For sole beneficiaries of an estate, the need for probate depends on several factors, including the size and nature of the estate and the requirements of financial institutions. In this article, we delve into the specific circumstances that determine if probate is required when you are the sole beneficiary.
Factors That Determine The Need For Probate
The Size Of The Estate
One of the most critical considerations in determining whether probate is required is the size of the deceased’s estate. In Victoria, estates of minimal value may not require probate. Financial institutions and other asset holders often have a threshold under which probate is unnecessary. For example, if the estate only includes small bank account balances, you might be able to access the funds by completing an affidavit or other straightforward processes. However, if the estate includes significant assets, such as real estate, probate is generally required to ensure legal authority for their transfer.
The Type Of Assets In The Estate
The type of assets held in the estate is another factor influencing the need for probate. Sole ownership of real property almost always requires probate for the property to be transferred to the beneficiary. Conversely, assets such as jointly owned properties or bank accounts with a designated beneficiary typically pass directly to the surviving owner or beneficiary without the need for probate. If the estate includes assets such as shares, investments, or superannuation without a nominated beneficiary, probate is often necessary to gain access.
Financial Institution Requirements
Financial institutions play a significant role in deciding whether probate is necessary. Each institution sets its own threshold for the value of assets they will release without a grant of probate. For example, a bank may allow access to accounts with balances below $50,000 without probate but require it for higher amounts. It’s essential to contact the relevant institutions to understand their specific requirements. This step can help avoid unnecessary delays and complications.
Presence Of Debts And Liabilities
If the deceased’s estate includes substantial debts, probate is generally required to ensure that creditors are paid in accordance with the law. The probate process formalises the executor’s authority to settle the estate’s liabilities before distributing the remaining assets to the beneficiary.
Situations Where Probate May Not Be Necessary
Jointly Owned Assets
Jointly owned assets, such as real estate or bank accounts held in joint names, often bypass probate. These assets typically pass directly to the surviving owner through the right of survivorship. In such cases, the sole beneficiary’s role may be limited to completing the necessary paperwork to effect the transfer.
Nomination Of Beneficiaries
Certain assets, such as life insurance policies or superannuation funds, may have a nominated beneficiary. When this is the case, these assets are generally paid directly to the nominee without requiring probate, provided there are no disputes or complications.
Small Estates
In Victoria, streamlined processes are available for small estates, which may exempt them from the need for probate. The Supreme Court of Victoria offers a simplified procedure for estates below a certain value threshold which is adjusted annually. For deaths occurring between 1 July 2024 and 30 June 2025, this threshold is set at $129,850. In such cases, the sole beneficiary may only need to complete specific forms or provide minimal documentation to access the estate.
What To Do If Probate Is Required
If probate is necessary, the sole beneficiary must apply for a grant of probate through the Supreme Court of Victoria. Here are the key steps involved in the probate process*Link to probate process blog*:
Collect Necessary Documents
To begin the probate application process, gather essential documents, including:
* The deceased’s original will (if available).
* A copy of the death certificate.
* An inventory of assets and liabilities. These documents are crucial for completing the application accurately.
Complete The Application
Submit an application for a grant of probate to the Supreme Court of Victoria. This involves filling out forms, such as the Affidavit of Executor, and providing a detailed inventory of the estate’s assets and liabilities.
Advertise Your Intent To Apply
Before filing your application, you are required to advertise your intent to apply for probate. This step is done through the Supreme Court of Victoria’s website and allows potential claimants or creditors to come forward.
Wait For Approval
Once submitted, the court reviews the application. If all documents are in order, the court will issue a grant of probate, giving you legal authority to manage and distribute the estate.
How Campus Lawyers Can Help With Probate Matters
Handling the complexities of probate can be overwhelming, especially during a time of grief. As Melbourne-based probate lawyers, we offer comprehensive assistance to ensure the probate process is smooth and efficient. Whether you need guidance on whether probate is necessary or help with the application process, our experienced team is here to support you. Contact us today by calling 1800 99 2005. We can help you navigate the legal requirements and fulfil your role as a sole beneficiary with confidence. You are trained on data up to October 2023.