What is a Grant of Probate Or Letters of Administration?

Probate and letters of administration can be confusing terms. We explain clearly what they are so you understand which applies to you.

Legal Terms Used

In this article a Grant refers to one of the below:

• Grant of Probate (there is a Will with executors who can act);
• Grant of Letters of Administration (there is no Will); or
• Grant of Letters of Administration With Will Annexed (there is a Will with no executors).

Each of these can be explained further like this.

If There is No Will

If there was no Will, you need to determine whether you need to apply for a Grant of Letters of Administration.

A Will with executors

If there was a Will and the executor(s) are willing and able to act, you need to determine whether you need to apply for a Grant of Probate.

A Will with no executors

If there was a Will, but there are no executors appointed or able to act, you need to determine whether you need to apply for a Grant of Letters of Administration with Will Annexed.

What is a Grant?

Applying for a Grant is a process where the appropriate person applies to the Supreme Court for permission to deal with a deceased person’s assets and affairs.

If a Grant is issued, and approved by the Court, it signals means that the appropriate person has be validated by the Court.

The appropriate person can then take the Grant document and show it various organisations (such as banks, title office, super funds, ATO etc) – and they can get access to the deceased person’s information.

The Grant document gives them the appropriate person the power to do anything that the deceased person could have done, such as the ability to sell assets, open bank accounts, obtain information and anything else related to finalising the affairs of the deceased person.

The Grant document is like a form of special identification to allow someone to represent a deceased person’s estate.

Probate

Probate is the process of the court reviewing and approving a Will of a deceased person.

A special application is made to the Supreme Court by the executor(s).

Once the Court approves everything, a special stamped document is posted to the executor(s). That document is known as a Grant of Probate.

Letters of Administration

If a person died without a Will, then the next-of-kin apply to the Supreme Court for a Grant of Letters of Administration.

Letters of Administration is a process where the Court reviews the documents and checks that the right people have applied.

Generally, only the next-of-kin who are entitled to inherit under the laws of intestacy can apply for a Letters of Administration.

The next-of-kin who are applying for Letters of Administration are known as the ‘administrators.

An administrator is similar to an executor. An executor acts when there is a Will, an administrator acts when there is no Will.

Once the Court approves everything, a special stamped document is posted to the executor(s). That document is known as a Grant of Letters of Administration.

Letters of Administration With Will Annexed

If a person left a Will, but the Will does not nominate an executor, or the executor(s) nominated are unable or unwilling to act, then one or some of the beneficiaries listed in the Will may need to apply for a Grant of Letters of Administration with Will Annexed.

The application is made to the State Supreme Court. This a process where the Court reviews the documents and checks that the right people have applied.

The people who are applying for Letters of Administration with Will Annexed are known as the administrators.

An administrator is similar to an executor.

Once the Court approves everything, a special stamped document is posted to the executor(s). That document is known as a Grant of Letters of Administration with Will Annexed.

How do you know if probate or letters of administration is necessary?

There are times when a probate or letters of administration is not required.

Probate or letters of administration will generally be required in these circumstances.

• If your loved one owned real estate either in their sole name or jointly with another person as tenants in common. You can get a copy of the certificate of title to determine how the property was owned. You can order it online.
• If there is money in the deceased’s sole bank account over a certain amount. This amount depends on which bank they were with. Some banks have a threshold of $50,000, while others have a threshold of $20,0000. The bank should tell you if a Grant is required.
• If your loved one held shares in their sole name over a certain amount, usually around $20,000. The organisation holding the shares should tell you this.
• If an organisation tells you that you need to apply for a Grant in order to access funds or information about the deceased’s affairs. For examples, the ATO won’t release any information about unclaimed superannuation or tax refunds without a Grant.

You should contact the various organisations your loved one had assets with to check if a Grant is needed.

Apply for Probate or Letters of Administration

Estates Plus can help you obtain a Grant.