Mid Mountains Legal Blog

Letters of Administration (NSW)

Anthony Steel

The Supreme Court of NSW (The Court) issues a grant of letters of administration to appoint an applicant as the administrator of a deceased estate. This type of grant is issued when either:

  1. the appointed executor is unavailable to take responsibility for the estate; or
  2. the deceased died partially or wholly intestate.

What are letters of administration?

The Court can issue letters of administration for the estates of people who resided in or owned property in New South Wales. The grant authorises the applicant to assume responsibility for the assets and liabilities of the deceased estate.

Asset holders such as government departments and banks will generally release assets to the administrator only after sighting letters of administration.

Where the deceased’s Will appoints an executor, letters of administration are generally not required. However, when the nominated executors are unable or unwilling to act in the role, an application for a grant of administration with the Will annexed must be made to appoint an administrator.

Who can apply for a grant of letters of administration?

The Probate and Administration Act 1898 (NSW) lists the categories eligible applicants. The court will issue letters of administration to a competent adult who is a potential beneficiary or creditor of the estate.

A person living outside Australia cannot apply for a grant of letters of administration. If the only eligible beneficiary lives overseas, they must appoint a solicitor to apply for a grant of letters of administration in their stead.

If there are several eligible parties, they can either apply jointly, or one beneficiary can apply with the written endorsement of any other beneficiaries.

If the parties cannot agree who should apply for the grant, the court will assess the merits of the competing claims. The court generally makes the grant to the deceased’s closest living relative.

If assessment of the competing claims is likely to delay administration of the estate, the court can appoint a special administrator temporarily pending the choice of an actual administrator. A special administrator has limited powers over the estate.

If no relative is willing to apply, the court can appoint the NSW Trustee & Guardian, or another interested party can apply.

What are an administrator’s duties?

The administrator is authorised to manage and protect the deceased estate according to either:

  1. the deceased’s Will; or
  2. if the deceased died intestate, according to the NSW intestacy rules.

The administrator is responsible for collecting together and valuing the estate’s assets and discharging the estate’s debts. They lodge a final tax return for the deceased and establish any discretionary trusts in accordance with the Will. They are responsible for protecting the estate..

How long does an application take to process?

An application may be filed with the court up to six months after the deceased’s death. A late application may however be accepted if:

  1. the court determines that there is a reasonable excuse for the delay; and
  2. the parties agree to the appointment of the administrator.

The administration of the estate is usually completed within a year of the date of death. If there are delays which the court considers unreasonable, it may replace the administrator.

An application for a grant of letters of administration may take several months to process.

Here to Help

Contact us for free no-obligation initial telephone advice and assistance regarding an application for a grant of letters of administration.

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