LETTERS OF ADMINISTRATION – ACT

Letters of Administration in ACT has its governing law. This goes the same for every Australian State that has its own laws governing the administration of the estate of an intestate person. In the ACT, the applicable laws are the Administration and Probate ACT 1929 (ACT). If the deceased was domiciled in the ACT and the assets were in ACT, then the law of ACT will be the applicable law. 

Applicable Court

Applications are filed at the Probate Office of the Supreme Court of ACT. A grant of Letters of Administration will generally be issued by the Court within 6 working days of the application being filed. This is the case unless additional information is required. If further information is needed, requests, known as requisitions, will generally be sent out by letter within 3 working days. 

When intestacy occurs

When a person dies leaving real property (land or anything attached to it) or personal property of any kind, that property must be distributed. The deceased can direct, during his or her lifetime, how the estate is to be distributed after death. This is done by drawing up a will. Intestacy occurs when either the whole or part of the deceased’s estate is not disposed of by a will. Total intestacy occurs when the deceased failed to make a will at all. This can also be the case when the deceased failed to make a valid will. In some cases, it is when they made a valid will, but all the beneficiaries have since died. Partial intestacy occurs when the deceased made a valid will, but the terms of the will do not dispose of the whole of the estate.

Do I need to obtain letters of administration?

Not necessarily.

The main reason that a grant of letters of administration is required is that some organisations which hold assets of the estate will not release them to the administrator for distribution without sight of a grant of representation from the Supreme Court. You will need to make a list of everything the deceased owned or was entitled to. Then, make contact with the financial institutions concerned to establish whether they require a grant. This will be more relevant for smaller estates. For larger estates comprising real estate, a grant of representation will almost certainly be required. 

The distribution of an intestate estate

State law allows for the appointment of an administrator. This individual will administrate the deceased’s estate in the absence of a will appointing an executor chosen by the deceased. This person is given the duty of paying any debts the estate owed. Also, they have the duty of distributing the assets in accordance with the rules of intestacy. They are given legal authority to act under a court order which is known as the grant of letters of administration. 

Who can apply for letters of administration?

Administration and Probate ACT 1929 (ACT) sets out the appointment of the administrator. The Court can appoint a spouse (including de facto), one or more of the next of kin. It can also be the spouse together with one or more of the next of kin. If no such person exists or if, in the opinion of the court, the person concerned is not fit to be trusted with the responsibility, the Court can grant administration to any person it thinks fit. 

The role of the administrator

On the grant of administration of the deceased’s estate, all the deceased’s assets become vested with (become the property of) the administrator. For example, if the deceased held shares in a company, upon seeing the grant from the court, the company will register the administrator as the shareholder in place of the deceased. This will enable the administrator to sell the shares of the deceased. The administrator can also distribute the proceeds in accordance with the intestacy rules discussed below. The legal authority of the administrator to deal with the deceased person’s estate has been confirmed by the court. This will satisfy those institutions who hold the deceased’s assets that the administrator has the authority to deal with those assets and will give the administrator some protection from liability in dealing with the estate. 

The purpose of the State rules of intestacy

Intestacy occurs quite frequently in Australia. The aim of the legislation in each state is to try and produce the same sort of result as if the deceased had made a will. It identifies the deceased’s closest relatives as the main beneficiaries. It also assumes that these are the people that the deceased would most want to benefit. The rules make assumptions about who the deceased is closest to. Therefore, the rules do not take account of individual circumstances. The rules are designed to act as a safety net to protect those who have failed for whatever reason to direct what they would like to happen to their assets when they die. 

Can I apply for Letters of Administration myself?

Yes.

AussieLegal offers a number of legal kits and paralegal services. This includes helping you with Letters of Administration in ACT and others that are specifically designed to help family members make a personal application and save thousands in legal fees.

Reach out on 1300 728 200 to discuss your situation with one of our consultants.

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