Probate vs. Letters of Administration: A Guide to Managing a Deceased Estate

When a loved one passes away, the task of managing their final affairs can feel overwhelming. Dealing with banks, real estate, and other assets often requires a formal legal authority before anything can be done. This is where the Supreme Court of NSW steps in to issue a grant that empowers someone to manage the deceased's estate.
The two most common types of grants are a Grant of Probate and a Grant of Letters of Administration. The one you need depends entirely on one crucial factor: whether the deceased left a valid will.
Grant of Probate: When There Is a Will
A Grant of Probate is a formal document issued by the Court that certifies a deceased person's will is valid and gives the person named as the executor the legal authority to carry out the instructions in that will.
- Who applies? The executor(s) named in the deceased’s last valid will.
- What is its purpose? It confirms the executor’s role and allows them to manage the estate. With this grant, the executor can:
- Access and close bank accounts.
- Sell or transfer property, such as the family home.
- Claim life insurance and superannuation benefits.
- Pay the deceased’s debts.
- Distribute the remaining assets to the beneficiaries as specified in the will.
In essence, Probate is the legal process of bringing a will to life and giving the executor the green light to follow the deceased's final wishes.
Letters of Administration: When There Is No Will
When a person dies without a valid will or no will at all, they are said to have died "intestate." In this situation, there is no will to follow and no named executor to take charge. This is where a Grant of Letters of Administration is needed.
- Who applies? Since there's no executor, the law sets out an order of priority for who is eligible to apply to the Court to manage the estate. This is usually the deceased’s closest next of kin, starting with their spouse or de facto partner, then children, parents, and so on. The person appointed by the Court is called an administrator.
- What is its purpose? The grant gives the administrator the same powers as an executor—to collect assets and pay debts. However, the crucial difference lies in the distribution of the estate. Instead of following the instructions of a will, the administrator must distribute the assets according to a strict formula set out in NSW law (the Succession Act 2006). This is known as the "rules of intestacy."
Letters of Administration can also be required if there is a will, but the named executor is deceased, unwilling, or unable to act.
Is a Grant Always Necessary?
For very small estates, a formal grant may not be needed. If the deceased only had a small amount of money in a bank account, the bank might agree to release the funds to the next of kin without a grant. However, this is at the discretion of the financial institution. If the estate involves real estate of any kind, a grant will almost certainly be required to transfer the title.
The best way to ensure your assets are distributed according to your wishes and to simplify the process for your loved ones is to have a legally valid and up-to-date will. This allows you to choose your own executor and decide exactly who gets what, avoiding the strict, impersonal formula of intestacy law.

Senior Solicitor
Email: kristen@hntlegal.com.au
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