Estate Matters and Distribution of Assets — Part 3
Welcome back to the third installment of our four-part series!
In this section, we will share more about applying for Letters of Administration, helping you understand what it is and how it works.
In Singapore, when someone passes on and does not have a will, the next-of-kin may apply for a Letters of Administration from the Singapore courts in accordance with Section 18 of the Probate and Administration Act. This legal document gives the administrator the authority to manage the deceased’s estate, pay off any debts, and distribute the assets as outlined under the Intestate Succession Act 1967.
Which Court Handles the Application?
The application process depends on the value of the deceased’s estate:
- Estates valued up to SGD 5 million are heard by the Family Courts.
- Estates valued over SGD 5 million are heard by the Family Division of the High Court.
Documents Required for the Application
Prior to applying for a Letters of Administration, renunciations must be obtained from all beneficiaries with prior rights. The Intestate Succession Act 1967 specifies seven classes of people who are eligible to apply for this grant, in declining order of priority:
- Spouse;
- Children;
- Parents;
- Siblings;
- Nephews and nieces;
- Grandparents; and
- Aunts and uncles
For example, if a Parent is to apply for a Letters of Administration, renunciations must be obtained from the surviving spouse and children.
Once the renunciation(s) are obtained the applicant / administrator must file several documents through the Singapore Court’s eLitigation system:
- Originating Summons
- Statement
- Renunciations of Beneficiaries with Prior Rights (if necessary)
- Death Certificate
- Schedule of Assets
- Supporting Affidavit
- Administration Oath
- Administration Bond (if directed)
- Summons for Dispensation of Sureties (if sureties are required but not found)
- Consent of Dispensation of Sureties (if sureties are required but not found)
Timeframe for Obtaining the Letters of Administration
The process typically takes about 3 months from the time of application. However, this timeline can vary depending on the complexity of the case and the completeness of submitted documents.
Why the Letters of Administration is Important
The Letters of Administration ensures that the administrator can legally manage the estate according to the will. Without it, financial institutions and other asset holders will not release the deceased’s assets, and the estate cannot be distributed as directed under the Intestate Succession Act 1967. Additionally, a Letters of Administration protects the administrator from future legal challenges concerning the administration of the estate.
Distribution of Assets
Once the Letters of Administration is issued, assets are distributed in accordance with the Section 7 of the Intestate Succession Act 1967
*Above scenarios are non-exhaustive, please contact LP Law for more information.
Common Challenges in the Letters of Administration Process
Administrators may face challenges, such as when there are:
- Missing documents or where there is difficulty in obtaining renunciations.
- Disputes among beneficiaries about the distribution of assets.
- The need for an administration bond or sureties when required by the court, which can delay the process if not promptly addressed.
Obtaining a Letters of Administration is a crucial step in managing a deceased person’s assets. Though it may seem daunting, having the right information and documentation can streamline the process.
Our experienced legal professionals are here to guide you through every step and concern. Reach out to us if you are involved in a probate process or need more information on how to navigate it.
