Probate & Estate Administration

There are 3 types of a grant of representation being:

• A grant of probate
• A grant of letters of administration with the will
• A grant of letters of administration on intestacy.

One of the first steps in estate administration is to decide whether you need to obtain a grant of representation.

Probate is the formal recognition by the Supreme Court of the deceased’s will and authorises the executor to act for the estate. The authorised person under probate is called the executor.

A grant of letters of administration is similar to probate. The grant appoints a person to administer the deceased’s estate. Here the authorised person is called an administrator.

Whether you need to obtain a grant of representation or not will depend on a number of factors, including the type of assets in the estate.

For example if the deceased had a bank account with a balance over the bank’s limit for releasing the funds without a grant of representation, then the executor has limited options but to apply for a grant of representation. Each bank and financial institution has its own guideline for when a grant of representation is required.

Some advantages of obtaining a grant of representation include:

• Limiting the personal representative’s liability for debts where a statutory notice to claimants has been provided
• Formal recognition of the right to act for an estate.

The next stage in administering an estate includes:

• Preserving the deceased’s assets
• Calling in the deceased’s assets, such as closing bank accounts, selling shares, closing superannuation accounts and transferring real property into the personal representative’s name
• Paying debts of the estate.

Once you have decided whether to obtain a grant of representation, the deceased’s assets are called in and estate debts are paid, the next step is to lodge tax returns (if required) and distribute the estate.

The executor or administrator is required to lodge a tax return:

• For the deceased up to the date of death
• For the estate, from the date of death to the end of the financial year, and for each financial year until the estate is finalised.

If there is a will then it is a case of distributing the estate in accordance with the terms of the will.

Where there is no will, then distribution is in accordance with the law of intestacy.

Unless certain steps are taken, a personal representative is liable for debts owed by the deceased.

This is a very difficult period and an emotional one for those involved. If you have been appointed as an executor we recommend you call us initially to obtain complimentary advice over the phone regarding what your legal responsibilities and obligations are.

Once we know the assets, liabilities and any issues involved, we can advise you of the steps and timeframes necessary to finalise the estate administration.