What is a grant of Letters of Administration?

TONY makes a will leaving the whole of his estate to his three children.

He appoints his brother as his executor.

When Tony passes-away many years later, his children take the will to Tony’s bank and ask for the proceeds of his bank accounts to be released to them.

The bank manager informs them that Tony’s brother, as executor, must apply to have the funds released.

The children explain to the bank manager that unfortunately, their uncle is also deceased.

They are informed that the bank therefore requires Letters of Administration.

The children make an appointment with a solicitor and ask them to write a letter of administration.

Unfortunately, it is not that simple.

A solicitor cannot write a letter of administration.

‘Letters of Administration’ is in fact a term that refers to a formal grant that is made by the Supreme Court.

The grant is similar to a grant of probate and the process involves filing a Summons and supporting Affidavits with the Court.

When the Court makes the grant, it posts a physical document, bound in red cardboard, carrying the seal of the Court, to the children’s solicitor.

Certified copies of this physical grant can then be used to realise the assets of the estate.

The children then attempt to use the grant to realise Tony’s superannuation.

The superannuation fund informs them that the balance of the fund does not automatically form part of Tony’s estate and in the absence of a binding death benefit nomination, the super fund can decide whether to pay the balance to the children, Tony’s estate or to any other dependents.

The superfund embarks on a drawn-out line of enquiry spanning several months.

If Tony had obtained proper estate planning advice and updated his affairs, these headaches could have been avoided.

If YOU would like a particular issue addressed, please email me at manny@tblaw.net.au or call me on (02) 66 487 487.