What Does an Executor Do When Administering an Estate?

After your death, the executor named in your Will is legally responsible for managing and distributing your estate in accordance with your wishes. This role involves a range of duties, both administrative and legal. Below is an outline of the key responsibilities:

Initial Responsibilities

1. Locate the Will
The executor must locate your original, valid Will to determine your instructions for distributing the estate.

2. Notify Relevant Parties
The executor must notify the Australian Taxation Office (ATO) of your death, as well as relevant institutions such as banks, superannuation funds, Centrelink, and other service providers.

3. Arrange the Funeral
The executor is responsible for making funeral arrangements or otherwise arranging for the disposal of your body, taking into account any preferences expressed in your Will.

Administering the Estate

4. Identify and Secure Assets
The executor must identify all assets owned by you at the time of your death—such as property, bank accounts, shares, vehicles, and personal effects—and take steps to protect and secure them. This includes arranging insurance where necessary.

5. Apply for Probate (if required)
In most cases, the executor will need to apply for a Grant of Probate from the Supreme Court in the relevant state or territory. Probate is legal confirmation that the Will is valid and gives the executor authority to administer the estate.

6. Identify and Pay Debts and Liabilities
The executor must identify any outstanding debts or liabilities (e.g., loans, credit cards, utility bills, tax obligations) and ensure they are paid from the estate before distributing any assets to beneficiaries.

7. Finalise Tax Matters
This may include lodging a final individual tax return, managing estate tax returns, and addressing any capital gains tax obligations. It is advisable to seek advice from a tax professional or solicitor.

8. Manage Real Property
If property forms part of the estate, the executor may need to arrange for its sale, transfer, or rental in accordance with the terms of the Will.

Distributing the Estate

9. Distribute Assets to Beneficiaries
After all debts, taxes, and costs have been settled, the executor distributes the remaining assets to the beneficiaries as set out in the Will.

10. Provide Information to Beneficiaries
The executor must keep beneficiaries reasonably informed about the administration process and provide relevant information or documentation upon request.

11. Maintain Accurate Records
The executor must keep proper records and accounts of all transactions involving the estate. In some cases, they may be required to provide a formal account to the beneficiaries or the court.

Important Considerations

• Timeframes: Certain tasks must be completed within specific timeframes, such as applying for Probate and distributing the estate within a reasonable period (usually within 12 months, referred to as the “executor’s year”).

• Legal Advice: Executors are encouraged to obtain legal advice to ensure they fulfil their responsibilities correctly and minimise the risk of disputes or personal liability.

• Rights of Beneficiaries: Beneficiaries are entitled to be kept informed and may have legal rights to challenge delays or question the executor’s actions.

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