What happens when you die without a Will in Victoria?
Disclaimer: Probate Consultants is not a legal practice. Information on this website about the law on any subject is general in nature and is intended to provide an outline only. It is not comprehensive, nor does it constitute legal or financial advice.
When someone dies, they often leave behind property, assets and occasionally debt. This is known as their ‘estate’. In order to manage and finalise the estate, all property and assets must be collected, debts paid, and assets distributed. If there is one, the assets are distributed according to the Will and often Probate VIC is required. Sometimes, however, people pass away without a Will.
Learn more about Probate and how long it takes in VIC here.
When someone passes away without a valid Will in VIC, they have died intestate. This means that their assets are distributed according to a legal formula laid out by the Victorian government in Part IA of the Administration and Probate Act 1958 (VIC). These are known as the laws of intestacy and are based on the deceased’s relationships at the time of their passing.
When someone dies intestate their assets usually go to their closest Next-of-Kin, but if they don’t have a partner, children, or other living relatives, their assets go to the State of Victoria.
Probate Consultants empower Self-Represented Applicants (SRAs) to apply for Grants of Letters of Administration (LOA) by providing specialist guidance and support. With 300+ Five-Star Reviews on Google, we are Australia’s Premium LOA Solution known for making the process Fast, Affordable and Easy.
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What to do when someone dies without a Will in VIC?
When someone dies without a Will in Victoria, it is important to establish what assets and liabilities they had and then determine if a Grant of Letters Administration is required to administer their estate. If LOA is required, an application is made to the Supreme Court of Victoria via its online platform RedCrest-Probate.
A Grant of Letters of Administration is issued by the Supreme Court to the person(s) who is entitled to benefit from the estate, usually the deceased’s closest Next-of-Kin. This person is appointed Administrator of the estate.
The Grant of LOA gives the Administrator the right to deal with the estate of the person who died intestate and proves legal authority to asset holders and other institutions.
What happens after Letters of Administration are granted?
A Grant of LOA appoints an Administrator of the estate. Generally speaking, the Administrator is responsible for:
- Collecting all property and assets
- Paying any debts
- Distributing the assets according to the laws of intestacy.
Assets may include:
- Real estate
- Money in bank accounts
- Shares
- Aged-care bond (RAD)
- Personal possessions
- Superannuation
- Life insurance
- Motor vehicles
Debts may include:
- Loans
- Mortgages
- Credit cards
- Taxes
- Bills
- Costs incurred by the Administrator or other persons to finalise the deceased estate – i.e. funeral costs, legal expenses, ongoing bills
Who is entitled to a deceased person’s assets when they die without a will?
Victoria changed its intestacy laws in 2017. From 1 November 2017, the entire estate of the deceased goes to their spouse or domestic partner (partner) as long as there are no children from other relationships.
Where the deceased did not have a partner, entitlement is according to the following hierarchy:
- Children
- Parents
- Siblings
- Grandparents
- Aunts and Uncles
- Cousins
Partners and Children
Where the deceased leaves a partner and they had children with that person only, the partner takes the whole of the deceased’s estate. The children do not have a separate entitlement.
Where the deceased leaves a partner as well as children from other relationships, the estate is distributed accordingly:
- The partner takes:
- The personal chattels; and
- The Statutory Legacy (from $452K); and
- Interest on the Statutory Legacy from date of death to payment; and
- One-half of the balance of the estate.
- The children from other relationships are entitled to the other half of the balance of the estate in equal shares.
Note:
- If the estate value is less than the Statutory Legacy, the partner takes the whole estate.
- If the deceased leaves more than one partner, then the partners – in the absence of a distribution order or agreement – will take the Partner’s Share equally among them.
Intestacy Facts
If no living relatives are located, the estate is passed on to the Victorian government.
When a beneficiary dies before the Will maker (testator) and the Will does not provide for what happens in this situation, a partial intestacy may occur. This means the assets that the deceased beneficiary was entitled to are distributed according to the law of intestacy.
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Summary
Probate is not required in VIC when a person has died without a Will. In this situation, Letters of Administration may be required to deal with their estate and the application process can be overwhelming and daunting. Whilst most applications are lodged by solicitors or trustee companies, many people align to managing this very important, and personal, application themselves as an SRA. For those that do, Probate Consultants have created a seamless LOA application experience that makes the process Fast, Affordable and Easy.
After 4+ years helping Self-Represented Applicants with astounding results, Probate Consultants is proudly Australia’s Premium Probate and LOA Solution with affordable Fixed-Fees and Fast approval times.
Call 1300 561 803 for a Free Consultation or book a time for call-back.
