The Role of the Executor
The role of an executor can be complex and time-consuming that requires experience in finance, business and law.
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What are the typical initial duties of an executor?
To locate the original Will, advise family and friends, then assist and pay for the funeral, and follow up the special wishes/ instructions from the deceased
What does an executor need to know?
Some understanding of estate law and finance. It can be very challenging and time consuming if you don’t have relevant experience in business, finance or law
What happens if no Will can be found?
The estate will be distributed in accordance with the laws of intestacy, which provide a particular order of payment
Who notifies and locates the beneficiaries of the Will?
The executor. All beneficiaries (including those overseas) must be contacted
What happens if the deceased has debts and liabilities?
It is the duty of the executor to establish a complete picture of the deceased’s finances, including identifying any debtors and creditors. Funeral expenses, income tax, fees for administering the estate and out-of-pocket expenses must also be paid.
Is it the role of the executor to carry out everyday tasks?
Yes, the executor has the responsibility to arrange for pets to be cared for, redirect mail, cancel services and pay any outstanding bills
Does anything have to be done to secure the estate in the short term?
Yes. The executor must identify the estate assets including any interstate or overseas and have them valued, secured and insured. This would include such things as a home, car, superannuation, jewellery, investments and home contents
Can the executor be responsible if something happens to the assets?
Potentially yes. It is important for the executor to ensure that all assets including property, collectibles and investments are safe and to arrange insurance protection if needed
Can the estate start to be administered straight away?
No. The executor needs to apply to obtain a Grant of Probate from the court saying that the Will is valid and that the executor has the right to administer the estate. However, there are steps which need to be undertaken in anticipation of a Grant
What happens if the deceased has any businesses?
It is the executor’s duty to deal with a business, which may include steps to determine if the business operates as a Sole Trader, Partnership or Company. The executor may be required to wind up the business, sell real estate and other assets, attend to taxation issues and return and invest funds in a prudent manner
Are there any legal issues or risks the executor might come up against?
Yes. The executor is responsible for resolving estate issues, liabilities and disputes. This may consist of challenges to the Will including, TFM claims, entitlement issues and beneficiary disputes.
Do tax returns need to be lodged by the executor?
Yes. Before an estate can be distributed, it is necessary to obtain a clearance from the Australian Taxation Office. It requires both a date of death and an estate tax return. The executor will have to give details of all income earned during the current financial year and past years.
Is it the responsibility of the executor to sell the assets?
Potentially. It is the role of the executor to sell or transfer assets to the beneficiaries. This includes all assets such as house, land, shares and investments. In doing so, they must take into account any costs of sale and any capital gains tax
What happens when all debts have been paid?
Subject to the payment of funeral, testamentary expenses, debts and the management of any claims the executor can then distribute the remaining assets according to the directions laid out in the Will and prepare a statement for all beneficiaries detailing all transactions
If the deceased had requests for trusts to be set up, who is responsible for this?
The executor is usually also the trustee for trusts set up in the Will or alternatively trusts may be required if the beneficiary is under 18 years of age. Such trusts need ongoing administration, often over many years
Being an executor can be time-consuming and emotionally demanding. You may be personally liable for the decisions you make. So agreeing to be executor is a decision which should not be taken lightly.
If you choose State Trustees to act as executor on your behalf, we will help save you time and take over the responsibility by managing the estate of your loved one.
We handle more Deceased Estates than any other organisation in Victoria and our expert consultants can take care of everything, so you can be sure the estate will be managed professionally, independently and impartially.
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