Did you know you can reactivate an estate years after it’s been administered?
25 October 2022
Sometimes, many years after an estate is administered, it can be reactivated. In these instances, Trust Officers find themselves reconnecting with beneficiaries, often to provide good news.
When *Jenny’s daughter passed away at 42 years of age, the main asset in her estate was a $200,000 life insurance policy. An application for a death claim was lodged with the insurance company to redeem the policy, however it was rejected. The rejection was based on medical evidence that Jenny’s daughter took out the policy knowing she was of ill health, and that illness was the main contribution to her death. Jenny and her family were devastated.
The Public Trustee completed the administration of the estate in 2015. However, recently, following the Royal Commission into the banking and finance industry, the insurance company reversed its decision to pay out on the estate.
As a result, our Trust Officers were able to reconnect with Jenny and her family and inform them the insurance company approved the claim and more than $276,000 was being allocated to the estate.
Even after an estate matter has been completed, it can still be reactivated in light of new evidence resulting from class actions and enquiries that are undertaken.