When a loved one dies, a next of kin is usually responsible for making legal decisions, funeral arrangements and administering the deceased estate.
In Australia, the term 'Next of Kin' means a person's spouse, domestic partner or closest living blood relative who is over 18 years of age. Whilst there is no formal legal recognition or legal rights of Next of Kin, they play a very important role if a person dies without a valid Will.
While the beneficiaries of the estate (e.g. friends or family members) are not responsible for the debt, the estate may lose the asset if the loan can't be repaid. If the deceased has a secured or unsecured debt in joint names, then everyone named on the account is responsible for the debt.
So in short you aren't automatically responsible for a spouse's or registered civil partner's debts. And while the Personal Representative is not personally liable for the debts of the deceased, those debts are likely to have to be paid from the estate of the deceased.
Although Australia does not impose death taxes, there is still an obligation to pay back any tax owing on earnings and investments that was held by the deceased. Secured debt, such as a mortgage, will also be discharged by the executor before any unsecured debts.
Does a next of kin have legal rights and responsibilities? No. The term next of kin is in common use but a next of kin has no legal powers, rights or responsibilities. In particular, they cannot give consent for providing or withholding any treatment or care.
In the absence of a surviving spouse, the person who is next of kin inherits the estate. The line of inheritance begins with direct offspring, starting with their children, then their grandchildren, followed by any great-grandchildren, and so on.
The term usually means your nearest blood relative. In the case of a married couple or a civil partnership it usually means their husband or wife. Next of kin is a title that can be given, by you, to anyone from your partner to blood relatives and even friends.
Some banks or building societies will allow the executors or administrators to access the account of someone who has died without a Grant of Probate.
A next of kin can be a spouse, child or relation. It should however be noted that a next of kin is not necessarily the person intended as direct beneficiary of the deceased's estate or entitlement.
There is a hierarchy which determines who is deemed closest to you as “next of kin.” Your spouse or civil partner comes first, then your children, then your parents, siblings, grandparents in that order.
If there is no surviving partner, the children of a person who has died without leaving a will inherit the whole estate. This applies however much the estate is worth. If there are two or more children, the estate will be divided equally between them.
As there are no clear legal rules, however, a next of kin doesn't necessarily have to be a blood relative. While this is most often the case, it could also be a partner or a close friend, particularly if you are in hospital and need to name a next of kin and provide their details to medical staff.
Does the Common-Law Next-of-Kin exist? In probate law there's no legally defined terms for common law spouse or next-of-kin, yet the belief is that an unmarried cohabiting partner is the next-of-kin and entitled to receive your estate on your death if you haven't written a will.
Theoretically, anyone can challenge a will, whether that's a sibling, or someone who doesn't appear to benefit on first glance, but may be a residuary beneficiary. However, contesting a will is not something you should consider without good reason.
A person's next of kin is typically their spouse or closest living relative. The following hierarchy determines who is the most senior next of kin (in order): spouse or domestic partner; adult son or daughter (eldest surviving takes seniority);
How Can You Prove You Are The Next of Kin? As a blood relative, proving you are that person will be relatively straightforward. A certified copy of your passport or other forms of recognised ID will demonstrate you are who you say you are.
The executor can deposit the deceased person's money, such as tax refunds or insurance proceeds, into this account. They can then use this money to pay the deceased person's debts and bills, and to distribute money to the beneficiaries of the estate. assets and property.
Do You Inherit Your Parents' Debt? If a parent dies, their debt doesn't necessarily transfer to their surviving spouse or children. The person's estate—the property they owned—is responsible for their remaining debt.
Centrelink payments generally stop after death, but some payments may continue a week or two after death. If Centrelink paid more it should (e.g because of a delay in notifying them of the death), Centrelink will recover the overpayments as a debt from the estate.
Who is disqualified from inheriting under a will? The following people are disqualified from inheriting under a will: a person or his/her spouse who writes a will or any part thereof on behalf of the testator; and a person or his/her spouse who signs the will on instruction of the testator or as a witness.
For single people (including those who are widowed or divorced), your next of kin may be your children, or if you have no children, then your parents, or if they have died before you, then your siblings – ie your nearest living relatives.
Helen: If someone has left a will and you are a beneficiary of an estate, you would usually be contacted by the executor, or the solicitor the executor has instructed, to notify you that you are a beneficiary.
Who Else Can Qualify As Your Next of Kin? 1. Half-Relatives. “Half” relatives inherit as if they were “whole.” That is, your sister with whom you share a father, but not a mother, has the same right to your property as she would if you had both parents in common.