When someone dies in Australia without leaving a will, distributing the deceased person’s estate can be complicated. Letters of administration are the legal document that is required, and the person managing the estate must apply to the Supreme Court for the grant.
Find out more about the process to apply for a grant of letters of administration, who is eligible and what documents are required.
Let’s take a closer look.
What Are Letters Of Administration?
When a person dies intestate, without a will, legal authority to manage the deceased’s estate is required. Applications for letters of administration can be lodged at the Supreme Court. Letters of administration are legal documents that allow an administrator to access funds to distribute assets and pay outstanding debts, similar to the role of an executor in a probate process.
When Do You Need A Letter Of Administration?
Financial institutions, businesses and creditors require proof to allow a person access to a deceased estate, and it can be challenging to effectively administer an estate without a grant.
Letters of administration may be required; when there is no will, when the will is invalid, when executors named in the will are unable or unwilling to apply for probate, or when the valid will is annexed.
Who Can Apply For Letters Of Administration?
Several people may be eligible to apply for letters of administration, which may include any of the following;
- One of the closest next of kin, such as a spouse or adult child of the deceased person
- A person named in the will or someone eligible for a share of the estate
- An attorney or public trustee if there are no available family members
- A creditor or someone with a legal interest in the estate
How To Apply For Letters of Administration?
When applying for a grant of letters of administration, several steps are required, such as the following:
- Determine whether letters of administration or probate are required, confirm there is no valid will
- Gather the necessary documents
- Advertise the intention to apply (not required in SA & WA)
- Complete the application forms and provide the required information
- Lodge the application with the Supreme Court
What Documents Are Required?
The necessary documents to apply for letters of administration may vary from state to state, but the process involved is very similar. The following documents will be required:
- Letters of administration application form
- Affidavit from the applicant
- Death certificate
- Personal identification
- Evidence of a relationship with the deceased person, such as a marriage certificate or birth certificate
- Inventory of the deceased’s property, assets and liabilities
- The will and codicils (if applicable)
- Administration bond
The affidavit from the applicant must confirm that the deceased did not leave a will.
How Much Does It Cost?
When applying for letters of administration, several factors can influence the cost, such as how the application is completed; either through a solicitor, probate consultant or administrator.
Each state and territory in Australia has a different court filing fee structure and advertisement fee. A filing fee amount can vary depending on the gross value of the deceased person’s estate.
How Long Does It Take To Grant Letters Of Administration?
The time frame for obtaining a grant of letters of administration varies greatly depending on which state or territory the deceased resided. State regulations regarding advertisements or intention notices can significantly impact the timing.
In New South Wales, for example, the fastest turnaround time for the application process is 10-12 weeks, whereas in South Australia, the timeframe is 18-28 days.
Time frames can vary when incorrect documents are submitted to the Supreme Court, as well as delays within the court system due to outstanding requisitions. Additional factors that may influence the processing time are the court-required wait times. For example, when applying to the ACT Supreme Court website, an intention notice must remain published for at least 14 days before an application can be submitted.
What Is Letters Of Administration With The Will Annexed?
Several circumstances can result in a will becoming annexed, including the following:
- No executor nominated in the valid will
- The executor stated in the will has died
- The nominated executor is unwilling to administer the estate
- The will is invalid – either incorrectly witnessed or not signed
When a will is annexed, the document receives additional information, such as details of the person responsible for administering the estate.
When the court grants letters of administration with the will annexed, the deceased person’s estate must be distributed as per the will, even though the legal document to provide authority is not a grant of probate.
What Happens After Letters Of Administration Are Granted?
Once letters of administration have been granted, the administrator can commence management of the deceased’s estate. The first step in the process is to gather the property and assets of the estate, pay any debts and finally distribute the estate. When distributing the assets the process must be as per intestacy laws or the original will. The rules of intestacy state the hierarchy/order of how a deceased’s assets are divided amongst family members.
Summary
Managing a deceased estate can be challenging, especially if there is no will. When a person dies intestate, someone must obtain legal authority to manage the assets. Letters of administration are legal documents that allow the person administering the estate access to funds so they can distribute assets and pay outstanding debts.
In the following circumstances, a grant of administration may be required. When there is no will, the will is invalid, when executors named in the will are unable or unwilling to apply for probate, or when the will is annexed.
Several people may be eligible to apply for letters of administration including a spouse, children of the deceased person, or a person entitled to the estate.
When applying for letters of administration, several factors can influence the cost, such as who completes the application. It may be through a solicitor, probate consultant or administrator. A filing fee and advertising fee may be applicable depending on which state or territory the application is lodged.
The time frame for obtaining a grant of letters of administration varies greatly depending on which state or territory the application is lodged. Before applying for letters of administration, some state regulations require the publication of advertisements or intention notices, which can significantly impact the timing.
Once letters of administration are granted, the person managing the estate can distribute the assets, as per intestacy rules or the original will.
FAQs
What Is A Letter Of Administration?
When a person has died intestate, without a will, the legal authority to manage the deceased’s estate is required. Applications for letters of administration can be lodged at the Supreme Court. A grant of administration is a legal document that allows an administrator to access funds to distribute assets to beneficiaries and pay outstanding debts, similar to the role of an executor in a probate process.
What Is The Difference Between A Probate And A Letter Of Administration?
The Supreme Court may grant probate to an executor named in the will after the will is declared valid. The assets are distributed according to the terms stated in the will of the deceased person.
Letters of administration are granted by the Supreme Court to the administrator of an estate when the will is either invalid, annexed or when the deceased person has died intestate. The person administering the estate is generally a next of kin and must distribute the estate as per the intestacy laws.
Who Can Apply For Letters Of Administration NSW?
Several people may be eligible to apply for letters of administration, which may include any of the following;
- The next of kin, such as a lawful spouse or adult child of the deceased person
- A person named in the will or eligible for some of the estate
- An attorney or public trustee if there are no available family members
- A creditor or someone with a legal interest in the estate of the deceased person