Attorney General Anil Nandlall introduced the Deceased Persons Estate Administration Amendment Bill 2024 during the last sitting of the National Assembly and ahead of any debate on the Bill, the Minister of Legal Affairs has sought to clarify the nature and purpose of the changes to the law.
In a detailed explanation during his Tuesday night ‘Issues in the News’ commentary, Nandlall outlined the implications of the proposed changes.
Under current law, when an individual passes away, their assets are placed into an estate. The management and distribution of this estate typically require a legal process. If the deceased left a will, an executor must apply for probate to manage the estate according to the will’s directives.
If no will exists, a person must apply for letters of administration to manage and distribute the estate’s assets.
Nandlall recalled too that previously, only legal spouses had the authority to apply for letters of administration. Amendments in 2012 to the Civil Law (Rights of Persons in Common Law Union) Act, extended this right to common-law spouses, acknowledging the role they play in the lives of the deceased.
Additionally, if no spouse is available, a child or a sibling can apply for letters of administration. Notable changes also addressed the financial burden associated with estate administration.
Historically, small estates often left limited funds that were insufficient to cover the costs of probate or administration. For example, estates with $1,000 or less were subject to the same administrative processes as larger estates, which could be expensive.
To address this issue, two years ago, legislation was amended to increase the threshold to $750,000. This allowed beneficiaries to access funds of up to $750,000 without needing letters of administration.
However, this provision was limited to bank accounts, leaving other assets like credit union funds or final salaries unaffected.
The latest amendment seeks to rectify this by expanding the $750,000 threshold to include all types of holdings, not just bank accounts. This change will enable beneficiaries to access funds from various sources, such as credit unions or unpaid wages, without undergoing the lengthy and often costly probate process.
Nandlall emphasised that this update is intended to further alleviate financial strains on families during difficult times, ensuring that smaller estates can be managed more efficiently and without unnecessary bureaucratic delays.
The Deceased Persons Estate Administration Amendment Bill 2024 aims to streamline estate management, reduce administrative costs, and provide equitable access to funds for beneficiaries.
