It can be tough when a loved one passes away, and while you’re busy grieving, you also need to think about settling their finances in line with their final wishes. This is where probate comes in and is an important consideration.
What is probate? Probate is the legal process that ensures that all the instructions set out in a will can be followed when you lose a loved one. This process involves registering the will in the Supreme Court, after which you get a ‘grant of probate’. This means that the will is officially considered to be legally valid.
When does it come in handy? Probate may come into effect when your loved one passes away, leaving behind some assets that need to be distributed. For example, there may be money in a bank account and your loved one was the sole account holder. In this case, the financial institution may ask for a grant of probate before they will release funds. If your loved one held shares, the company or trading platform with whom the shares were held may require a grant of probate before they will release the shares.
A grant of probate is also usually required when there is property previously held by your loved one that will now need to be transferred to someone else. Probate also comes in handy if for some reason, your loved one’s will is contested.
What’s involved in the probate process? The probate process is different for each state in Australia, and often people seek out the help of a lawyer. In general, you will need to provide the following:
The current, up-to-date and original will
Original death certificate from your state registry
Filled probate application
Proof of income or capital allocated by the will maker
Lodgement fee
How does Life Insurance come into the picture? If your loved one has named you as a beneficiary in their existing Life Insurance policy, you should be easily able to access financial support when the time comes without going through probate. Any lump sum Life Insurance payout will be paid directly to you. This way, you can avoid the lengthy process of going through an executor, and you get timely financial help to manage expenses. If you need to discuss your Life Insurance policy or are unsure about how to nominate a beneficiary, we’re here to have a chat at our Oran Park or Norwest office, alternatively we are available for zoom sessions if required.
If you require assistance with your Estate Planning needs including information on how to obtain a probate, please don’t hesitate to contact our office as we service the Macarthur, Greater Sydney and interstate clients where needed. You can call our office on 02 9188 1547 or email admin@rpwealthmanagement.com.au
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The information in this website and the links has been prepared for general information purposes only and does not take into account your personal objectives, financial situation or needs. It is not intended to provide commercial, financial, investment, accounting, tax or legal advice. You should, before you make any decision regarding any information, strategies, or products mentioned on this website, consult a professional financial advisor or seek assistance to consider whether it is suitable and appropriate for you and your personal needs and circumstances.
Principal Financial Planner at RP Wealth Management | Financial Planning l SMSF I Insurance l Property Advisory. Our purpose is to provide our clients with sound advice and direction to assist with their financial affairs and help them make the best choices in achieving what is important to them.
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