A Last Will & Testament nominates an executor to take responsibility of a person's estate when they die. However, if a person died without making a valid Will, also known as 'dying intestate', their next of kin usually assumes responsibility for the estate. To avoid dying intestate, make or update your Will.
The executor of a will is in charge of making sure the wishes of the deceased are carried out, as well as handling the final affairs of the estate.
How much are executor fees? Executors can be paid a flat fee, an hourly rate, or a percentage based on the gross value of the estate. When the fees are based on the estate value, they are usually tiered — like 4% of the first $100,000 of the estate, 3% of the next $100,000, and so on.
In Australia, the term 'Next of Kin' means a person's spouse, domestic partner or closest living blood relative who is over 18 years of age. Whilst there is no formal legal recognition or legal rights of Next of Kin, they play a very important role if a person dies without a valid Will.
Does a next of kin have legal rights and responsibilities in the event of my death? No. If you have made a Will, your executor(s) will be responsible for arranging your affairs according to your wishes. Your executor may appoint another person to act on their behalf.
Some banks or building societies will allow the executors or administrators to access the account of someone who has died without a Grant of Probate.
In the absence of a surviving spouse, the person who is next of kin inherits the estate. The line of inheritance begins with direct offspring, starting with their children, then their grandchildren, followed by any great-grandchildren, and so on.
If there is no surviving partner, the children of a person who has died without leaving a will inherit the whole estate. This applies however much the estate is worth. If there are two or more children, the estate will be divided equally between them.
It's important to note from the start that, contrary to popular opinion, being next of kin does not legally entitle you to make health or financial decisions on behalf of your relative. In many instances, in order to represent your loved one you will need a Lasting Power of Attorney in place.
What are the powers of the executor of a Will? Executors carry a heavy burden when someone dies. Not only are they required to manage the estate, but must also plan the funeral, cancel credit cards, gather documentation, and hire lawyers and financial planners who can help them crawl out of the administrative gutter.
Most people ask a family member or close friend. You can also appoint a lawyer, a notary public, or a private trust company as executor. The Public Guardian and Trustee may agree to be appointed executor in some circumstances. You can appoint two or more people to act as your executors.
Wait Six Months (or sometimes longer)
By law the Executor has to hold onto estate assets for six months from the date Probate is granted, and cannot pay out any money to the beneficiaries before this time is up.
Can an executor of a will take everything? No. An executor of a will cannot take everything unless they are the will's sole beneficiary. An executor is a fiduciary to the estate beneficiaries, not necessarily a beneficiary.
No. The executors of a will have a duty to act in the best interests of the estate and the people named in it. So, an executor can't change the will without the permission of the beneficiaries. It is technically possible to make changes to a will by creating a deed of variation.
The executor role requires calling in, collecting and distributing the deceased's estate in accordance with their will. If the terms of the will aren't followed, action can be taken against problem executors.
Next of kin after a death
Without any named executors, a next of kin would be responsible for registering the death, organising the funeral and applying for a Grant of Administration in order to be able to administer the estate.
A next of kin can be a spouse, child or relation. It should however be noted that a next of kin is not necessarily the person intended as direct beneficiary of the deceased's estate or entitlement.
There is a hierarchy which determines who is deemed closest to you as “next of kin.” Your spouse or civil partner comes first, then your children, then your parents, siblings, grandparents in that order.
The term usually means your nearest blood relative. In the case of a married couple or a civil partnership it usually means their husband or wife. Next of kin is a title that can be given, by you, to anyone from your partner to blood relatives and even friends.
A person's next of kin is usually his or her closest living blood relative or relatives.
A person's next of kin is typically their spouse or closest living relative. The following hierarchy determines who is the most senior next of kin (in order): spouse or domestic partner; adult son or daughter (eldest surviving takes seniority);
Bottom line. If someone has a named beneficiary on their account, that person can withdraw money after the account owner dies. If not, the bank account is closed and its balance will be divided up according to the deceased's will or the intestate succession laws of the state.
So, after the account holder's death, the nominee can intimate the bank about the same, present the relevant documents (ID proof of the nominee and death certificate of the account holder), withdraw the funds and close the account. However, if there is no nominee, withdrawal might become hassling.
If one dies, all the money will go to the surviving partner without the need for probate or letters of administration. The bank may need the see the death certificate in order to transfer the money to the other joint owner.