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Understanding the Grant of Probate: Its Importance and Implications



The grant of probate is a critical legal document that authorizes the executor to manage and distribute the estate of a deceased person. Without this grant, the executor has no legal power to act on behalf of the deceased’s estate. This article explores the importance of obtaining a grant of probate, the process involved, common challenges faced, and a real-life example from New South Wales (NSW), Australia, where a contested probate led to significant financial losses.


What is a Grant of Probate?
A grant of probate is a legal document issued by the Supreme Court that validates a recently deceased person’s will. The document certifies that the testator (the person who made the will) has passed away and created a valid will. It also authorizes the named executor(s) to distribute the deceased’s estate in accordance with the terms of the will.

Without a grant of probate, financial institutions, land registries, and other entities may refuse to release the deceased’s assets. The grant provides the executor with the legal authority to collect assets, pay debts, and distribute the estate to the beneficiaries as outlined in the will.


A Grant of Probate might not be necessary in certain situations. These include:

  • Joint Ownership of Assets: If all the assets were owned jointly with a spouse or another party as joint tenants, a Grant of Probate may not be needed. Examples of such assets include:
    • The family home
    • An investment property
    • Jointly held bank accounts
    • Jointly held shares or other investments

  • Superannuation Benefits: If the primary asset in the deceased’s name was a superannuation benefit, and the deceased had made a Binding Death Benefit Nomination to a surviving spouse or another relevant dependant, probate may not be required.
  • Low-Value Assets: If the only assets owned by the deceased in their name alone, and located in New South Wales, have a combined value of less than $50,000.00, probate might not be necessary. However, this is a general guideline, and the specific rules and requirements of the relevant bank or investment body should be checked.


Conversely, there are circumstances where obtaining a Grant of Probate is essential, such as:

  • Sole Ownership of Real Estate: If the deceased owned any real estate in their name alone.
  • Tenants in Common: If the deceased owned a share of real estate with others as tenants in common, as opposed to joint tenants.
  • Bank Accounts Over $50,000: If the deceased held any bank accounts in their name alone, with a value exceeding $50,000.00 (noting that some financial institutions may require probate for lower amounts).
  • Sole Ownership of Company Shares: If the deceased owned any company shares in their name alone.
  • High-Value Assets: If any other assets held solely by the deceased exceed a value of approximately $50,000.00.


Additionally, a Grant of Probate may be required if there is a dispute involving the will, such as a contest over the validity of the will or who should benefit from the estate. For example, if the deceased’s only significant asset is a superannuation benefit, but there is a dispute over whether it should be passed to a surviving spouse or to the deceased’s children, probate may be necessary to resolve the issue.


Steps to Apply for a Grant of Probate

  1. Determine the Necessity of Probate: Not all estates require a Grant of Probate. For instance, if all assets are jointly owned or if the estate's value is below a certain threshold, probate may not be necessary. There are specific instances where it is possible to deal with the assets of a deceased estate without the need to obtain a Grant of Probate. Examples include when assets are jointly owned or of a low value.
  2. Gathering Documentation: Executors must collect the original will, death certificate, and an inventory of assets and liabilities. The application must also provide a summary of the deceased’s assets, liabilities, any other named executors, and a list of the beneficiaries to the will.
  3. Lodging the Application: The application must be submitted to the Supreme Court of NSW, often requiring a notice of intended application to be published online. This notice sets out the executor’s intention to apply, the identity of the deceased, the date of death, and the date of the will. The court reviews these documents to ensure the will is valid and the executor is suitable to carry out the estate administration. The application cannot be lodged until at least 14 days have passed since the publication of the notice.
  4. Receiving the Grant: Once all documentation is reviewed, the court issues the Grant of Probate, allowing the executor to proceed with estate administration. The Supreme Court may require further evidence or clarifications before issuing the grant. Once satisfied, the court issues the grant of probate, giving the executor the official capacity to manage the estate.


  1. Disputed Wills: Challenges to the validity of a will can significantly delay the probate process. Issues such as undue influence, forgery, or questions about the deceased’s mental capacity when the will was made are common grounds for disputes. These disputes can delay the issuance of probate and may require legal resolution.
  2. Incomplete Documentation: The court requires accurate and complete documentation for the probate application. Missing or incorrect documents can lead to delays or rejection of the probate application. This includes any affidavits, inventories of property, and other supporting documents required by the court.
  3. Complex Estates: In cases where the estate is complex, involving multiple properties, businesses, or international assets, the probate process can become lengthy and complicated, requiring additional legal and financial expertise.


