The sad truth of what occurs if you die without a Will – Part 2 of 3
After reading part 1 of this article you may be wondering how an intestate Will is dealt with.
Intestate matters can be complicated and a suitable administrator must be appointed by the Supreme Court of NSW. When you have a Will prepared you appoint an executor which means “a person or institution appointed by a testator to carry out the terms of your Will” , however, when you die intestate the administrator of your estate may not necessarily be the person you would have otherwise chosen. The administrator’s duties include but is not limited to:
- Arranging your funeral;
- Paying any debts or taxes;
- Collecting Assets; and
- Distributing Assets once liabilities have been paid.
A family tree must be established with evidence of the same which can be a very complicated, time-consuming task depending on who the next of kin is.
If your next of kin is a minor or incapable person an administration bond may be required which is a guarantee by a third party (often an insurance company) to the same value of the estate being administered.
When NSW Trustee & Guardian act as an administrator of an intestate person the law exempts them from having to obtain an administration bond.
This is why it is important to appoint a professional to assist you with planning your Estate so you don’t die intestate. This way your wishes will be met and you won’t leave the burden on your loved ones of having to prove what your wishes were. For more information see part 3 of this article chain >> The sad truth of what occurs if you die without a Will – Part 3 of 3