Have you had a loved one pass away and you need information about getting a grant of Letters of Administration? Or are you confused about the difference between a grant of probate and Letters of Administration, or what do Letters of Administration in cases of intestacy mean?
Our guide tackles the common challenges associated with Letters of Administration and provides information on what to do.
What are Letters of Administration?
Letters of administration are made when a person has died and not left a valid Will (or any Will at all). This is called dying intestate. When this happens, the assets of the deceased person are distributed by the closest next of kin.
Sometimes letters of administration are not necessary, if the next of kin is able to collect all the deceased person’s assets and distribute these to beneficiaries without argument. However, in many cases it becomes necessary to obtain a grant of probate or letters of administration from the Supreme Court.
These legal documents enable executors to deal with assets, including paying debts, selling or transferring property, managing funds and more. A grant of probate is used when an executor has been named in a valid Will, while letters of administration apply when there is no Will. Usually in these cases, the grant is made to the closest surviving next of kin of the deceased (such as a spouse or an adult child).
Who can apply for Letters of Administration on intestacy?
In most cases, when a person dies intestate and someone needs to apply to be the administrator of the estate, whoever is likely to inherit the largest portion of assets will be granted a Letter of Administration by the courts. Most of the time, the courts will grant a Letter of Administration to the deceased person’s:
- Spouse or de facto partner
- Child or children
- Next of kin (if there are no children)
In cases where there is no appropriate next of kin, or that person doesn’t want to apply for the grant, a Trustee and Guardian will be appointed by the court.
Challenges when applying for Letters of Administration
There are several challenges that can arise for executors when it comes to apply for Letters of Administration and going through the process of distributing assets in an estate.
There are several potential next of kins
When there is no spouse, the next of kin for a deceased person is their children. When there are multiple children, this can cause conflict and arguments about who is best placed to be the executor, which can further delay the process of applying for and receiving Letters of Administration.
There are time delays
The Supreme Court of Victoria processes all applications for Letters of Administration. This process typically takes four to six weeks. It can be longer if the Court needs to come back to you and ask additional questions or there is any controversy around the application. These time delays can cause problems for executors, especially if there is a need for debts of the deceased person to be paid or potential beneficiaries want to sell certain assets.
There are fees, depending on the value of the estate
The Supreme Court sets the fees to apply for Letters of Administration in Victoria. These are dependent on the gross value of the estate of the deceased person. An estate of less than $500,000 will attract a fee of approximately $62. An estate of over $3,000,000 will attract a fee of approximately $2,100.
Speak to a Lawyer
Puzzled by the complexities of Letters of Administration? The team at RV Legal can help. Chat to our team today for clear and comprehensive advice on your situation.
