When someone thinks of a lawyer, their mind may wander straight to high legal fees. Engaging a probate lawyer to assist with the administration of an estate may be costly however, estate administration can be a complex process and if errors are made along the way, could be far more costly in the long run.
In this article, we aim to provide some information on the workings of a probate lawyer and the how they assist clients with the administration of estates.
What is probate?
Put simply, probate is the process of getting a Will verified by the Supreme Court of Victoria and giving the appointed executor the authority to manage assets, settle debts and distribute to beneficiaries.
Depending on the assets of an estate, the probate process can be complex and time consuming. When already dealing with the loss of a loved one, we often find the probate process adds another layer of stress to all. By appointing a lawyer who knows the complexities involved in probate, they will guide you through the process and will likely be far less stressful and efficiently completed.
What is the probate process?
The process can be lengthy and there are a number of steps involved.
- Application for Grant of Representation : The process will begin with the submission of the Will (if any) to the Supreme Court of Victoria. To submit the Application correctly, there are a number of steps including dealing with banks and other institutions, advertising and drafting the Application itself.
- Appointment of executor : The Will names an executor who is appointed to act on behalf of the estate and part of the probate process is the Court approving this appointment. The executor is responsible for managing the estate and has a duty to act in the best interest of the estate and the beneficiaries. Therefore, this may not be a straight forward role and a probate lawyer will assist in the fulfilling of these duties.
- Assets : One of the important roles of a probate lawyer is to assist with the identification of the assets of the estate. This includes bank accounts, real estates, investments, etc.
- Debts and taxes : A probate lawyer will assist an executor on how to handle the debts of an estate and will work with creditors and accountants to deal with income tax, Capital Gains Tax, etc.
- Distribution to beneficiaries : Once all debts and taxes are settled, the probate lawyer assists in distributing the remaining assets in to the beneficiaries in accordance with the Will (of if no Will, in accordance with intestacy laws). Some Wills may be ambiguous about beneficiaries or may have been drafted in such a way that distribution is not a simple calculator and this is where the expertise of a probate lawyer can help interpret the distributions to be made.
But why engage a probate lawyer?
Not all estates are complicated and need the assistance of a probate lawyer however, others, especially those with significant assets, multiple beneficiaries, or potential disputes, can benefit greatly from professional guidance.
Some scenarios where a probate lawyer is particularly valuable are:
- Complex Estates : If an estate includes multiple properties, companies, businesses or investments, a probate lawyer can assist in the different requirements for each.
- Family Disputes : The death of a loved one is an emotional time and during the probate process, it is common for family disputes to arise. If a dispute or a contest to the Will is likely, a probate lawyer will work with the estate to manage this process.
- Interstate Assets : If there are assets held in other states, the process of dealing with those assets may be different to here in Victoria. Working with a probate lawyer allows them to navigate this process for you.
- Debt and Insolvency : If an estate has significant debts, a probate lawyer can help manage creditors and protect the interests of the beneficiaries.
Estate Planning
By using a probate lawyer at the time of making your Will, you can reduce the stress of your loved ones after your death as you have considered potential issues such as tax matters, conflicts and will ensure your Will is legally valid.
Conclusion
A probate lawyer can be costly however, they play a vital role in managing the legal intricacies of an estate. Through their expertise and guidance, the sometimes overwhelming probate process is efficiently managed by your probate lawyer resulting in a ease of the burden on families when already dealing with the loss of a loved one.
How can Nevett Ford help?
Our Wills and Estates Team has been assisting executors and clients with the administration of estates for many years. We understand that losing a loved one is a difficult and emotional time and it is our pleasure to be able to help clients navigate the legal steps that need to be taken at this time.
For more information, please contact us at melbourne@nevettford.com.au or on +61 9614 7111.