability without consideration under property law.
Family provision release: If any party is releasing a right to make a family provision claim, this must be expressly stated. Depending on the jurisdiction, court approval may be required for the release to be binding.
Stamp duty acknowledgement: The deed should acknowledge the stamp duty implications and specify who will bear the cost of any duty payable. State-specific advice is essential.
CGT and tax provisions: The deed should acknowledge the potential CGT and income tax consequences for each party and require each party to seek independent tax advice.
Execution as a deed: The document must be executed as a formal deed — signed, witnessed, and delivered — to confirm maximum legal enforceability. Each party should have the deed independently witnessed.
Additional compliance elements for a Inheritance Agreement (Deed of Family Arrangement) — Australia used in Australia include: Under state succession legislation — including the Succession Act 2006 (NSW), Wills Act 1997 (Vic), and Succession Act 1981 (Qld) — the Supreme Court of each state administers probate. The Trustee Act 1925 (NSW) and equivalent state Acts govern trustee obligations. The Australian Taxation Office (ATO) administers estate taxation. Section 7 of the Succession Act 2006 (NSW) sets formal requirements for valid wills. The Privacy Act 1988 (Cth) applies to personal data held by executors and administrators. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Inheritance Agreement (Deed of Family Arrangement) — Australia (Australia) [Legal document template]. Forms Legal. https://forms-legal.com/australia/estate-planning/estate/inheritance-agreement-australia
"Inheritance Agreement (Deed of Family Arrangement) — Australia (Australia)." Forms Legal, 2026, https://forms-legal.com/australia/estate-planning/estate/inheritance-agreement-australia.
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howpublished = {\url{https://forms-legal.com/australia/estate-planning/estate/inheritance-agreement-australia}},
note = {Free legal document template. Based on Succession Act 2006 (NSW)}
}Also available for these jurisdictions:
Frequently Asked Questions
A Deed of Family Arrangement (also called a family agreement on estate or inheritance agreement) is a legally binding contract between the beneficiaries of a deceased estate — and commonly the executor or administrator — by which the parties agree to vary the distribution of the estate from what the will, or the intestacy rules, would otherwise direct. The deed allows beneficiaries to restructure the inheritance to better reflect the current needs and circumstances of the family — for example, redirecting the family home to the family member who needs it most, settling potential disputes before they reach court, achieving a more tax-effective distribution, or accommodating a beneficiary who wishes to disclaim their entitlement. A Deed of Family Arrangement is recognised under Australian succession law as a binding legal arrangement, provided it is properly executed as a deed and supported by consideration (or the mutual surrender of rights). Courts in all Australian jurisdictions have consistently upheld properly executed deeds of family arrangement.
Yes. All adult beneficiaries of a deceased estate in Australia can enter into a legally binding Deed of Family Arrangement to vary the distribution of the estate from what the will directs. This is because a beneficiary's interest in an estate — their right to receive what the will gives them — is a form of property that can be surrendered, redirected, or traded with other beneficiaries by contract. The Deed of Family Arrangement does not amend the will itself (the will remains unchanged), but it changes the practical outcome of the estate administration by directing the executor to distribute the estate according to the agreed varied distribution rather than the will's terms. All parties affected by the variation must consent to and sign the deed. The executor has no power to unilaterally vary the will's distribution — they can only do so with the agreement of all beneficiaries expressed in a formally executed deed.
The stamp duty treatment of a Deed of Family Arrangement varies significantly by state and territory. In NSW, under the Duties Act 1997 (NSW), certain transfers of property pursuant to a Deed of Family Arrangement may be exempt from duty if they are within the class of transfers among family members connected with the administration of the estate. In VIC, under the Duties Act 2000 (VIC), transfers pursuant to a deed of family arrangement may attract concessional treatment in some circumstances. In QLD, SA, WA, and TAS, the applicable Duties Act provisions may treat the redistribution as a dutiable transaction depending on the nature of the assets and the relationship of the parties. The timing of the deed relative to the date of death is also significant — deeds executed promptly after death are more likely to attract concessional treatment. Given the complexity and state-by-state variation, it is essential to obtain specific advice from a solicitor and state revenue authority before executing a deed that involves real property or other dutiable assets.
Under the applicable succession legislation in each Australian state and territory — including the NSW Succession Act 2006 Chapter 3, the VIC Administration and Probate Act 1958 Part IV, and the QLD Succession Act 1981 Part IV — eligible persons (including spouses, de facto partners, children, and in some states other dependants) may make a family provision claim against the estate if they believe the will, or the intestacy distribution, has not made adequate provision for their proper maintenance and support. A Deed of Family Arrangement may include a release of these family provision rights as part of the overall settlement. However, certain important rules apply: in NSW, under Succession Act 2006 s.95, a release of family provision rights that is not made in connection with a family provision application requires court approval to be binding; in other states, the position varies. Additionally, any family provision claim that has already been filed in court proceedings cannot be settled by a deed alone — it requires a court order to finalise the settlement and dismiss the proceedings.
The capital gains tax (CGT) implications of a Deed of Family Arrangement are governed by the Income Tax Assessment Act 1997 (Cth) and are complex. The ATO has addressed this issue in tax determinations including TD 2012/22 and ATO interpretive decisions. Generally, if a beneficiary has a vested and indefeasible interest in the estate (i.e., they are absolutely entitled to receive specific assets), a redirection of that interest to another person may constitute a CGT event under s.104-10 of the ITAA 1997 (CGT Event A1 — disposal), with the beneficiary treated as having disposed of their interest at market value. However, if the deed is executed before the executor has completed the estate administration — particularly in the period before probate is granted or while the estate is still 'in administration' — the ATO may treat the arrangement as a variation of the testamentary gift rather than a disposal, which may reduce or eliminate the CGT consequences. The deceased date of death is also relevant for the 12-month CGT discount calculation. All parties should obtain specific tax advice from a registered tax agent before executing the deed.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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