The cost of dying without a Will
Wills can be a sensitive and somewhat avoided topic for many of us. It's quite common to put them on the back burner because they involve thinking about matters we'd rather not contemplate. Some individuals are deterred by the perceived expenses associated with creating a Will, while others simply haven't found the time to address this important task. But here's the crucial question: How many of us are aware of the implications that arise when we pass away without a Will in place? Understanding these consequences is vital to ensuring our wishes are respected and our loved ones are protected.
Intestate Succession Laws
To pass away intestate means to die without having a valid Will or estate plan in place to dictate how your assets and affairs should be handled after your death. If you pass away intestate, an application will need to be made to the Supreme Court for Letters of Administration.
Letters of Administration
Letters of Administration is a document providing the court’s formal approval for someone to administer the estate of the deceased. For more information about this you can refer to the NSW Trust and Guardian website.
The Letters of Administration grant the administrator the legal authority to manage and distribute the deceased person's assets, settle debts and liabilities, and carry out other responsibilities related to the estate's administration. The administrator is typically a close family member, such as a surviving spouse or adult child, but in some cases, a court may appoint a neutral third party, like a lawyer or a professional estate administrator.
Who is entitled to an intestate estate?
If you don’t have a valid Will, intestate succession laws will determine how your assets are distributed. This is enforced by the Supreme Court of NSW and generally follows a set order:
Spouse
Children
Parents
Brothers and sisters
Grandparents
Aunts and uncles
First cousins
How Much Does Letters of Administration cost?
In New South Wales, solicitors' fees related to applying for letters of administration are determined by state government regulations. These prescribed fees are calculated based on the total value of the estate assets as follows:
Fees correct as at 12/10/23
In addition, there are other fees to pay such as:
Professional fees: The Solicitor’s time spent on the application which is charged at an hourly rate. The total cost will depend on the number of hours required to complete the work.
Disbursements: In addition to their fees, solicitors may charge for disbursements, which are expenses incurred during the probate process, such as court filing fees and administrative costs.
Unintended Tax Consequences:
Intestate estates may face higher tax liabilities than those with carefully planned Wills. Without proper estate planning, your family could be burdened with unexpected tax bills that reduce their inheritance.
The cost of time
The estate administration process, which involves applying for Letters of Administration, validating the estate and distributing assets, can be considerably delayed without a Will. Your loved ones may have to endure a lengthy and potentially stressful legal procedure, and be liable for extra costs. Most of this can be avoided if you create your Estate Plan before you pass.
While thinking about end-of-life matters may be uncomfortable, not having a Will can lead to significant complications and distress for your loved ones. Creating a Will allows you to protect your assets, ensure your wishes are followed, and provide your family with clarity and peace of mind during a challenging time.
At Orman Solicitors, we’re committed to delivering the highest quality legal advice and services. We pride ourselves on providing reliable, trustworthy services, unmatched legal experience and compassion and empathy in everything we do. If you’re looking for will and estate lawyers in Sydney or Wagga Wagga, contact us to arrange a confidential discussion today. Prices start from just $400 for a simple Will.
Disclaimer: The content presented in this article is offered for informational purposes and should not be construed as legal advice or a substitute for professional guidance. If you have questions or require legal assistance, we strongly recommend consulting with a Solicitor to address your individual circumstances.