Australia’s Multigenerational Home Boom and the Surge in Contested Wills

Contesting a Will

The cost-of-living crisis in Australia is fuelling a sharp rise in multigenerational households, and with this comes an increase in complex estate disputes and contested wills. Understanding the challenges of succession planning in multigenerational homes is critical to protecting your family's legacy.

With around one in five Australians now living in multigenerational homes and three-generation households rising by 22 per cent, families are increasingly sharing property ownership, finances, and caregiving responsibilities. These informal arrangements can create a "perfect incubator" for contested estates, elder abuse allegations, and family provision claims in NSW and beyond.

Why are estate disputes rising in Australia? In New South Wales, contentious probate filings are increasing, with experts predicting that estate disputes could quadruple as Australian property values continue to surge. Real estate frequently forms the bulk of an estate, approximately 70 per cent of succession disputes involve disagreements over property.

A key driver of estate conflict is the blurring of financial boundaries within the home. Adult children may contribute to mortgage repayments, renovations, or property maintenance. Others provide unpaid care to elderly parents. These contributions are often undocumented, leading to disputes over whether they are gifts, loans, or entitlements to be repaid from the estate. The issue is even more complex in blended families, where stepchildren, biological children, and new spouses share a household. Here, disputes often arise regarding asset ownership, caregiving contributions, and fairness in inheritance.

The “granny flat agreement” in Australia is another growing source of conflict. Commonly, an elderly parent sells their existing home to fund an extension on a child's property, with only an informal understanding that they can live there for life. Should relationships break down or the property be sold, the parent may lose both housing security and capital, often triggering expensive legal battles over property rights and family agreements.

As housing affordability in Australia declines and the population lives longer, multigenerational living is becoming a practical solution to economic challenges. However, without formal agreements and clear succession planning, what begins as a symbol of family unity may ultimately end in estate litigation and contested wills.

How can you protect your family's interests? Taking proactive steps for estate planning, formalising financial arrangements, and seeking specialist legal advice in succession law are essential to minimise risks. If you are facing challenges with a contested will or need guidance on succession planning in a multigenerational home, consult with a Dormer Stanhope estate lawyer to protect both family relationships and assets.

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