Family Provision: What is a Crisp Order

A crisp order (sometimes called a portable life estate) gets its name from the 1979 unreported case of Crisp v Burns Philp Trustee Company Limited [NSWSC, 18 December 1979 whereby a widow was granted a mere right of occupancy in her husband's will.  The Court however granted her a crisp order which meant that the home became in essence an accommodation fund granting her the ability to meet her needs for the remainder of her life. Crisp orders allow the value of the home to be transferred to other property like a retirement home or unit.  Upon the death of the recipient, the remainder of the estate passes to the intended beneficiaries under the original will.

The benefit of a crisp order is that it provides for the recipient for their life but also preserves the testators original intention of the property passing to the intended beneficiary. The downside of a crisp order in family provision claims is that the finalisation of the estate is postponed until the recipient dies.

A court will consider a number of factors when granting a crisp order such as the length of the marriage, any provision provided for the spouse in the will and the financial capacity of the spouse. It is very much a subjective exercise and will depend on the circumstances in each case.  In any event, clear and considered estate planning can avoid the necessity for family provision claims and the necessity of these type of orders. See how we can help you with your estate planning.