  1. When is Probate Required? Probate is generally required for estates involving significant assets, such as real estate or large bank accounts. However, it may not be necessary if the deceased’s assets were jointly owned or if the estate's value is below a specific threshold, typically around $50,000.
  2. Situations Where Probate May Not Be Necessary: If the deceased held assets jointly, such as a family home, investment property, or jointly held bank accounts, probate might not be required. Additionally, if the estate’s assets are of low value or if the primary asset is a superannuation benefit with a binding death benefit nomination, probate may not be necessary.
  3. Protection Offered by Probate: Obtaining a Grant of Probate offers legal protection to the executor, shielding them from personal liability in the event of disputes. An executor who administers the estate properly in good faith and without negligence will be protected from personal liability even if the grant of probate is later revoked for some reason.


Understanding the Role and Significance of Probate Caveats in NSW

A probate caveat is a crucial legal instrument that can significantly impact the administration of an estate. When disputes arise regarding the validity of a will or the authority of an executor, a probate caveat serves as a protective measure, halting the probate process until the dispute is resolved. This article delves into the intricacies of probate caveats, their legal implications, and real-world applications within the context of New South Wales (NSW), Australia.


What is a Probate Caveat?

A probate caveat is a formal legal notice filed with the Supreme Court, indicating that there is an objection to the issuance of a grant of probate. This filing effectively prevents the executor from obtaining the grant of probate until the caveat is resolved or withdrawn. The caveat is designed to protect the interests of individuals who believe that the will is invalid or that the proposed executor is not fit to administer the estate.


In NSW, the rules governing probate caveats are outlined under Division 10 of the Supreme Court Rules 1970. These rules allow any person with an interest in the estate to file a caveat against the grant of probate. The person who files the caveat is known as the "caveator."


Grounds for Filing a Probate Caveat

For a probate caveat to be successful, it must challenge the validity of the will or raise concerns about the suitability of the executor. Common grounds for filing a caveat include:

  • Testamentary Capacity: The caveator may argue that the deceased lacked the mental capacity to make a valid will at the time it was executed.
  • Undue Influence or Duress: The will may have been created under undue pressure, making it invalid.
  • Forgery or Fraud: Allegations that the will was forged or that fraudulent behavior was involved in its creation.
  • Non-Compliance with Legal Requirements: The will may not meet the formal legal requirements, such as proper signing and witnessing.


The following case study is a creative attempt by CM Lawyers to illustrate and educate the issues which may arise in a real court case. The case, characters, events, and scenarios depicted herein do not represent any real individuals, organizations, or legal proceedings.


A notable case that highlights the significance of probate caveats is Vea v Katalinic [2020] NSWSC 805. In this case, the caveator challenged the validity of the will on the grounds that the deceased lacked testamentary capacity. The court found that the circumstances surrounding the will warranted an investigation, and as a result, the probate process was halted until the matter was thoroughly examined.


This case illustrates how a probate caveat can effectively prevent the distribution of an estate when there are legitimate concerns about the will's validity.


To file a probate caveat in NSW, the caveator must submit a formal notice to the Supreme Court. This notice must outline the grounds for the caveat and demonstrate the caveator's interest in the estate. Once filed, the probate process is suspended, and the executor is prevented from administering the estate until the caveat is resolved.


If the court finds the grounds for the caveat to be valid, the will may be adjusted, or the probate may be granted in solemn form, which involves a formal court proceeding before a judge. This process opens the matter to litigation, requiring the caveator to file a statement of claim to initiate the proceedings.


If a probate caveat is successful, the court may determine that the will is invalid. In such cases, the court may direct adjustments to the will or authorize the probate in solemn form. This outcome can lead to significant delays in the administration of the estate and may require extensive litigation to resolve.


On the other hand, if a caveat is filed without sufficient grounds or is deemed frivolous, the caveator may be liable for costs associated with the proceedings. Therefore, it is crucial to seek expert legal advice before filing a probate caveat to avoid potential financial consequences.


Conclusion

A probate caveat is a powerful legal tool that serves as a safeguard against the improper administration of an estate. It allows individuals with legitimate concerns about a will's validity or the executor's suitability to challenge the probate process and ensure that the deceased's wishes are honored. However, the process of filing a caveat is complex and requires careful consideration of the legal grounds and potential outcomes. Consulting with a specialist in probate law is essential to navigate this intricate area of estate administration.


