A practical guide during a difficult time
Losing a family member or close friend is never easy. Alongside the emotional impact, there are often practical matters that need to be attended to. The following guide outlines the key steps involved in administering an estate, to help you navigate this process with greater clarity and confidence.
Locating the Will
If the deceased left a Will, one of the first steps is to locate it. This is often held by the law firm that prepared it. The Will confirms who has been appointed as executor and sets out how the estate is to be managed and distributed.
If there is no valid Will, an application will usually need to be made to the High Court for Letters of Administration to appoint an administrator.
Confirming funeral arrangements
A Will may include guidance about funeral arrangements, burial, or cremation. Where these wishes are recorded, it is helpful for family members and executors to be made aware of them early so they can be taken into account.
Understanding the estate
The next step is to identify the deceased’s assets and liabilities. This may include bank accounts, KiwiSaver, investments, property, and any outstanding debts.
Whether a grant of Probate or Letters of Administration is required will depend on the nature and value of those assets.
In general, a grant is required if:
- The deceased held assets in their sole name exceeding $40,000; or
- The deceased owned land in their sole name
Assets held jointly, such as a family home or joint bank account, will usually pass directly to the surviving owner and do not form part of the estate.
Applying for a grant
Where a grant is required, a lawyer will prepare and file the necessary documents with the High Court. The executor or administrator will need to swear or affirm an affidavit confirming the death and their entitlement to act. Your lawyer will help guide you through this process and ensure everything is completed.
Managing the estate
Once Probate or Letters of Administration has been granted, the executor or administrator can begin managing the estate. This involves collecting assets, settling any debts, and distributing the estate in accordance with the Will or, where there is no Will, under the Administration Act 1969.
Professional guidance at this stage can help ensure everything is handled correctly.
The role of an executor or administrator
Acting as an executor or administrator carries important responsibilities, which may include:
- Arranging the funeral
- Protecting estate assets and arranging the sale or transfer of property where needed
- Paying funeral expenses, taxes, and outstanding debts
- Keeping clear and accurate records
- Distributing the estate in accordance with the Will or the rules of intestacy
Timing and potential claims
If no claim has been notified, the estate can generally be distributed six months after Probate or Letters of Administration has been granted.
Claims are most often made by family members, particularly children, or by individuals who believe they were promised provision by the deceased.
Distributing an estate before the six-month period has passed carries some risk. If a successful claim is made later, the executor or administrator may be personally liable. For this reason, it is usually advisable to wait until the six-month period has expired.
Support when you need it
Administering an estate can feel daunting, particularly during a time of loss. If you have been appointed as an executor or would like guidance at any stage, our experienced team is here to help you through the process.
If you need assistance managing a loved one’s affairs, please get in touch.
This article is brief and general in nature. You should not treat it as legal advice and should seek professional advice before taking any action in relation to the matters dealt with in this post. Armstrong Murray accepts no liability for losses suffered by any person or organisation who may rely directly or indirectly on this post.
