Move allows beneficiaries to receive entitlements in a timely manner

Durrant Pate/ Contributor

The Government has increased the limit to J$1.5 million for which the Administrator-General’s (AG) Department will administer the estate of persons, who die without making a will, commonly referred to as intestate.

The previous limit was J$100,000 in which the AG Department is empowered to administer estates consisting solely of personal property not exceeding $100,000 without the need for a Grant of Administration from the Courts. 

Where an individual dies intestate, leaving only personal property, and the value of these assets amounted to more than $100,000 before anyone could benefit from this estate, a Grant of Administration would have been required to access these assets but this limit has been increased to $1.5 million,

This increase became effective on August 29, 2024 with the Gazetting of the Administrator-General’s (Maximum Value of Small Estates) (Amendment) Order 2024. With this increase, the AG will be empowered to administer estates consisting of personal value not exceeding $1.5 million without obtaining a Grant of Administration. 

Justice Minister, Delroy Chuck says, “The decision to increase the limit to $1.5 million is a significant step that will allow beneficiaries to receive their entitlements in a timely manner. This change will not only facilitate better access to inherited assets for beneficiaries but also streamline the administration process and reduce the burden on the courts.”

Benefits of the move

The Justice Minister in a statement to parliament on Tuesday, highlighted some of the benefits of the increase saying it will lead to a reduction in the number of cases in which the AG is required to issue an Instrument of Administration, thereby allowing the Department to focus on other functions and activities, more speedy distribution of generational wealth to beneficiaries and a reduction in legal costs to beneficiaries. 

In addition, the move should also result in reducing the burden on the Parish and High Courts, as fewer applications for Grants of Administration will be filed. All estates for persons who died without leaving a will and without minor beneficiaries but containing personal values less than J$1.5 million can now be referred to the AG Department for collection and distribution without the need for a Grant of Administration.

Lengthy processing time

He admitted to the lengthy process to obtain Grant of Administration and the lengthy time to collect assets and complete estate administration whilst conceding to the significant costs to obtain the Grant of Administration. 

Minister Chuck admitted that in some instances, the legal fees exceeded the value of the monies held or the value of the asset falling to the estate. This, he advised the parliament resulted in some estates being in abeyance for protracted periods, even in cases where there is a depreciating asset. He noted that in 2020 when parliament considered and approved the increase of the Deposit Insurance Coverage limit to J$1.2 million it was observed that the increase effectively covered approximately 97 per cent of all accounts at deposit-taking institutions. 

Accordingly, raising the limit of the small estate threshold to J$1.5 million should permit access to most of the deposits of deceased accountholders, who died intestate, without the requirement of a Grant of Administration, thereby unlocking wealth and monies for productive purposes.