Cost of Probate and Letters of Administration

When someone dies, their property does not pass automatically to the beneficiaries. Someone has to be properly appointed to administer the estate. Who is appointed, and by which route, turns on one basic question: is there a will.

Probate compared with letters of administration

• Probate is applied for where there is a valid will. The executor named in the will applies to the court to confirm their authority. This is handled under the Probate and Administration Act 1959.
• Letters of administration are applied for where there is no will. An eligible beneficiary applies to be appointed as administrator. Distribution then follows the law applicable to the deceased.

What makes up the cost

• Legal fees. Reviewing the will or determining the entitled beneficiaries, preparing affidavits and supporting documents, filing, and dealing with any court queries.
• Court filing fees. Charged by the court according to the type of application.
• Searches and verification. Title searches, and confirming the assets and liabilities of the estate.
• Surety bond. In some letters of administration applications the court requires sureties or a bond. This can add cost and complication, particularly where suitable sureties are hard to find.
• Registration after the grant. Once the grant of probate or letters of administration is obtained, the transfer to the beneficiaries still has to be registered at the land office.

Why letters of administration are usually more involved

With a will, the document already states who is responsible and how the estate is to be divided. Without one, both have to be established. Beneficiaries have to be identified, their entitlement confirmed, and their consent obtained to the appointment of an administrator. Where there are many beneficiaries or they disagree, cost and time both rise.

When the small estate route is more suitable

If the estate meets the small estate conditions under the Small Estates (Distribution) Act 1955, that route is usually cheaper and faster because it is handled administratively. Your lawyer should assess eligibility for it before filing in court.

Costs after the grant is obtained

As with a small estate, the grant itself does not change the name on the title. Once the grant is obtained, the executor or administrator has to deal with the transfer and register it. If the property is later sold, that sale carries the usual conveyancing costs and real property gains tax considerations.

What slows things down and adds cost

• The original will cannot be found, only a copy
• The named executor has died or declines to act
• Assets in several states or overseas
• Unsettled estate debts that have to be identified first
• Incomplete death certificates or beneficiary identity documents

Frequently asked questions