Forfeiture Rule (Qld)

The forfeiture rule is a long-standing legal principle with significant implications for wills and estate law in Queensland. At its core, the rule prevents a person who unlawfully kills another from financially benefiting from their crime. The rule reflects a broader legal maxim that no one should profit from their wrongdoing. In the context of wills and estate law, this policy is known as the forfeiture rule. This article explains the forfeiture rule as it applies in Queensland, and its impact on wills and estate law.

What is the forfeiture rule?

The forfeiture rule is a common law principle, meaning it originates from judicial decisions rather than legislation. It was first articulated in the English Court of Appeal case of Cleaver v Mutual Reserve Fund Life Association [1892], where the court held that a wife who was convicted of her husband’s murder was not entitled to the funds from her husband’s life insurance policy. The court ruled that public policy should prevent a guilty person from receiving money derived from their own criminal act. Decades later, the Australian High Court endorsed the English decision and adopted an absolute forfeiture rule in the case Helton v Allen (1940). Today, the forfeiture rule applies to all cases involving wrongful death, regardless of the killer’s motivations, the nature of the killing (such as manslaughter) and any moral justification for the killing (such as defensive homicide).

While there are jurisdictions in Australia that have codified the forfeiture rule into legislation, Queensland continues to rely on the common law precedent. Under this precedent, the forfeiture rule applies when a person has unlawfully killed another. For estate law, this typically means that the killer is disqualified from:

• inheriting under the will of the deceased;
• receiving an intestate share of the deceased’s estate if the deceased died without a valid will;
• claiming life insurance proceeds where the deceased was the insured party; and
• receiving any property or benefit the deceased may have left for the killer under a trust or other arrangement.

The forfeiture rule also applies in Queensland when the wrongful act creates an obvious benefit for the offender, even if they do not receive the benefit directly. An example would be if the offender’s child were to benefit from the victim’s estate.

Due to its continued reliance on the common law, there is no exception for intent in Queensland, and all cases of murder, manslaughter and assisted suicide cases trigger the forfeiture rule. The rigidness of this approach can be seen in the Supreme Court case of Public Trustee of Queensland v Public Trustee of Queensland [2014]. In that case, the sole beneficiary of an estate was convicted of the assisted suicide of the deceased. In his judgment, Chief Justice de Jersey noted that the common law forfeiture rule is inflexible and absolute and must be applied strictly. Once a causal relationship is established between the crime and the death, any entitlement to benefit from the estate is forfeited. His Honour was compelled to apply the forfeiture rule in this case, even though it was likely that it would be contrary to the wishes of the deceased.

It is important to note that the court can apply the forfeiture rule in the absence of a criminal conviction. Even if an offender was not found criminally responsible for a death beyond a reasonable doubt, the court can apply the forfeiture rule in a civil trial if there is sufficient evidence on the balance of probabilities. In those circumstances, the court can deprive a beneficiary of their right to inherit, even if they face no criminal punishment.

Impact of the forfeiture rule

Many wills include “substitutionary clauses” that dictate what happens if a primary beneficiary cannot inherit. These provisions are usually in place to account for the death of a beneficiary, but they can function equally well in cases of forfeiture. For example, if a child kills their parent and can no longer inherit, the will might provide that their share should pass to another named beneficiary, such as the testator’s other child. When there is no substitutionary clause in the will, the forfeited share falls into the residuary estate or is distributed according to the rules of intestacy.

If a person dies intestate (without a valid will) in Queensland, their estate is distributed according to the Succession Act 1981. The forfeiture rule excludes the killer from inheriting under this law, even if they would otherwise be entitled under the intestacy provisions. This can significantly delay the distribution of an intestate estate, particularly if the executor is waiting on the results of a criminal trial, or the outcome of a civil proceeding.

Life insurance and superannuation

The forfeiture rule extends beyond the deceased’s estate. If the deceased had life insurance or superannuation benefits payable to the killer, the rule disqualifies them from receiving these proceeds. Courts often redirect the benefits to alternate beneficiaries, such as secondary nominees or the deceased’s legal personal representative (executor or administrator).

The forfeiture rule is a vital principle in Queensland wills and estate law, ensuring that no individual profits from their wrongdoing. For any advice about the forfeiture rule or any other legal matter, please get in touch with Go To Court Lawyers on 1300 636 846.