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SMALL ESTATES

Stewart F McNab, Barrister

Many people die leaving only small estates, and in such cases the A&P Act makes special provisions for the procedures mentioned above to be simplified. These provisions apply both to testate and intestate estates (s.71 A&P Act).

A special section of the Office of the Registrar of Probates deals with small estates as defined by the A&P Act. See: "Probate", above, for address and contact details.

What is a small estate?

A small estate is one in which the gross value (i.e. before any debts are deducted) of solely owned assets does not exceed $50,000 where the beneficiaries are the husband or wife or children or the widowed mother of the deceased; or in which the gross value of solely owned assets does not exceed $25,000 and the beneficiaries are other than the surviving spouse, children or widowed mother of the deceased (s.71 A&P Act).

Apart from the solely owned assets as described above, the deceased may have had unlimited jointly owned assets such as a house, bank account, etc. and the estate will still fall into the category of a small estate.

Where the executor or administrator of a small estate lives in the Melbourne metropolitan area, the staff of the Small Estates Office will arrange for a grant of representation.

Where the executor or administrator lives more than 32 km from the Melbourne GPO, the Clerk of the nearest Magistrates' Court will prepare the necessary documents. There is a filing fee of $98 to file an application through the Small Estates Office.

Wages due to the deceased may be paid directly to the dead employee's executors without probate, provided that the deceased employee's estate is less than $25,000 and the wages due do not exceed $12,500 for deaths after 25 April 1995 ($10,000 for deaths prior to that date) (s.32 A&P Act).

EXAMPLE

The husband or wife dies and the sole beneficiary is the surviving spouse.

The assets are a jointly owned matrimonial house valued at $250,000, a joint bank account with a credit balance of $8,000 and a bank account in the deceased's name only with a credit balance of $40,000.

A grant of probate will only be required to release the solely owned funds (i.e. the $40,000 bank account in the deceased spouse's sole name).

The Small Estates Branch will get the grant of probate and hand this to the executor, who will then have to complete the administration of the estate by themself.

COST

A small general service fee is charged, and the usual filing fees on application must be paid. (For more information on the Small Estates Office, see: "Small Estates / Probate Office" in Chapter 2.3 Legal Aid.)

SMALL ESTATES :: Last updated: Thu Jul 1st 2010