The difference between a grant of probate and letters of administration: Do you need either?
A grant of representation is a legal document that gives the executor/administrator of an estate the legal authority to manage and distribute the assets of the deceased. Obtaining a grant of representation requires undertaking a specific process and applying to the Supreme Court of Queensland.
There are three types of grants of representation:
Grant of probate: Applicable when the deceased left a valid will which names the executor, who is making the application.
Grant of letters of administration with the will: Relevant where the deceased left a valid will which names an executor but another person is making the application.
Grant of letters of administration on intestacy: Applicable where the deceased left no will.
When do you need a grant of representation?
Whether a grant is required depends on the value and nature of the assets of the estate. For example, if you wish to transfer bank accounts from the name of the deceased to the name of the executor, each bank has a threshold and will require a grant if the value in the account exceeds that threshold.
Generally, you won’t need a grant to transfer property with the Titles Office. If the property is jointly held (and not held as tenants in common), for example, by the deceased and their spouse, a grant will not usually be necessary to transfer the property to the surviving property owner.
Why is obtaining a grant recommended?
If a grant is not required to deal with the assets of the estate, it may be a good idea to obtain a grant anyway, as it affords the executor or administrator the protection of the Succession Act 1981 (Qld):
A personal representative who in good faith and without negligence has sought and obtained a grant is not liable for any legacy paid or asset distributed in good faith and without negligence in reliance on the grant notwithstanding any subsequent revocation thereof.
An executor or administrator who has acted in good faith and not been negligent, and who has obtained a grant will not usually be liable.
Whether you need a grant or not and which grant is appropriate varies greatly depending on the circumstances of the deceased, their assets and their will. For advice on these matters, as well as advice on how to obtain a grant, contact Direct Lawyers today.