If a person dies with:

1. Property (e.g. the family home) or land; and/or
2. $15,000.00 or more held in any one bank, insurance or superannuation fund…

…then an application must be made to the High Court for either a Grant of Probate if they left a Will, or for Letters of Administration if there is no Will.

Without the Court’s approval the estate’s assets cannot be accessed and distributed to the beneficiaries.

The exception to this rule is in the case of modest estates, where assets do not meet the threshold required for Probate or Letters of Administration.

If you do not own land, and are wishing to maximise the distribution to your beneficiaries’ then it can make sense to arrange your assets so that there is less than $15,000.00 held in any one bank or fund.

This can be achieved by either splitting your money between several banks or funds, or, in suitable situations, by putting your money into a joint account, thereby ensuring the funds can pass directly to the surviving account holder.