LETTERS OF ADMINISTRATION
If you die without a Will or your Will is not valid, then an application for a Grant of Letters of Administration will need to be made to the Supreme Court. Intestacy commonly arises when a person dies without a valid Will, or has a Will which does not distribute the entirety of the Estate. In situations such as these the law will dictate how the intestate estate must be distributed amongst the surviving family members. If a person dies intestate the law currently dictates that the estate must be distributed amongst the surviving children and spouse of the deceased person.
The Probate Court will grant Letters of Administration to an applicant who is willing, able and authorised to administer a deceased estate. Typically, an administrator will be unable to manage the affairs of the deceased without a probate grant. Having this documentation authorises the executor to act on behalf of the deceased estate and is often required by government departments and financial institutions that hold assets of the deceased estate.
Until such time as Letters of Administration are granted the administrator has no powers to bind the estate of the deceased and therefore any action taken is at their risk personally and the risk of persons dealing with them. Once the administrator is appointed by the court they may give good receipts, transfer assets, and generally deal with the assets and liabilities of the estate as if their own.
In performing their duties an administrator must comply with laws and rules that govern the administration of estates.
There is no statutory requirement to obtain a grant, however, most banks and financial institutions will require a grant if the amount they hold for the deceased is more than $10,000. In these circumstances they will normally accept evidence of death, entitlement and signing of indemnities by the person obtaining the grant as administrator or the persons entitled on intestacy where no grant of letters of administration is required.
Dealing with a deceased estate can be emotionally overwhelming and the team at WALLACEWEIR can assist with:
Advising clients about the rights and responsibilities of an executor;
Preparing documents required for Probate of a Will or Letters of Administration;
Assisting clients to identify and collect the deceased’s assets, including dealing with banks, mortgagees, and retirement villages;
Advising clients regarding the legal order in which debts must be paid and the remaining assets distributed;
Explaining to client’s the process of distribution of the estate;
Assisting clients with any claims that may be made against an executor over administration of the estate;
Defending any claims against the estate such as claims for family provision orders under the Succession Act 1981; and
Preparing a case for a provision under the Succession Act 1981.
Disclaimer
We trust this article was insightful. If you would like to talk to our experienced Wills and Estates team, please do so by contacting chelsey@wallaceweir.com.au or catherine@wallaceweir.com.au of Wallace Law Group.
Please note that this article is written as an informative piece and you must not take the contents of this article as legal advice. Wallace Law Group accepts no liability from your reliance on this article.
