Estate Beneficiary NZ

Administering Estates in New Zealand - A Beneficiary’s Guide

Beneficiaries are often left wondering how the administration of an estate is being managed. Estate lawyers predominantly advise the executives or administrators of the state. Therefore unless the administrators or executors are transparent and forthcoming with information often the beneficiaries are left wondering how the administration of the estate is progressing. If there are any dynamics or challenges on the estate then information is likely to be list forthcoming from the executors and administrators.

Beneficiaries have a right to certain information such as the quantum of the assets end certain documentation, however the executors and trustees generally do not have to provide reasons for their decisions (unless compelled to by the courts).

The following are the summary of steps in the administration of a standard estate:

Step 1- Locating the Will

Locating the will Is the initial step. If the will or able cannot be located then the executor or administrator must then advertise and certain legal media to see if any law firm holds a will for the deceased.

Step 2 - Applying for Probate or Letters of Administration

The executors or administrators will apply for a grant of probate or letters of administration to the High Court. This process generally takes between 4 to 6 weeks if there are no obstacles (for example an executor is based overseas or there is a dispute between administrators or executors). Cost of Lee grant of administration is usually start at about $800 plus GST and can range anywhere up to approximately $5000 plus GST depending on the complexity of the will, dynamics between the executors and or administrators, and number of additional documents required to obtain the grant.

Step 3 - Uplifting Estate Funds/Sale of Assets

Once the grant of probate or letters of administration have been obtained then the assets of the estate will either be sold (Shares, Real Estate) or funds uplifted from banks and financial institutions such as Term Deposits, Bank Account funds and Kiwi saver. If the will covers a deceased persons worldwide assets then depending on where those assets are held it may require a reseal of the grant in another country or jurisdiction. Once fans have been uplifted then the administrators or executives pay the dates of the estate and reimburse funds to the executor or administrator for example for the High Court probate fee.

Step 4 - Distribution

As long as there are no claims on the estate by interested parties regarding Relationship Property, the Family Protection Act or Testamentary Promises Act, distribution can occur. Generally, executors or administrators are advised to wait for 6 months prior to distributing an estate because of the risk of creditors or claims on the estate as described above.

Gifts are distributed first, unless there is a dispute over who gets what gift. For example, jewelry or heirlooms my be left to children or grandchildren without setting out who gets what specifically. Different methods can be used to share gifts like “Turn about” and valuations. Estate lawyers can assist the executives or administrators to resolve any impasse.

The residue or remaining assets of the estate are distributed in accordance with the will or in accordance with the Administration Act 1969.

In conclusion, the majority of the estates can be administered and distributed manner over a matter of months. If there are claims on the estate these can hold up distribution of the estate for years. If you require any assistance please phone me – Richard Watling - 027 700 1622 for a confidential discussion.