Do you really need to get probate?

Transcript

Hello – I’m Adrian Corbould of Turnbull Hill Lawyers

If you’re dealing with the loss of a loved one, you might be wondering whether you need to go through the probate process.

Probate can be time-consuming and costly, so it’s important to understand when it’s necessary and when you might be able to avoid it.

In this video, we’ll break down what probate is, why it’s needed, and when you might not have to go through it.

Why probate might be needed

So, what is probate?

Probate is a legal process where the Supreme Court proves of deceased’s will, is indeed their ‘last will’.

It also gives the executor of an estate the authority to distribute the deceased’s assets to beneficiaries.

Some entities like banks, super funds, and insurance companies may require a Grant of Probate before they release any assets.

Retirement villages, for example, will almost always need this before they release the deceased’s exit entitlement.

But here’s the thing: not every estate requires probate.

It’s essential to assess the deceased’s assets and liabilities with your solicitor to determine if it’s necessary.

When probate might not be needed

Now, let’s talk about situations where probate might not be required.

Property held as joint tenants:

If the deceased owned property as a joint tenant with someone else, such as a spouse, that property automatically passes to the surviving owner.

No probate is needed in this case.

For example, if a wife and husband own their home as joint tenants and one passes away, the surviving spouse automatically takes full ownership without needing probate.

Low-value assets:

If the deceased’s assets are of low value, such as small bank accounts or minor shareholdings, probate might not be necessary.

Different financial institutions have their own thresholds for when probate is required, typically ranging from $20,000 to $80,000. Check with the bank.

Intestacy:

If someone dies without a will (intestate), you won’t need a grant of probate but will need to apply for ‘Letters of Administration.’

This is a similar process to probate but applies in situations where there is no will or the named executors cannot fulfill their duties.

How to determine if probate is needed

So, how do you figure out if probate is necessary?

Start by compiling a list of all the deceased’s assets and liabilities.

Consider how these assets are held—are they in joint names or solely in the deceased’s name?

Contact the institutions holding these assets to determine their specific requirements for probate.

If you find that probate is indeed required, especially for larger assets like real estate, you’ll need to go through the process.

But if the estate is small or the assets are low in value, you might be able to avoid it.

Conclusion

Probate can seem daunting, but understanding when it’s needed can save you time and money.

If you’re unsure whether you need to go through probate, consult with a solicitor who can help you make the best decision for your situation.

Thanks for watching.