Understanding survivorship application in Victoria: a comprehensive guide
If you are a joint property owner in Victoria, whether it’s a house, bank account, or any other assets, it’s essential to grasp the concept of survivorship application. In the unfortunate event of a joint tenant’s passing, such an application becomes crucial. This blog post will delve into the ins and outs of survivorship applications in Victoria, detailing when they are required, the process involved, financial and tax implications, and how to simplify this often complex procedure.
What is a survivorship application in Victoria?
A survivorship application in Victoria is a legal process that allows a surviving proprietor to remove the deceased joint tenant’s name from a property title. This ensures that only the name of the surviving proprietor remains on the title. The survivorship application is essential when you jointly own property or assets, and one of the joint owners has passed away.
Key steps in a survivorship application in Victoria:
- Conduct relevant title searches: Begin by conducting the necessary title searches to gather essential information.
- Prepare application: Prepare an application to change the certificate of title, which will include relevant details.
- Certify documentation: Ensure you have appropriate certification, such as a death certificate.
- Notify authorities: Inform relevant government authorities of the change in property ownership.
- Lodge documentation: Submit the necessary documentation through PEXA.
- Bank settlement: If there is a mortgage involved, coordinate with the bank for settlement, which may include paying off the loan or taking out a new loan in your individual name.
When is a survivorship application in Victoria required?
A survivorship application is typically required when jointly owned property or assets have one of the joint proprietors pass away. It’s advisable to initiate the survivorship application promptly, especially if you plan to sell the property. Completing the application before selling ensures that the updated title can be included in the Vendor’s statement.
The survivorship application in Victoria process:
The survivorship application process in Victoria can be completed through the Property Exchange Australia (PEXA) online transaction portal. The required documents may include:
- Application by surviving proprietor (ASP) form
- Certificates of Title
- Verification of identity
- Statutory declaration
- Death certificate
- Notice of Acquisition
The processing time for a survivorship application can vary depending on individual circumstances but generally takes up to 3 to 10 business days.
Involvement of banks:
If a mortgage is associated with the property title, the surviving proprietor should contact the bank. They may have two options:
- Pay off the loan: The surviving proprietor can choose to pay off the outstanding loan.
- Take out a new loan: Alternatively, they can opt to take out a new loan in their individual name.
The decision between these options will depend on the surviving proprietor’s specific financial situation.
Financial and tax implications:
It’s essential to consider the financial and tax implications of a survivorship application in Victoria. Each owner in a joint ownership arrangement is responsible for the capital gains tax on their share of the property (if the property is an investment property). Therefore, after completing a survivorship application, your tax responsibilities may change. If you are uncertain about your tax obligations in this context, it’s advisable to seek advice from an accountant or financial expert.
Simplify the survivorship application in Victoria process:
Dealing with the loss of a joint property owner can be emotionally challenging and overwhelming. Handling legal paperwork during such a time is just one of the many tasks you may need to address. To make the survivorship application process more manageable and less stressful, consider the following tips:
- Seek legal expertise: engage the services of experienced estate or property lawyer who specialise in survivorship law and estate matters. Their expertise can simplify the process and relieve you of legal burdens during a difficult period.
A survivorship application in Victoria is a crucial legal process that ensures the seamless transfer of property ownership when a joint owner passes away. Understanding the process, knowing when it’s required, and being aware of the financial and tax implications are essential for a successful application. While it may seem overwhelming, seeking legal assistance from experts in survivorship law, such as Haitch Conveyancing, can streamline the process and provide much-needed support during challenging times.
For professional guidance and assistance with your survivorship application, please contact Haitch Conveyancing at (03) 8590 8370 . We are here to help you navigate this process with care and sensitivity, ensuring that your legal matters are handled efficiently, allowing you to focus on what truly matters during these times of loss.
We are a team of experienced property lawyers who can help you understand the implications of all aspect of property transactions in Victoria. Contact our team onto obtain legal advice from our expert property lawyers and conveyancers. We are an online property law and conveyancing firm that can assist when buying or selling property.