Understanding Letters of Administration in New South Wales

What happens when one dies without a Will? This means a person has died ‘intestate’ and if the deceased held assets in NSW then Letters of Administration need to be applied for.

 

What Are Letters of Administration?

Letters of Administration is legal document issued by the Supreme Court that grants an individual or entity the authority to manage and distribute the estate of a deceased person who has not left a valid will. This document appoints an administrator to handle the deceased’s assets and liabilities according to the laws of intestacy in NSW.

 

When Are Letters of Administration Needed?

Letters of Administration are required when:

1. The Deceased Did Not Leave a Will: If a person dies intestate (without a will), there is no appointed executor to administer the estate.

2. The Will is Invalid: Sometimes, a will might be found to be invalid due to various reasons such as lack of testamentary capacity or improper execution.

3. The Executor Named in the Will is Unable or Unwilling to Act: If the named executor is unable or unwilling to fulfill their duties and a substitute executor has not been mentioned in the will a court may issue Letters of Administration to an appropriate person.

 

 Intestacy Laws in NSW

If someone dies without a will in NSW, their estate is distributed according to the Act. The order of priority generally is:

1. Spouse or Domestic Partner: If there is a surviving spouse or domestic partner, they are usually entitled to the bulk of the estate.

2. Children: If there is no spouse, the estate is divided among the children. If a child has predeceased the deceased, their share may go to their own children.

3. Other Relatives: If there are no direct descendants, the estate may be distributed to other relatives such as parents, siblings, or more distant relatives.

 

The Application Process

1. Determine Eligibility: The applicant must be a person or entity who has a legitimate interest in the estate, such as a spouse, child, or creditor.

2. Gather Required Documents: Essential documents include;

• The death certificate of the deceased.
• Evidence of the deceased’s assets and liabilities.
• Details of the deceased’s family and any potential beneficiaries.

3. File an application: The application is submitted to the Supreme Court of NSW. This involves completing the necessary forms and paying the applicable fees. These applications are quite detailed. One needs to prove they have standing to act and can show the court. This is where a solicitor can help you through the process various affidavits are required to be provided to the court showing that you have standing, proof that there is no will, if deceased has children and spouse from previous marriage need to work out statutory legacy for each beneficiary.

4. Provide Notice:  Notice of the application must be given to potential beneficiaries and other interested parties. This ensures that anyone who might be affected by the administration of the estate is informed.

5. Court Review: The Supreme Court reviews the application. If satisfied that the applicant is suitable, the court will issue the Letters of Administration.

6. Administer the Estate: Once granted, the administrator can take control of the deceased’s assets, pay any debts, and distribute the remaining estate according to the laws of intestacy.

 

Responsibilities of an Administrator 

An administrator is responsible for:

– Identifying and securing the deceased’s assets.

– Paying off any outstanding debts or liabilities.

– Filing necessary tax returns and handling other financial obligations.

– Distributing the remaining estate according to intestacy laws, which prioritize distribution to the spouse, children, or other relatives as outlined by legislation.

Navigating the process involves understanding both the legal requirements and the responsibilities of an administrator. For those facing this situation, seeking legal advice or assistance can be invaluable to ensure compliance with all legal obligations and proper handling of the estate.

Let the team at Chamberlains guide you through the process. We’re With You.