When someone passes away leaving a Will, the person named as executor takes on the legal responsibility of managing the deceased’s estate. The RMB Wills & Estates & Disputed Wills Division explains.
An executor is legally and ethically required to act in good faith, with care, honesty, and diligence. Until the estate is fully administered and distributed, the executor acts as a trustee for the beneficiaries and must protect the estate’s assets.
The executor's key duties include:
- Identifying and collecting all estate assets – including bank accounts, real estate, superannuation, shares, personal property, and any income owed to the deceased;
- Paying the deceased’s outstanding debts and liabilities – such as credit cards, mortgages, utility bills, loans, and funeral expenses;
- Finalising tax matters – which may involve lodging the deceased’s final income tax return, as well as preparing an estate tax return (if required); and
- Distributing the estate to the named beneficiaries in accordance with the terms of the Will.
A Grant of Probate is a legal document issued by the Supreme Court confirming the validity of the Will and the executor’s authority to deal with the estate. In many cases, third parties such as banks, superannuation funds, and government agencies will not release assets to the executor without first sighting a Grant of Probate.
Once probate is obtained (if required), the executor’s next responsibility is to secure and gather all assets owned by the deceased. These may include closing and collecting funds from bank accounts; claiming superannuation death benefits (which may or may not form part of the estate); collecting the proceeds of any life insurance policies; selling or transferring real estate; managing shares, managed funds, or business interests; and locating and securing valuable personal belongings or vehicles.
Before distributing the estate, the executor must ensure that all debts are paid. This includes confirming whether the deceased’s tax obligations are up to date. An accountant should be engaged to determine if a final tax return is required. The estate itself (as opposed to the deceased individual) may also have an obligation to lodge a tax return.
After all debts and taxes have been paid, the executor can proceed to distribute the estate in accordance with the terms of the deceased’s will.
If you’ve been appointed as an executor and are unsure of your obligations, our team can guide you through the entire estate administration process. Your first step should be to contact our office to arrange a consultation. You can contact us by by phone or our 'Ask a Question' tool on our website.