Probate and letters of administration are both legal processes that confirm who has authority to manage an estate. In practical terms, they help executors or administrators deal with banks, super funds, and asset transfers.
When probate applies
Probate usually applies when there is a valid will and an executor is seeking formal authority. Institutions often ask for a grant of probate before releasing assets or transferring property.
When letters of administration apply
Letters of administration usually apply when there is no will (intestacy), or sometimes when no executor can act. The appointed administrator then has authority to collect and distribute estate assets.
Why institutions ask for these grants
Banks and other institutions need confidence they are dealing with the right person. A grant helps protect the estate and reduces the risk of assets being released to someone without authority.