Probate and Letters of Administration

Understanding Probate and Letters of Administration — NZ

Finding yourself responsible for a loved one’s estate upon their passing can be an overwhelming situation for many, especially when it comes to understanding your legal obligations.

If you’re curious to understand more about the process and how Probate and Letters of Administration work in NZ, Caring Estates can help. Keep on reading to learn more about the differences between the two and why they are so important when it comes to managing your loved one’s estate after they have passed.

What is the Difference Between Probate and Letters of Administration

In New Zealand, Probate and Letters of Administration are two different legal processes related to the management and distribution of a deceased person’s estate. As the person managing an estate, whether you require Probate or Letters of Administration will depend on the circumstances surrounding the Will of the deceased.

Probate legally validates a person as the executor of a deceased person’s estate when the deceased person has left a valid Will. It confirms the appointment of the executor(s) named in the Will and grants them the legal authority to administer the estate in accordance with the deceased person’s wishes. 

In New Zealand, Probate is obtained through a High Court application and is required when an estate is worth more than $15,000. Once Probate has been granted by the court, it allows the executor(s) to collect, manage, and distribute the assets of the deceased to the appropriate beneficiaries.

Letters of Administration come into play when a person dies without leaving a valid Will and, in some cases, may also be required even if there is a Will. This may happen when the Will either does not name an executor, or the named executor is unable or unwilling to act. 

Much like Probate, you must apply to the High Court for Letters of Administration. Once obtained, they authorise the applicant(s), known for this purpose as the administrator(s), to handle a deceased person’s estate according to the laws of intestacy. These laws determine how the estate will be distributed in the absence of a Will. 

In most circumstances, the administrator(s) will be a family member of the deceased or their next of kin. As the administrator(s) of the estate, their role is similar to that of an executor who has been granted Probate.

What is the Purpose of Probate and Letters of Administration?

So, now you know the difference between the two, but why exactly are Probate and Letters of Administration on intestacy necessary in NZ, and what is their overall purpose? Simply put, they are both required to facilitate the proper administration of a deceased person’s estate and to protect the rights of everyone involved in the process.

By obtaining Probate or Letters of Administration, your position as the executor or administrator will be legally validated, giving you full authority to act on behalf of the estate. Such legal validation is often required when dealing with financial institutions, government agencies, and other entities that hold or manage the deceased person’s assets. 

This can help with a range of processes, including but not limited to: 

  • Taking control of particular assets, such as bank accounts and investments
  • Notifying certain institutions of the deceased’s passing, such as Inland Revenue, insurance companies, service providers, and NZ pension or super funds
  • Cancelling important documents, including the deceased’s driver’s licence or passport

Probate and Letters of Administration protect the rights of everyone involved by making sure everything is correctly carried out according to the deceased’s wishes and/or New Zealand law. This includes your rights as the executor or administrator and the rights of beneficiaries, creditors, and anyone else who has influence over how the deceased’s assets are distributed. 

These rights are protected by ensuring all parties are appropriately informed and are given the opportunity to raise a dispute or make a claim over certain assets before they are distributed.

Probate and Letters of Administration provide a structured framework for resolving any disputes that may arise regarding the management and distribution of the estate. 

In cases where there is a Will, Probate ensures interested parties can present their claims or contest the validity of the Will and enables a fair and impartial resolution.

In cases where there is no Will, Letters of Administration can help resolve these disputes in a similar way by ensuring they are handled according to the proper legal processes. 

Letters of Administration can also help when there is no Will and multiple individuals have a claim to be the administrator of an estate. This is because they allow the court to appoint whoever they deem most appropriate as the administrator(s) of the estate, thus providing clarity and preventing potential conflicts among those involved.

Probate and Letters of Administration provide a legal framework for the executor(s) or administrator(s) to distribute assets to the rightful beneficiaries stated in the Will or determined by laws of intestacy. 

As the executor or administrator, this ensures you have a clear legal framework when distributing the assets, streamlining the process and ensuring everything is properly carried out and recorded. As a result, this legal framework also reduces the risk of any valid disputes or challenges to the ownership of these assets in the future.

Need Help Managing an Estate? Contact Caring Estates Today

If you’re looking for an estate lawyer who can help you navigate and better understand Probate or Letters of Administration, Caring Estates can help. Reach out today to discuss your circumstances and allow Caring Estates to provide you with the compassionate and transparent services you need.

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