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Letters of Administration

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alice123 View Drop Down

Joined: 12/January/2018
Location: Australia
Posts: 1
  Quote alice123 Quote  Post ReplyReply Direct Link To This Post Topic: Letters of Administration
    Posted: 12/January/2018 at 21:57
Basic question but how exactly do letters of administration work?

My understanding is that the person who holds this acts as an executor of the estate but is there any oversight? For example, what is to stop them hiding and/or withholding part of the estate from one/more beneficiaries? How can the beneficiaries know if they recieved what was legally due to them?

Additionally, what happens to bills and debts while letters of administration are being applied for? For example, who pays the mortgage repayments, insurance premiums .etc? What if say, contents insurance was cancelled due to non-payment and home contents were damaged? Can someone else who does not hold letters of administration request to pay bills on behalf of the deceased to continue services until the letters can be granted and ownership transferred?   

citizen-joe View Drop Down
Senior Member
Senior Member

Joined: 09/October/2005
Location: Australia
Posts: 668
  Quote citizen-joe Quote  Post ReplyReply Direct Link To This Post Posted: 12/January/2018 at 23:59
The normal chain of events is that the person who applies for administration of an intestate estate would pay for things that fall due during the process, in anticipation of receiving administration of the estate. Accurate records should be kept so that these amounts could be reimbursed once administration is granted.

The estate is subject to the normal rules of probate so the court would need to be satisfied that all monies are properly accounted for.

Beneficiaries would receive the percentage of the estate as determined by the laws of intestacy together with a copy of the records as provided to the court. The administrator needs to properly account for his expenses and these need to be outlined in the accounts of the estate. The administrator cannot charge for his time in doing this unless that administrator is a professional (eg accountant) engaged to do this work.

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