JUSTICE LEGISLATION AMENDMENT (SUCCESSION AND SURROGACY) ACT 2014 (NO. 80 OF 2014) - SECT 15 New sections 31A to 31D inserted

JUSTICE LEGISLATION AMENDMENT (SUCCESSION AND SURROGACY) ACT 2014 (NO. 80 OF 2014) - SECT 15

        After section 31 of the Administration and Probate Act 1958 insert —

        " 31A     Protection of payments or transfers of property without requiring the production of a grant of representation

    (1)     A person who holds money or personal property for a deceased person of not more than the threshold amount may pay or transfer the money or the personal property without requiring the production of a grant of representation to any of the following persons who have legal capacity and who appear to be entitled to the money or personal property—

        (a)     the surviving spouse or domestic partner of the deceased;

        (b)     a child of the deceased;

        (c)     any other person .

    (2)     For the purposes of subsection (1), the threshold amount is the greater of—

        (a)     $25 000; or

        (b)     if an amount is calculated in accordance with section 31B, that amount.

    (3)     A payment of money or transfer of personal property which is made under subsection (1) and in good faith is a complete discharge of all liability in relation to the person who is paying or transferring the money or personal property.

    (4)     A receipt signed by a person aged 16 years and over who receives a payment or transfer of money or property made in good faith under subsection (1) is a complete discharge of all liability in relation to the person who paid or transferred the money or personal property.

    (5)     Nothing in this section affects or prejudices the rights of any person who has a claim to or against a deceased person's estate to enforce a remedy against a person to whom a payment or transfer has been made under subsection (1).

        31B     Threshold amount

    (1)     From 1 July 2015 and for each subsequent financial year, the threshold amount must be calculated in accordance with the following formula—

        A ×

where—

A         is—

        (a)     $25 000; or

        (b)     if an amount has been calculated in accordance with this formula and that amount is greater than $25 000, the amount as last calculated;

B         is the all groups consumer price index for Melbourne in original terms for the most recent reference period in the preceding calendar year most recently published by the Australian Bureau of Statistics as at 15 June immediately preceding the date on which the variation is made;

C         is the all groups consumer price index for Melbourne in original terms for the corresponding reference period one year earlier than the reference period referred to in B published by the Australian Bureau of Statistics as at 15 June immediately preceding the date on which the variation is made.

    (2)     If the threshold amount has been calculated under subsection (1) and—

        (a)     the threshold amount is reduced, the reduced amount does not take effect, except for the purpose of the application of the formula under this section in the following year; or

        (b)     if, in the next or subsequent financial year the threshold is increased following a reduction referred to in paragraph (a), that amount has effect as an increase only to the extent (if any) that—

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              (i)     the amount of the increase exceeds the amount of the reduction in the previous financial year; or

              (ii)     part of the reduction has not been set off against a previous increase.

    (3)     For the purpose of calculating the threshold amount in accordance with the formula under this section—

        (a)     if the amount of the variation is less than $1000, it must be rounded to the nearest whole $1; and

        (b)     if the amount of the variation is $1000 or more, it must be rounded to the nearest whole $10.

    (4)     On or before 1 July 2015 and on or before 1 July in each succeeding financial year, the Minister by order published in the Government Gazette, must declare the threshold amount that applies for the purposes of section 31A(2) as from the date specified in the order.

s. 15

        31C     Liability of person fraudulently obtaining or retaining estate of deceased

    (1)     Subject to subsection (3), this section applies to a person—

        (a)     who does not hold a grant of representation of a deceased person's estate; and

        (b)     who fraudulently or without full and valuable consideration—

              (i)     obtains, receives or holds the estate or any part of the deceased's estate; or

              (ii)     effects the release of any debt or liability payable to the estate.

    (2)     A person to whom this section applies is liable to account for the estate's assets to the extent of—

        (a)     the estate obtained, received or held by the person; or

        (b)     the debt or liability released.

    (3)     The liability of a person under this section is reduced to the extent of any payment made by the person which may be made by a personal representative who has a grant of representation of the estate.

        31D     Persons liable for the waste or conversion of a deceased's estate

    (1)     If a personal representative wastes or converts any part of a deceased person's estate for private use and then dies, the personal representative of that deceased personal representative is liable and chargeable in respect of the waste or conversion in the same manner as the deceased personal representative would have been if that person had been alive.

    (2)     The liability of the personal representative of a deceased personal representative under this section is limited to the extent of the available assets of the deceased personal representative.".