Estate Administration

Beneficiaries & The Will

As the Executor you will have to locate the original will if there is one.  If not you will have to consider making an application for Letters of Administration.

Once you have obtained the Will, this will provide a list of beneficiaries that you will need to contact and explain to them the process.  You should also take note of any concerns that a beneficiary may have with respect to the Estate or the Will.

Often a beneficiary wants their portion of an estate as quickly as possible, so it is important that you explain to them that distribution of an estate may take longer than six (6) months.  This is because the law in Queensland allows six (6) months for people to come forward and make a claim against the estate.

Reach out to us for assistance in administering an Estate.

Assets

The Executor must begin contacting financial institutions such as banks, superannuation companies, and insurers to identify what assets belong to the Estate.

Additionally, the Executor will have to contact government bodies such as Centerlink and regarding any pensions or allowances.

If the testator, that is the deceased person, resided in a retirement or care facility then the Executor will need to speak with them regarding their requirements for releasing any Refundable Accommodation Deposit (RAD).

In some instances the deceased may have resided in accommodation covered under the Manufactured Homes (Residential Parks) Act 2003 (QLD).  Probate is often required to release the estate from the Site Agreement in these instances.

It is important to remember that the assets of an Estate also include, jewellery, vehicles, personal effects, furniture and digital assets such as social media accounts and photographs.

Superannuation may be dealt with slightly differently so it is important to contact any superannuation companies early.

The Executor must prepare a complete asset and liability statement for the beneficiaries.

Reach out to us if you require assistance with this. 

Probate or Letters of Administration

Although not all estates require either of these, it is very important for an Executor to identify the need for either of them early on in Estate Administration.  Delays in obtaining them if required can be costly to the estate.

Probate is the where the Supreme Court recognizes that the Will is valid and that the named Executor is duly authorized to deal with the Estate.

Letters of Administration is where there is not a Will and an Executor is not able or willing to assume their responsibilities.  Sometimes Letters are needed if there is a Will however it is not legally valid.

The Executor must also advertise with the Queensland Law Reporter in the correct format prior to applying for either Probate or Letters.

The Court may ask further questions, or seek additional material from the Executor during this process.

Reach out to us if you have any questions in relation to Probate or Letters of Administration.

Dealing with the Assets

The Executor can begin to enact the instructions within the Will once Probate or Letters of Administration has been granted.

This may entail closing bank accounts and collecting life insurance or superannuation, liaising with utility suppliers and local councils.

This may also entail putting real property on the market or transferring it to the beneficiaries, and liquidating other assets in consultation with the beneficiaries.

An Executor is usually also the Trustee under a Will, unless another party is specifically named and given this prerogative.

The Trustee holds and manages the assets until the trust ends, usually once distributed unless a more complex Trust is established either under the Will or subsequent to it.

An Executor will require legal assistance when dealing with real property, such as a house or apartment, and even with respect to RAD or Manufactured Homes.

Allow us to make it easy for you and reach out to our team.

Taxes & Debts

The Executor must arrange for the final tax return for the deceased and taxes associated with any trusts under the Will.  

Any debts of the Estate must also be discharged prior to the Estate being distributed to the beneficiaries. This includes any mortgages over real property, outstanding council rates, utility bills, or leasing costs associated with manufactured homes or rentals.

Funeral, legal and other general expenses must also be paid and accounted for in preparation for distributions of the Estate and the Final Statement.

If you need assistance with arranging payments then please reach out to us.

Distributing the Estate

Once Probate or Letters of Administration, if either were required, have been obtained, and there are no legal actions pending against the Estate, the Executor may turn their mind to the distribution of the Estate.

Possible delays to distribution may include a family provision claim, caveats lodged over the probate, or simply the Court may be busy.

The Executor must take care not to distribute the Estate prior to six (6) months as during this time a family provision claim may be made.  Notices and legal proceedings may extend this to nine (9) months.  If a distribution occurs during this time the Executor may become personally liable for any damages or claims.

Prior to distribution however all debts must have been furnished or arrangements to do so made, taxes finalized, and the bona fides of the beneficiaries been established.

Some assets may take longer to liquidate, such as real property, and the Executor should make the beneficiaries aware of this.  The Executor may also have to address any issues with the beneficiaries if they have contrary views on the distribution of the estate. 

Some beneficiaries may wish to do a deal with the others in order to retain an asset rather than liquidate it.  A common example of this is where a residence has been gifted to 2 or more people in equal shares, however rather than sell the property on the open market, one beneficiary may elect to “buy out” the others.

 Regardless of the estate and Executor should seek sound legal advice in relation to distribution so please reach out to us.

Final Statement

The Executor is responsible for preparing a Final Statement of the Estate.

This contains all the details of the assets, liabilities, and how the Estate was distributed.  It is important that this be held on record by the Executor once the Estate has been distributed.

The Final Statement should also include all costs associated with the administration of the Estate.

Reach out to us for assistance with your Final Statement.