Several provisions in the Act can trap the unwary personal representative or adviser.
1. Vesting of estate in Chief Justice before grant (s 12). Where a person dies intestate, the real and personal estate vests in the Chief Justice (or senior puisne judge) until administration is granted. This is an automatic vesting that can create confusion about who holds legal title during the gap between death and grant. It applies only to intestacy, not where there is an executor who proves.
2. Requirement for two individuals or a trust corporation if minority or life interest (s 14). If any beneficiary is an infant or a life interest arises, administration must be granted either to a trust corporation (with or without an individual) or to not less than two individuals. A single individual (other than a trust corporation) cannot be administrator in such cases. Furthermore, if there is only one personal representative not being a trust corporation, the Court may appoint additional representatives during the minority or life interest (s 14(2)).
3. Executor cannot act while administration is in force (s 18). Where administration has been granted in respect of any real or personal estate, no person has power to bring any action or otherwise act as executor until the grant has been recalled or revoked. This prevents a later proving executor from acting while an administration grant is still current.
4. Time limit for tort claims against the estate (s 27(5)). Proceedings in tort against the estate are not maintainable unless they were pending at death, or the cause of action arose not earlier than 12 months before death and proceedings are taken not later than six months from the grant of probate or administration (or such extended time as a judge allows). This short limitation period is often missed; claims must be brought quickly after the grant.
5. Damages limitations for death-caused actions (s 27(3)(c)). Where the death is caused by the act or omission giving rise to the cause of action, damages are calculated without reference to loss or gain consequent on death, do not include damages for pain and suffering or loss of expectation of life (except for dust-related conditions under s 27(3A)), and disregard future probable earnings.
6. Charges on property primarily payable out of the charged property (s 35). Unless the deceased signified a contrary intention, any mortgage, equitable charge or lien on property is primarily payable out of that property as between persons claiming through the deceased. A general direction to pay debts out of the estate does not constitute a contrary intention. This can surprise beneficiaries who receive property subject to an undischarged mortgage.
7. Assents and conveyances - purchaser protection but not absolute (s 36). An assent or conveyance to a purchaser for money or money’s worth is not invalidated by notice that all debts have been discharged (s 36(6)). However, in favour of a non-purchaser, the assent does not prejudice the right to follow the property (s 38). The statutory form of assent in Schedule IV must be used for land not under the Torrens system; for Torrens land the prescribed form under the Land Titles Act applies.
8. Appropriation requires consents (s 40). The power to appropriate estate property in satisfaction of a legacy or share is subject to consents from the person absolutely entitled (if in possession) or the trustee or income beneficiary (for settled interests). Consents are not required for persons not yet in existence, unascertained, or, in some cases, mentally incapacitated persons if the investment is authorised. An appropriation must not prejudicially affect a specific devise or bequest (s 40(1)(a)). If consents are not obtained, the appropriation may be challenged.
9. Executor’s year - not a free pass (s 43). While a personal representative is not bound to distribute before one year, this does not prevent earlier distribution if safe. Delaying beyond one year without justification may expose the representative to claims for interest (s 64). The court may allow postponement of realisation or carrying on the business, but only on application and with a direction.
10. Protection under Part VII requires strict compliance with advertising requirements (ss 54-56). To obtain a release after distribution, the personal representative must advertise for claims in the Gazette, in newspapers in Hobart and Launceston, and if necessary, in other States, New Zealand, or London, depending on where claimants may reside. The day specified must be within the prescribed number of months after publication. The advertising requirements also apply to further assets that come to hand later (s 61). Failure to advertise properly means the release does not protect the representative against claimants who were not notified, including residents of other States or New Zealand if not advertised there.
11. Filing of accounts is mandatory after advertising (s 56). After the claim day, the personal representative must file an account of all assets, payments, and distribution. Failure to file may prevent the release and may lead to court orders.
12. Insolvent estates - bankruptcy rules apply (Schedule II Part I). If the estate is insolvent, the rules of bankruptcy as in force at the death govern priorities among creditors, after funeral, testamentary and administration expenses. This is a different regime from the solvent estate order, and personal representatives must be alert to potential preferences and the need to administer impartially.
13. Repeal of Part V - intestacy rules now separate. The Act no longer contains the distribution rules for intestacy; those are in the Intestacy Act 2010. A practitioner referring to the Administration and Probate Act for intestacy entitlements will be misled if they rely on the repealed Part V.
14. Chain of representation can be broken (s 10). The chain is broken by an intestacy, failure to appoint an executor, or failure to obtain probate. A broken chain means the last executor does not automatically represent the earlier testator; separate representation may be needed. However, beneficiaries may appoint a trust corporation to repair the chain (s 10(3A)). The chain is not broken by a temporary grant of administration if probate is later granted.