If a person dies without a will, we say that they have died intestate. When this happens, there are laws in each state and territory which provide a clear order of operations for inheritance. This is to ensure that descendants and partner get the assets to which they are entitled.
The first people to be considered after a person has died are the creditors. All debts should be repaid including:
- Funeral expenses
- Taxes
- Any outstanding legal expenses or administrative expenses
Once the creditors have been paid, the assets will be divided through a number of levels starting with the deceased’s spouse and ending up with distant relatives.
So that the assets can be distributed, a person must be appointed as the administrator of the estate. They will need to apply for a grant of administration from the courts. This is really a notice which lets them withdraw the deceased’s funds from banks, pay back creditors and manage the finances as needed.
Before a grant of administration can be applied for, the following tasks must be done:
- Do a thorough search for the will
- Get the death certificate
- Lay out who is entitled to what
- Advertise your intention to apply for a grant of administration
- File the necessary paper work
Remember that applying for a grant of administration can be a long and costly process which will lead to a delay in distributing the assets of the estate. At the end of the day, it is always better to have a will.
