Friday 4 May 2012

Probate and Administration of Estates in The Bahamas

When a person dies, someone has to deal with their affairs. This is called 'administering the estate'.

If the person who has died leaves a will

If the person who has died leaves a will, it will usually name one or more people to act as the executors of the will - that is, to administer their estate in accordance with the law.

If you are named as an executor of a will you may need to apply for a grant of probate.

A grant of probate is an official document which the executors may need to administer the estate. It is issued by a section of the court known as the probate registry.

If there is no will

If there is no will (known as dying intestate) the process is more complicated. An application for a grant of letters of administration (an official document, issued by the court, which allows administrators to administer the estate) will need to be made.

The person to whom letters of administration is granted is known as the administrator. The administrator is the person who has the legal right to deal with the affairs of the person who has died, and is determined by a set order of priority. The administrator will usually be a close relative of the person who has died, if there is one. There may be more than one person who has an equal right to do this. Your attorney will be able to provide you with information on the set order of priority.

Some more legal terms you may come across

Personal representatives (PRs)
This means executors or administrators. If there is more than one personal representative they must work together to decide matters between them. Disagreements between personal representatives can cause expensive delays. 

Grants of representation
This includes grants of probate (when there is a will) and grants of letters of administration (usually when there is no will) and resealing of a foreign grant. Often people just refer to probate even if there is no will. 
  
How to get a grant
You can ask a Bahamian estate attorney to apply for the grant of representation on your behalf.

You can also apply for a grant of representation  yourself, however, it is recommended that you use a Bahamian estate attorney (except maybe in circumstances where the value of the estate is less than $10,000.00).

    Responsibilities of personal representatives

    Personal representatives are responsible for making sure that the estate is administered correctly. If there is a will, the personal representative must make sure that the wishes of the person who has died, as set out in their will, are followed. If there is no will, you must follow the rules of intestacy (set out in the Inheritance Act). You should ask your Bahamian estate attorney to explain these.

    Inheritance tax

    There is no inheritance tax in The Bahamas.

    Costs

    Charges can vary between attorneys and depend on what is involved in administering the estate as well as the value of the estate. It is often not possible to know immediately what may be involved and how much advice and help is needed.

    Your Bahamian estate attorney should tell you what the costs are likely to be before carrying out any work. You can compare costs by contacting more than one attorney. Remember that the cost of dealing with the estate is usually paid from the estate.

    However, cost is not the only consideration. It is equally important to find a Bahamian estate attorney who is approachable and sympathetic, and whose advice you understand. 

    This post is for your information only and nothing contained in this post is intended to constitute a legal opinion. If you require any detailed advice you should contact an attorney.  Alternatively you may e-mail the creator of this blog and he may assist you or refer you to someone who can assist you.  If you require more detailed advice you can e-mail a Bahamian probate and estate lawyer by clicking here.

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