Probate and Deceased Estates
A deceased estate includes the assets and debts left behind after someone passes away. Assets may include real estate, jewellery, furniture, cash, shares, and cryptocurrency, while debts could include formal and informal loans, credit cards, store credits, and any outstanding amounts owed to the Australian Taxation Office.
The process of managing and distributing a deceased estate is called estate administration. This involves settling the estate's debts and distributing the remaining assets to the beneficiaries, as well as handling any financial and legal matters that arise. Estate administration can be a challenging task, especially while grieving the loss of a loved one.
We can assist with all aspects of estate administration, from identifying and collecting assets to applying for probate (or letters of administration), transferring assets and property, and keeping beneficiaries informed throughout the process.
Executors and Administrators - What's the Difference?
When you create a Will, it’s important to appoint one or more individuals to manage your estate upon your passing. This person, known as your executor, is responsible for carrying out the terms of your Will, which usually involves paying your debts and distributing your property according to your instructions. However, an executor also has significant discretionary powers, meaning they can override the terms of your Will if necessary. For example, they may need to pay debts even if it means not strictly adhering to the bequests in your Will.
An executor may need to apply to the Supreme Court for a grant of probate, which is the legal process that confirms the validity of your Will and grants the executor the authority to manage the estate's assets (such as transferring assets into their name or selling them). A grant of probate is often required before third parties, like banks, will release any assets.
If you pass away without a valid Will, a person (usually your next of kin) will need to apply for letters of administration, a different legal process that authorises someone to manage the estate. This process can lead to added stress, delays, and costs for your family, which is why it’s important for every adult to have a Will that is secure and up to date.
Executors and administrators have many responsibilities, including:
- Making funeral arrangements
- Obtaining the death certificate
- Identifying and protecting assets
- Applying for a grant of probate or letters of administration
- Contacting the deceased’s account providers and government authorities
- Claiming funds under superannuation and life insurance policies
- Distributing assets and transferring property to beneficiaries