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Written by: Yolandi Breedt
If you’ve been appointed as the executor of a Will, there are many things to consider when handling the deceased estate. Executors have important responsibilities to the estate and beneficiaries, which means you could be personally liable if the estate administration isn’t handled properly.
If you do decide to accept the duties of executor (you don’t have to accept the role) there are a few key tasks you will need to manage. In this article, we’ll review the essential responsibilities you must handle as the executor of a deceased estate.
1. Organise and Pay For The Funeral
As an executor, you’ll need to organise and pay for the funeral using the deceased person’s funds.
As long as there’s enough money in the bank account, the bank will typically allow payment of the funeral invoice. However, once this payment is made, the bank will freeze the account to stop any further withdrawals.
If the deceased does not have enough in their accounts to cover the invoice, the executor or a family member can cover these costs and be reimbursed down the track when other assets are released.
2. Get An Official Death Certificate
In order to administer the estate, you’ll need to get an official death certificate. The funeral director typically arranges the registration of a death and the application for a death certificate.
If needed, you can request multiple copies from the Registry of Births, Deaths & Marriages. Certified copies are accepted in most situations.
3. Gather Assets & Determine Their Value
As an executor of an estate, you will need to determine exactly what the deceased’s assets and liabilities are. You’ll also need to determine where they’re located and what they’re worth.
Assets may include:
- Cash;
- Real estate;
- Bank accounts;
- Shares;
- Superannuation;
- Life insurance;
- Trusts;
- Digital assets;
- Vehicles and personal items;
- Unpaid debts owed to the deceased.
4. Get Professional Help for Valuing High-Value Assets
The executor should obtain professional valuations on any assets of significant value such as real estate, collectibles, jewellery and business assets. This will provide a clear picture of the estate’s total value.
5. Secure and Protect Estate Assets
You will be responsible for ensuring all estate assets are safe and protected.
This may include:
- keeping insurance policies active (or starting new ones if needed);
- notifying banks to block account access;
- securely storing vehicles and belongings; and/or
- protecting digital assets.
6. Contact Beneficiaries
You’ll need to identify and get in touch with the beneficiaries named in the Will. A beneficiary is any person receiving something from the estate.
A copy of the Will should also be provided to anyone who is legally entitled to ask for it.
Early communication allows beneficiaries to understand their entitlements, ask questions and, if necessary, seek independent legal advice.
7. Apply for a Grant of Probate
If required, you’ll need to apply for a grant of probate.
A grant of probate is simply the court’s official approval of the deceased person’s last Will. A grant confirms the executor as the rightful person to administer the estate and the beneficiaries as those rightfully entitled to receive the deceased person’s assets.
Is Probate Required?
A grant of probate is not a legal requirement. Depending on the type and value of the assets, some estates can be administered without probate. However, most organisations require probate to release assets of significant value to the executor.
For instance, banks require probate to release funds held where the value of those funds exceed the bank’s set limit (this amount varies between each organisation).
Aged care facilities also usually require probate to release an accommodation deposit or bond.
8. Pay Outstanding Debts
Make sure any debts owed by the deceased or the estate are paid. This includes tax obligations and reimbursing anyone who covered costs on behalf of the estate.
Liabilities may include:
- Mortgages;
- Credit card debts;
- Personal loans;
- Utility bills;
- Medical bills;
- Centrelink overpayments;
- ATO tax debts.
9. Determine Your Commission
Executor’s commission is a payment that can be made to the executor from the estate to cover the ‘pains and trouble’ in administering an estate. There is no automatic entitlement to commission. It must either be authorised by the deceased’s Will, agreed to by all the residuary beneficiaries or approved by the Court.
The amount claimed is discretionary and typically calculated as a percentage of the estate’s assets. When seeking commission, an executor should provide a clear summary of the work undertaken and maintain records throughout the administration to justify the request and avoid any claims against your commission.
10. Distribute the Remaining Assets
Once all the estate debts are paid off, you may distribute the remaining assets, or their sale proceeds, to the beneficiaries.
What About Powers of Attorney?
An Enduring Power of Attorney (EPA) ends as soon as the person who made it passes away.
It is unlawful to continue acting under an EPA in this situation. Bank authorities given while an account holder is alive also cease immediately upon death.
The ten tasks covered in this blog are the main things you’ll need to do as the executor of a Will, but they’re not the full list. There may be other jobs you’ll need to handle along the way. If you have more questions about acting as the executor of a Will, get in touch with one of our trusted Wills & Estates lawyers today.
Disclaimer:
The information contained in this article is for general informational purposes only and is not intended to provide legal advice or substitute for the advice of a professional. This information does not consider your personal circumstances and may not reflect the most current legal developments. Should you need advice, please contact our firm for targeted information relating to personal your situation.
Greenhalgh Pickard’s Family Law Team
