What you need to know about probate and why it is important to you
Losing a loved one is never easy. And as you navigate through the grieving process, there's another important task you can't ignore—sorting out their financial affairs according to their final wishes. That's where probate is important. Think of it as a way to make sure your love one's final wishes are respected. So, let's get this sorted, shall we?
What is probate?
When someone in your life bites the dust and they've left behind a will, probate is the fancy legal process that makes sure all their wishes are followed. It includes taking that will to the Supreme Court and getting a "grant of probate", which basically means the will is good to go in the eyes of the law. Long story short, probate is just the way we make sure the departed get what they wanted and deserve.
When does it become a big deal?
Probate becomes a big deal when your loved one kicks the bucket and leaves behind some stuff that needs to be distributed. Picture this: they had a bank account all to themselves, and now the bank wants some official paperwork, aka a grant of probate, before they hand over the funds. And if your dear departed had some shares, the company or trading platform holding those shares might also demand a grant of probate before they'll cough them up.
And if your loved one has passed away and they owned property that now needs to be transferred to someone else, you'll likely need to go through a process called a grant of probate. And if for some reason their will is contested, probate can also come in handy.
Curious about the probate process?
It can actually vary from state to state in Australia, but one thing is for sure - it can be helpful to have a lawyer guide you through it.
Generally, you'll need to gather a few important documents:
The current, up-to-date and original will
Original death certificate from your state registry
Filled probate application
Proof of income or capital allocated by the will maker
Lodgement fee
What about life insurance? How does that fit in?
Now, if your loved one was smart enough to name you as a beneficiary in their existing life insurance policy, things can get a whole lot easier for you. When the time comes, you won't have to deal with the whole probate shebang. No need to wait for an executor or jump through hoops. You should be easily able to access financial support and get some much-needed financial help to handle those expenses.
And hey, if you're not sure about your life insurance policy or how to nominate a beneficiary, give us a buzz. We're here to chat and sort things out for you.