What Happens If Someone Dies Without a Will in Australia?

15 December 2023

Guide Wills

What happens if you die without a will? Unfortunately, the chances are that your loved ones will be left dealing with plenty of red tape and anxiety. But it can all be avoided. Backed by the Victorian Government, State Trustees has helped thousands to make a will and avoid leaving behind complications and confusion. In this article, you can expect to learn:

 

  • What happens if someone dies without a will 
  • Letters of administration and intestacy explained 
  • Who inherits if there is no will 
  • What an ‘estate’ includes

 

… and plenty more. We share our expertise on the matter and hope it encourages you to tie up loose ends for your peace of mind and your loved ones’ security and well-being.

Find out how simple and easy making a will can be.

What happens if someone dies without a will?

Dying without a will means dying intestate. Being intestate means that the laws of the state or territory they live in will decide how their estate is administered. An estate is made up of a person’s assets and liabilities.

 

A person’s assets are their property and belongings that have value, such as a house, car and bank accounts. A person’s liabilities consist of any money they may owe, such as a mortgage or a loan.

What do you do if someone dies without a will?

Priority #1 – Apply for permission to administer the estate

The estate includes all the person’s assets and liabilities. The court will then issue a grant of letters of administration. The closest next of kin can apply to be the administrator, or they can ask a solicitor or trustee company to apply for them.

 

Letters of administration gives a person or trustee company (such as State Trustees) the legal right to administer the estate of the person who has died.

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An administrator

s the person responsible for the deceased estate administration, not an executor. That said, their duties are mostly the same.

Defining your ‘estate’

Estate planning 101 first requires you to understand what falls under the definition of ‘estate’. In simple terms, it includes your net worth at any point in time. It is the sum of all of your assets, less any debts or liabilities at that time. The types of assets that may form part of your estate might include:
  • Real property

  • Vehicles

  • Personal items (e.g. jewellery, art, heirlooms and antiques etc.) and a separate document with any assets you have in a trust

  • Any stocks or bonds that you have

  • Bank accounts

Who gets what? Intestate estate distribution

In Victoria, the law follows a specific pattern regarding intestate estate hierarchy:
  1. Spouse

  2. Parents

  3. Siblings

  4. Grandparents

  5. Aunts and uncles

  6. Cousins

What happens to minor children or dependents?

Laws can differ from state to state. 

  • You die without a will in Victoria and don’t have a surviving spouse – minor children or dependents are considered next of kin and must apply to administer your estate. 
  • You die intestate but have a surviving spouse – the spouse becomes your dependent or minor’s sole Guardian.
  • You die intestate with no surviving spouse – the Supreme Court appoints a Guardian based on what is deemed in the best interests of the minor or dependent.

Don’t leave it to chance – protect your loved ones today

Life insurance and superannuation

The proceeds from your life insurance and superannuation do not automatically form part of your estate. If you are unsure of how your life insurance and superannuation benefits will be dealt with, you should speak to your policy providers and/or consult a financial advisor.

How do you apply for letters of administration?

  1. Advertise online that you are applying
  2. When you submit your application to the Probate Office, you must include:
    • The deceased person’s death certificate
    • Confirmation of the estate’s assets and liabilities and 
    • Proof that you are the closest next of kin.
  3. If the next of kin is a domestic partner, the Registrar of Probate will need proof of the relationship. 
  4. You must include an affidavit or another legal document, proving that the relationship existed.

What does an administrator do?

Some of the other tasks an administrator needs to do include:
  • Finding and contacting the beneficiaries (people who will be given something from the person’s estate), including anyone interstate or overseas. This may include genealogy searches to work out what sort of beneficiary they are under Victoria’s intestacy laws

  • Protecting the person’s assets. You need to make sure the assets are safe. This might include taking out insurance and securing the assets.

  • Providing death notifications to the Australian Tax Office, Centrelink and banks

  • Paying any outstanding bills and debts from the estate funds and arranging to have assets valued

  • Resolving disputes between beneficiaries

  • Lodging tax returns if needed

  • Claiming life insurance and superannuation

  • Dealing with any real estate that is part of the estate, including getting the property ready for sale

  • Distributing assets according to Victoria’s intestacy law.

Dying intestate can affect families financially & emotionally

It’s important to remember that dying without a will leaves more than an administrative burden on loved ones. Depending on circumstances, they could be responsible for bills. If an inheritance is challenged, they may also face potential legal costs. All of this creates anxiety and stress during what is already a difficult and upsetting time. 

Peace of mind for all – why everyone needs a Will

Having a will in place provides peace of mind that your loved ones will be cared for according to your wishes after you’re gone. It also reassures your family that they’re honouring your intentions. Avoid the turmoil – contact State Trustees and see how easy and cost-effective the process can be.

How can State Trustees Victoria help?

Where there is no will, the closest next of kin can ask State Trustees Victoria to administer the person’s estate for them or help them to carry out tasks. If you die intestate, you don’t have a say in who can benefit from your estate. This means a written and up-to-date will helps ensure that your property and possessions are distributed in accordance with your wishes.

 

State Trustees has been administering deceased estates for decades, so we’re experts in dealing with different types of estates. Our professional staff provide unbiased service and trusted, individual care. Call 1300 138 672 for obligation-free advice about how we can help you.

 

Need help with an estate where no will was left? We’re here to assist with probate, Letters of Administration, and legal support.

Useful resources

Guide

Will Writing Guide

Read more
Guide

Seniors Guide to Estate Planning

Read more
Checklist

Executor Checklist

Read more

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Original artwork ‘Four Sisters Coming Together’ by Melissa Bell 2023