Administration of a deceased estate
When someone dies, it can be a very emotional and difficult time as you grieve their loss. If you’ve been appointed as the executor of a deceased estate, you may also feel unsure about what is required of you and what steps to take next. The following information is designed to help explain the process involved in the administration of a deceased estate. This information is also helpful to those who are interested in better understanding the role of an executor or administrator.
All estates are different, and some can be complex if they involve many assets, numerous beneficiaries and/or differing views among family members. The process of administering a deceased estate usually takes 6–12 months, but it can take longer. The steps outlined are only a guide detailing the general milestones in an estate. They may not cover all of the tasks required to be performed by the executor depending upon the circumstances involved in the estate.
As the executor, you can choose to retain the role and administer the estate according to the seven-step process described below. Alternately, you may decide that you do not want to be the executor. You may feel that you don’t have enough experience, are time poor or are concerned about the responsibilities and potential liability of being the executor. If you don’t take on the role, you and the beneficiaries will need to decide who may administer the deceased estate. A lawyer could assist you with this decision or you can speak to Queensland Public Trustee.
If a person dies without a Will, the estate would be administered by an administrator rather than an executor. The administrator would perform the same duties as an executor except instead of applying for probate from the court, they would apply for letters of administration. A lawyer or Queensland Public Trustee can provide you with information and options when someone dies without a Will.
Steps to administering a deceased estate
The steps detailed here provide guidance on what’s involved.
The Will and contacting beneficiaries
The first step is to locate the Will, if there is one, and identify the beneficiaries. In the case that we administer the estate, we will make contact with the beneficiaries to get details of the deceased, and list all known assets and liabilities.
The executor contacts the beneficiaries and explains the process, and what’s involved with the administration of the estate. The executor should also note any issues or concerns, for example, in relation to the Will or administration of the estate.
It’s particularly important to explain to beneficiaries that it can take some time to complete the entire process. By law there is a waiting period of six months for people to come forward and contest or make a claim on a Will, so this needs to be taken into account.
Confirming assets*
The executor should then contact banks, insurers, financial and government agencies, and any other institutions, to identify the full details of what the estate owns or in some cases owes. During this time, the executor will arrange for the assets to be transferred to the estate and can arrange valuations and appraisals to help beneficiaries decide whether to keep, transfer or sell them.
*Assets are all the deceased person’s belongings—including large and small physical items such as property, vehicles, furniture and jewellery—and monetary and digital assets, for example, money from life insurance or superannuation through to things like digital photos on a smartphone or laptop. It is important to note that superannuation may not necessarily be paid into the estate. An executor should contact the superannuation organisation to work out whether the proceeds of the superannuation will be paid to the estate.
Obtain probate or letters of administration
This step involves preparing all the paperwork (forms and documents) that is required to apply for probate or letters of administration.
Probate is a court order granted by the Supreme Court of Queensland to recognise the Will is valid and that the executor is authorised to deal with the estate.
Letters of administration is a court order granted by the Supreme Court of Queensland when there isn’t a Will, or when there is a Will and the executor is not able or willing to act.
This stage can also include placing any legal advertisements and dealing with any questions the court may need you to answer before granting probate or letters of administration.
Not all estates and Wills need to go through the probate or letters of administration process—our FAQs detail when probate is needed.
You can find out more about the process, including getting access to required forms at Wills and probate Queensland Courts.
Dealing with the assets
Once probate or letters of administration is granted (if required), the executor can start to work on the instructions within the Will and begin tasks like closing bank accounts, finalising superannuation and other things, such as closing accounts with utility companies and telecommunications providers.
During this step, the executor should collect and sell assets based on the instructions in the Will, considering the wishes of the beneficiaries.
If assets are to be held in trust for a beneficiary, unless the Will appoints another person as the trustee, the executor manages the assets until the trust ends.
Paying debts and tax
Before a final distribution of the estate can be made to beneficiaries, any debts or money owed must be paid and settled. The executor is responsible for ensuring the funeral expenses are paid as well as confirming and paying any debts.
The executor is also responsible for making sure that a final tax return is prepared and lodged. Accountants and other financial institutions can help with tax returns.
Distributing the estate
By law, certain eligible people can make a claim against an estate for a share or greater share than what they are receiving. They have six months to notify the executor that they intend making such a claim. Typically, an executor would wait for this period to expire before distributing assets in the estate. If notification of a claim is received, then this could mean the estate is distributed differently from the terms of the Will.
If claims against the estate proceed, the administration of the estate and the distribution of assets can’t occur until after the claim is resolved.
The most commonly received claims in estates are called family provision claims. If a family provision claim is not received within six months, the executor can begin distributing the estate to the beneficiaries. By waiting this period, the executor is protected against any personal liability related to a family provision claim.
It’s important to note and advise beneficiaries that some assets may take longer to sell or transfer, and therefore not everything can be distributed immediately.
At times there will be differing views among the beneficiaries. The executor may need to work through these issues with everyone. This process can at times contribute to delays in the administration of the estate. An executor should act impartially and consider all the views of the beneficiaries when making decisions in the administration of the estate.
Read more about Family Provisions.
Generally, if there are no legal actions pending, probate or letters of administration has been obtained (if required), the beneficiaries have been established, debts have been paid or accounted for, and tax has been finalised, the executor can consider distributions in the estate.
Final statement
When everything is completed, the executor is responsible for preparing a final statement that contains the details of the assets and how they were distributed. It should also include the final financial information including any debts paid and all the costs and expenses associated with the administration of the estate.
Frequently asked questions
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If there are minors entitled to a share in the estate, their share cannot be paid to them until they turn 18, or older as stipulated in the Will. This means a trust will need to be set up.
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This will depend on the types of assets the executor needs to deal with. The executor will need to check with the organisations involved (for example, the financial institution) whether they require a grant of probate to be able to release funds or assets. Each financial institution, for example, will have differing requirements. You may not need one if:
- The value of the asset is relatively small (for example, a small bank account)
- The real estate/property is to be transferred to a beneficiary named in the Will
- You must sell real estate.
You don’t need a grant of probate if the asset (such as the family home) is in joint names because it already belongs to the surviving joint owner.
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If you don’t want to take on the role as an executor, then you and the beneficiaries will need to decide who may then administer the deceased estate. You can approach a solicitor or Queensland Public Trustee who will be able to provide you with information about what options may be available to you.