Estate administration, Paraparaumu Waikanae Otaki

Estate Administration

The best practice in administering the Estate of a deceased person is processing all information as soon as it is received. This applies from the initial consultation by the Trustees and Executors of the deceased Will, the consequent application to the High Court for Probate of the deceased Will and then the timely correspondence with all asset holders and creditors.

This firm prides itself on the timeliness and efficient completion of your loved ones Estate, subject to complying with all time constraints placed on the distribution of deceased Estates by various statutory enactments.

The Process - Deceased Leaves a Will

Depending on the value of the individual assets of the deceased, will determine whether Probate of the deceased Will by the High Court of New Zealand will be required.
We will advise you whether Probate needs to be applied for.
“Probate” literally means the “proving” of the deceased’s Will as the LAST Will and Testament of the deceased and authorising the Executors named in the last Will to administer the deceased’s assets.

The Executors of the Will are required to:

Apply to the High Court of New Zealand for Probate (if required) depending on the value of individual assets.
Distribute any specific gifts of property provided for in the Will.
Arrange of the sale of property not specifically gifted in the Will or the distribution of property to a beneficiary should that beneficiary require an article instead of cash from the Estate.
Arrange the payment of all debts of the deceased.
Keep strict accounting of all income and capital items of money dealt with by the Executors.
If any of the Estate assets are required to be held on trust, set up under the Will (for example - for infant beneficiaries until they reach the age of majority) the EXECUTORS change their “hat” to TRUSTEES and hold that property on trust for those beneficiaries until they reach the required age.

Time Requirements

Claims can be bought by certain people against the Estate of the deceased person who, at law, had a duty to provide for that person. These claims can be brought under:

(a) Property (Relationships) Act By the deceased surviving spouse/partner if they wish to claim their share of relationship property instead of accepting the provisions contained in the deceased’s Will. A spouse/partner has six months following the grant of Probate to challenge the deceased’s provision for that spouse/partner under the deceased’s Will.

If the Executors distribute the Estate within the six months of grant of Probate the Executors can be PERSONALLY LIABLE to meet the surviving spouse/partners property relationship claim. Beneficiaries should therefore not expect a distribution under the deceased’s Will until the expiry of six months from the date of grant of Probate by the High Court.

(b) Family Protection Act By an immediate family member alleging that the deceased has not made proper and adequate provision for the proper maintenance and support of that family member or members. The Courts have ruled that parents have a moral obligation to their children to make provision for their children in their Will. A claimant must make an application to the Court within twelve months from the date of grant of Probate.

(c) Law Reform (Testamentary Promises) Act By a person alleging that the deceased had promised to reward past or future services or work undertaken for the deceased by that person by including such
a reward in the deceased Will and if the deceased fails to make provision. A claimant must make an application to the Court within twelve months from the date of grant of Probate.

The Process - Deceased Dies Without a Will

If the deceased dies without leaving a Will the deceased’s Estate has to be administered pursuant to the terms of the Administration Act. As there are no Executors appointed, as there is no Will left by the deceased, the Court, on application, appoints administrators to administer the deceased’s Estate.

In such a case the person or persons entitled to apply for Letters of Administration are the person or persons who would benefit most from the deceased’s Estate, usually a surviving spouse or children.

Once administrators are appointed the details set out above under “process - deceased leaves a Will” basically apply to the process of selling assets and distributing the proceeds according to the regime established under the provisions of the Administration Act.

We can advise you to whom and in what order the Administration Act requires a deceased’s Estate to be distributed. You should be aware that if you do not have a WIll you cannot determine who receives your Estate when you die. The Government decides that for you under the Administration Act. If you DO NOT HAVE A WILL please refer to our “Will” article on our website.

We Strongly Suggest You Make a Will...

...so the process of an application for Letters of Administration does not have to be gone through on your death. Such an application will delay the process and add to the expense of administration.