Understanding the Role and Responsibilities of an Executor for Deceased Estates

Understanding the Role and Responsibilities of an Executor for Deceased Estates

by Jacqui Brauman

If you are considering appointing an executor, understanding their duties is crucial. This information is also valuable if you’ve been named as an executor of a will, guiding you about the responsibilities you need to be aware of. Additionally, if you’re a beneficiary of an estate and unsure about the executor’s duties, this discussion can offer clarity.

The primary role of an executor is to carry out the directives stated within a will. The executor does not have the latitude to adjust or reform the contents of the will; they are appointed solely to ensure its administration.

Funeral arrangements also fall within the purview of the executor in the event that family members abstain. This includes overseeing the handling of the deceased’s body as well as coordinating burial or cremation procedures.

The executor’s responsibilities extend further to include the identification and collection of all assets belonging to the estate, and understanding the associated debts. They are tasked with securing these assets, which may involve ensuring that effective insurance policies are established.

Determining whether a grant of probate is needed for executing and administering the will is another primary duty. Probate requirements vary, so previous videos on the subject are available for further clarity.

Next, the executor must comprehend the constitution of the assets, their associations with financial institutions, insurance policies, super funds, and more. Once delineated, these entities must be notified of the demise of the individual, usually around five or six weeks following the event, upon receipt of the death certificate.

Additionally, the executor is responsible for notifying banks, creditors, super funds, and other asset holders. In some cases, entities like Centrelink are informed by the funeral provider itself.

Beneficiaries need to be informed too, ordinarily through a solicitor, but it’s not mandated. This involves sharing a copy of the will and outlining the proceedings. Unlike in the U.S., will readings are not common in Australia. To assist beneficiaries, I have created a few informational videos about their rights to a copy of the will and the communication process.

The executor needs to then manage the assets—if real estate is involved, they need to transfer or sell as required. Similar actions apply to shares, businesses, and super funds. Bank accounts, through a formality process, are more straightforward but still require administrative paperwork.

If there are investment properties, the executor has to notify the state revenue office and file a final tax return with the ATO. Estates only declare a tax return if there’s a capital gains tax; otherwise, income generated by an estate usually does not warrant a tax return.

Prior to any distribution, all financial obligations must be cleared. No individual assumes the deceased’s debt unless it’s a joint debt. If claims arise against the estate, the executor must address these and strive for resolution.

Finally, estate distribution is arranged in accordance with the will’s stipulations.

Overall, the executor’s duties, expected to be fulfilled within a 12-month period, cover maintaining the estate’s value and acting in the best interest of the beneficiaries. Executors are not automatically entitled to payment or commission, but they can seek reimbursement for costs. Should the executor approach each asset systematically, the process can proceed smoothly, albeit potentially burdensome.

I hope this explanation sheds light on the role of an executor and alleviates some uncertainty surrounding their responsibilities. If you have any further questions, please do not hesitate to reach out to our team at TBA Law.

Call 1300 043 103 or send an email to admin@tbalaw.com.au.