Who can administer an Estate?
Normally the executor named in the Will or the person to whom Letters of Administration are issued by a Court can administer a Will.
What are the duties of the Executor?
If you are the executor of an estate, you have a large number of legal obligations and rights. These obligations and rights include:
- Ascertain all of the assets of the deceased including bank accounts, real property, physical property, insurance policies, jewellery, vehicles etc;
- Obtaining the assets of the deceased and bringing them into your control;
- Pay all outstanding debts of the deceased;
- Ensure that all assets of the deceased are insured and secured;
- Ascertain if the deceased had any business interests and ensure they are maintained until they can be adequately dealt with or transferred;
- Arrange all tax affairs of the deceased including the lodgement of tax returns;
- Keep very detailed records of all actions taken by you or your professional advisors; and
- Distribute the residue of the assets of the Estate to nominated beneficiaries who are entitled to those assets under the Will.
Are funeral costs paid from the Estate?
Yes, all costs incurred for the funeral are payable by the Estate. Normally, banks will pay the funeral expenses from the bank account of the deceased if you provide the Banks with a tax invoice for the funeral costs.
Where should an executor start with Estate Administration?
If you are the executor of an estate, you should do the following as soon as possible after the death of the deceased:
- Get a copy of the deceased’s death certificate;
- Get a copy of the last Will and Testament of the deceased (normally kept with the deceased’s lawyers);
- Open a bank account in the name of the deceased Estate;
- Ascertain all assets and liabilities of the Estate. You should consult the deceased’s lawyer, accountant and other advisors to ensure you have ascertained all of the assets of the deceased;
- Apply to Court for a Grant of Probate (if there is a Will) or Letters of Administration (if there is no Will). You should seek legal advice before doing this;
- Pay off outstanding debts of the Estate and then distribute the assets in accordance with the Will.
Can I be liable for loss if I am the Executor?
As an executor of an Estate, you owe a duty of care to beneficiaries of the estate to act as a ordinary prudent business person. You, as the executor can be personally liable for any breaches of this duty of care.
It is highly recommended that you obtain professional legal advice as soon as you find out you are the executor of an Estate. It is a role which involves a lot of responsibility and can often be challenging and time consuming.
We are highly experienced in assisting executors administer Estates. We have advised Executors around the world involving Estates with assets in various countries.