Administration of the estate
Administration of the estate
When a person dies leaving assets in Victoria, somebody, usually the executor of the deceased’s Will, has to deal with the administration of the estate.
The person does not have authority to deal with the assets of the Will until the Supreme Court issues a Grant of Representation, unless the estate is small.
The role of the executor
An executor is a person (or sometimes more than one person) named in a Will to carry out the wishes of the Will-maker after their death. Often solicitors or specialist trustee companies are named as executors.
The executor may have to:
- collect all the assets and have them valued, if needed
- find out what debts are owed and pay them from the money made by selling the assets
- arrange tax returns
- claim life insurance
- arrange the funeral
- apply for a grant of probate (they must be over 18 when they apply)
- distribute the estate according to Will
- take or defend legal action on behalf of the estate.
If no executor is named in the Will
If Will-maker failed to appoint an executor, usually the court needs to appoint someone to administer the estate. A person appointed by the court is called an administrator (of a Will). Often this is the beneficiary with the largest portion of the estate.
An administrator has the same responsibilities as the executor.
Grant of Representation
A Grant of Representation is a legal document issued by the Supreme Court of Victoria that allows the executor or administrator to deal with the assets of the deceased’s estate.
It is official proof that the person named in the grant is entitled to collect and distribute the estate, including:
- money held in banks or managed funds
- property to be sold or transferred
- debts to be paid.
The role of the court
The Supreme Court can make orders about:
- whether a Will is valid
- the appointment of an executor or administrator
- the administration of deceased estates.
If there's a challenge to the Will, executor can't act until this has been settled by Supreme Court.
The court can also make decisions about changes or additions to Wills and rectify any obvious errors.
Types of grants
There are four types of Grants of Representation issued by the court:
- Probate: issued if the executors named in the Will prove that the last Will is valid
- Letters of Administration with the Will annexed: issued if there is a valid Will, but the executor cannot or will not apply for a grant (usually to the beneficiary with the largest portion of the estate)
- Letters of Administration: issued if there is not a Will or there is a Will but it is not valid (usually to the next of kin of the deceased, for example, the partner or a child of the deceased)
- Limited Grants: issued if any of the above grants are limited to the estate and the time or purpose for which it is made, for example, when property is administered pending the outcome of legal proceedings concerning the Will.
To apply for a grant the Supreme Court’s forms must be completed and submitted to the Probate Office.
Find out how you can get help with Wills and estates.