Subsection 436(1)
If there is a will
Subsection 436(1) of the MRCA provides that if an eligible person dies before an amount of compensation is determined and paid, the amount forms part of the person’s estate.
The late veteran or dependant will normally nominate their Legal Personal Representative in the will and only that person may provide the Department with instructions as to the bank account the compensation should be directed to.
What if there is more than one Legal Personal Representative?
In cases where a will nominates two or more people as Legal Personal Representatives, those people have equal legal authority to act on matters regarding the deceased’s estate, including equal legal authority to provide the Department with instructions as to the bank account the compensation should be directed to.
As an example, the delegate may decide to provide both Legal Personal Representatives with a copy of the determination and a bank account form requiring the signatures of both parties. However, if information is provided confirming one of the Legal Personal Representatives does not wish to act in their position, then the other Legal Personal Representative is not limited in their position and may proceed to instruct the Department in this regard.
What if the Legal Personal Representative does not wish to act in their position?
In cases where a Legal Personal Representative does not wish to act in their position, they may be able to renounce their role, however this can only be determined by the court. Delegates should be mindful that a Legal Personal Representative is not able to unilaterally appoint another person to take over as Legal Personal Representative. Delegates will need to be provided sufficient evidence from the courts to show another person has been appointed to the role, before that person can be provided any information relating to the claim.
Subsection 436(2)
If there is not a will
If the veteran dies intestate (i.e. with no will) before compensation is paid, and the delegate determines that no application will be made for probate of the will or letters of administration, the Commonwealth is not liable to pay the compensation.
What if someone applies or is granted letters of administration or probate?
If the delegate determines a person has applied for letters of administration, that person has legal control over the late veteran or dependant’s affairs and therefore has authority to advise DVA where compensation should be paid, once the court grants letters of administration to that person.
Example 1
A claim for compensation is made by the veteran prior to their death, however before compensation is determined and paid, the veteran passes away. The widow advises the delegate there is no will but that she is applying to the court for letters of administration. In the interim period before the court grants the widow letters of administration, the delegate should not provide the widow with any information relating to the claim. The court later appoints the widow as sole administrator and the delegate is satisfied the widow is the Legal Personal Representative. The widow, in her position as administrator, may instruct the Department as to the bank account compensation should be paid to.
Specific MRCA PI information relating to Legal Personal Representatives
Where a veteran dies before 1 July 2026
Subsection 78(7) of the MRCA in force before 1 July 2026 contains provisions preventing a Legal Personal Representative from converting a deceased veteran’s permanent impairment compensation to a lump sum.
Where a veteran dies on or after 1 July 2026
From 1 July 2026, subsection 78(7) of the MRCA is amended to allow a Legal Personal Representative to convert 100 per cent of a deceased veteran’s permanent impairment compensation to a lump sum, where the veteran died on or after 1 July 2026:
This choice to convert by the Legal Personal Representative is only permitted where the veteran did not convert their entitlement to a lump sum before their death.
The lump sum is payable to the late veteran’s estate.
The method of converting the lump sum for the estate excludes a lifestyle rating. Delegates may use the impairment rating and a lifestyle rating of zero to find the relevant compensation factor and the correct weekly MRCA PI rate.
The conversion factor (which converts the weekly MRCA PI rate to a lump sum) is based on the veteran’s gender and age at the time of their death.
The Legal Personal Representative must be provided a new notice and a further 6 months in which to choose to convert.
Note: Delegates should be mindful that where there is no Legal Personal Representative (i.e. the veteran dies without a will and no one is appointed to the position by the court), no other person may make the choice to convert to a lump sum. Delegates should follow the normal guidance in this chapter about what to do when there is no will.
Example 1 - LPR
A veteran who made a claim for permanent impairment compensation on 30 June 2026, passes away on 30 August 2026 with a valid will and a nominated Legal Personal Representative. The delegate determines on 5 September 2026 that the veteran was entitled to $36.00 per week, based on 15 impairment points and a lifestyle rating of 1. $36 per week for the arrears period between the date of effect and the date of death, is payable to the late veteran’s estate. The Legal Personal Representative also has the choice to convert ongoing weeklies of $28 (15 impairment points and zero lifestyle) to a lump sum, which is payable to the late veteran’s estate. The Legal Personal Representative has 6 months from the notice date in which to make this choice.
Example 2 – no LPR
A veteran who made a claim for permanent impairment compensation on 30 June 2026, passes away on 30 August 2026 without a valid will. The delegate takes the necessary steps to identify whether a person is applying to the courts for letters of administration or probate and forms the view that no one is. It is open to the delegate to determine that any permanent impairment compensation that might have been payable to the veteran, is not payable. As there is also no Legal Personal Representative, there is no choice to convert weekly amounts to a lump sum.
Getting help
If delegates require assistance with any matters relating to wills, estates or determining who is a personal representative, they should contact Benefits and Payments Policy via the Delegate Support Framework.