What makes inheritance disputes suited to mediation?
Inheritance disputes typically involve:
- Family members who will have an ongoing relationship after the dispute resolves
- Finite assets (the estate) that litigation costs diminish for all parties
- Emotional and relational dimensions that a court cannot address
- A desire for privacy — court proceedings are public; mediation is confidential
All four features make mediation particularly well-suited compared to adversarial litigation.
Family provision claims
The most common inheritance dispute is a family provision claim — where a family member believes they were inadequately provided for in the will. These claims are brought under state succession legislation (Succession Act 2006 (NSW), Administration and Probate Act 1958 (Vic), or equivalent). They are almost always resolved through mediation in New South Wales, where the Supreme Court refers most claims to mediation before hearing.
What outcomes can mediation produce?
- A lump sum payment to the claimant from the estate
- Transfer of a specific asset (such as a property) in full or partial satisfaction of a claim
- A revised distribution of the estate with all parties' agreement
- A payment schedule where the estate does not have liquid assets available
- Resolution of executor conduct complaints alongside distribution
Cost comparison
| Path | Typical cost (each party) | Timeframe |
|---|---|---|
| Mediation | $3,000–$10,000 | 1–3 months |
| Supreme Court hearing | $50,000–$300,000+ | 2–4 years |
Estate litigation costs are often paid from the estate — reducing what all beneficiaries receive, not just the losing party. Mediation protects the estate for the family.
Sources