Executors who administer an estate without obtaining a formal Grant of Probate may face several potential liability issues, including:

  • Challenges to the Will's Validity: The validity of the will being administered informally may be challenged at any stage by individuals who seek to have the estate distributed according to an earlier will or, if no earlier will exists, according to intestacy rules.
  • Discovery of a Later Will: If another will is discovered during or after the administration, and this will post-dates the one being administered informally, it could appoint different executors and beneficiaries, complicating the administration process.
  • Litigation Costs: The informal executor may face significant costs and uncertainty if they need to commence or defend litigation brought by or against the estate.
  • Insurance Claims: The informal executor may be unable to claim on an insurance policy taken out over estate assets (e.g., if a house in the estate is damaged by fire) because the insurer may argue that the executor lacks an insurable interest due to acting informally.
  • Executor-Beneficiary Conflicts: Conflicts between the executor and beneficiaries may lead to increased scrutiny of the executor’s actions, including whether they can indemnify or reimburse themselves for costs incurred on behalf of the estate.
  • Joint Executor Issues: If the will appoints multiple executors who are unable to work together, the law in Queensland requires them to act jointly. Unilateral actions by one executor may cast doubt on the validity of those actions.


An executor who obtains a Grant of Probate in good faith and without negligence, and who administers the estate properly according to that grant, is protected from personal liability. This protection remains even if the Grant of Probate is later revoked for some reason.



Case Background
In 2021, the NSW Supreme Court handled the estate of Richard, a wealthy real estate investor who passed away leaving a will that favored his second wife, Lisa, over his children from his first marriage. The will appointed Lisa as the sole executor and primary beneficiary, with Richard’s children receiving significantly smaller portions of the estate.


What Happened
Upon Richard’s death, his children challenged the validity of the will, alleging that Lisa had unduly influenced Richard during his later years when he was suffering from a degenerative illness. The children argued that Richard lacked the mental capacity to understand the implications of the new will, which heavily favored Lisa.


Participant Behavior
The dispute quickly escalated as both parties engaged top-tier legal teams to represent their interests. The children’s lawyers sought to invalidate the will, while Lisa’s legal team argued that the will accurately reflected Richard’s wishes. The legal battle involved multiple hearings, expert testimonies, and a detailed examination of Richard’s medical history.


Legal Process
The court case dragged on for over two years, with each side presenting extensive evidence. Medical experts testified on Richard’s mental state, while witnesses were called to discuss his relationship with Lisa and the circumstances under which the will was made. The court ultimately upheld the will, finding that while Richard’s health was declining, there was insufficient evidence to prove that Lisa had unduly influenced him.


Financial Consequences
The prolonged legal battle had severe financial implications for the estate. Legal fees exceeded $1 million, which significantly reduced the estate’s value. Additionally, the ongoing dispute delayed the distribution of assets, causing further financial strain on the beneficiaries. In the end, the estate’s total value was reduced by nearly 25%, with much of the loss attributable to legal costs and prolonged asset management expenses during the dispute.


  1. Clarity in Wills: Executors should ensure that wills are clear and uncontested to prevent disputes. A well-drafted will with clear instructions and witnesses can prevent disputes and delays in the probate process.
  2. Professional Legal Assistance: Legal advice is crucial in navigating the complexities of probate, especially in cases involving contested wills or complex estates. Executors should consider legal advice to navigate the complexities of probate.
  3. Accurate Documentation: Complete and accurate documentation is essential for a smooth probate process. Thorough and accurate documentation is necessary to avoid delays and complications during the probate application process.



Prevalence of Probate Disputes: A 2022 study by the Australian Institute of Family Studies found that approximately 20% of probate cases in NSW involve disputes over the validity of wills or the distribution of assets.


Impact on Estate Value: The same study revealed that estates involved in contested probate cases experienced an average reduction in value of 15-30%, primarily due to legal fees and prolonged administration costs.


Legal Costs: According to a 2023 report by the Law Society of NSW, contested probate cases can incur legal fees ranging from $100,000 to over $1 million, depending on the complexity of the case and the duration of the dispute.


Delay in Asset Distribution: Contested probate cases often delay the distribution of assets by an average of 12-24 months, causing financial hardship for beneficiaries who rely on their inheritance.


  • Essential Resources: Government and Non-Profit Organizations
  • NSW Government – Applying for Probate
    URL: https://www.nsw.gov.au/law-and-justice/wills-probate-and-inheritance/probate
  • Legal Aid NSW – Contesting a Will
    URL: https://www.legalaid.nsw.gov.au/publications/factsheets-and-resources/contesting-a-will
  • NSW Supreme Court – Probate Registry
    URL: https://www.supremecourt.justice.nsw.gov.au/Pages/sco2_probate/sco2_probate.aspx