Being appointed the executor of a will is not for everyone. There are many reasons that can make handling a loved one’s deceased estate overwhelming – from administrative burdens or legal steps, to being emotionally worn down, it can be too taxing for many.
Here, we explore the most common problems with deceased estate administration, and look at how appointing State Trustees as the executor of your will can help take the pressure off you and your family.
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The differences between probate and deceased estate
Before we get underway, let’s quickly touch on two terms so there is no confusion.
- A deceased estate is everything a person owns and owes when they died, including property, money, personal belongings, debts and liabilities. Managing a deceased estate involves collecting assets, paying debts and distributing what remains to beneficiaries.
- Probate is a legal step that often happens before the deceased estate can be administered. Probate is a court order confirming that the will is valid and giving the executor the authority to manage the estate. Learn more about what probate means.
Key challenges Victorians face with administering a deceased estate
Legal responsibility
Did you know that executors have a legal duty to manage the estate according to the law and the deceased’s wishes? This means they need to understand and abide by the legal requirements for probate, asset distribution, and tax obligations. If they do not, they may wind up in prolonged and costly legal probate disputes or even personal liability.
For many, this is the first and most significant hurdle to accepting the role of executor.
How State Trustees can assist:
Our specialist lawyers are well-versed in the legal responsibilities that come with this role. Moreover, as the only government-backed organisation of our kind in Victoria, we are heavily regulated and always up to date with legislation.
Tax implications
It is very common for a deceased estate to encounter tax implications, including income tax responsibilities for their final tax return (known as a ‘date of death tax return’) and possible Capital Gains Tax (CGT) if selling assets. Executors can’t turn a blind eye and plead ignorance; they must be aware of these obligations and identify and declare them to the Australian Taxation Office (ATO) to ensure the estate remains tax compliant.
How State Trustees can assist:
Our experienced tax specialists take care to keep every client’s tax obligations and entitlements up to date and compliant. We are also recognised leaders in deceased estate taxation, working closely with individuals, law firms and tax professionals throughout Victoria to provide trusted, expert support.
Learn more about deceased estates and tax – watch this easy-to-follow, informative State Trustees YouTube video.
Administration overload
Even a fairly straightforward will requires the executor to follow protocols, complete and file forms, and keep up with significant administrative requirements. The probate process alone is often lengthy, complicated and riddled with delays.
Being an executor typically comes with a demanding workload, especially if the person already has their own personal commitments and obligations.
How State Trustees can assist:
Our team of experts is very familiar with and capable of handling the administrative load that comes with this role. We’ve helped thousands of Victorians, and we know the processes. With 80+ years of operation, we have the skills and experience to manage estates of all complexities.
Dealing with debt
Not everyone dies when they expect, and not everyone leaves with a clean slate. Dealing with debt can be a major toll on family members, and bring up all kinds of emotions and confusion. It also requires very strict protocols and payment priorities to be followed.
How State Trustees can assist:
Our experts are very familiar with identifying any deceased estate debt, and following the legal processes required to pay off creditors before distributing to beneficiaries.
Family disputes
Estate administration can become sensitive and strained for families, especially when someone disputes how assets will be distributed. If a family member is also the executor, the lines between personal relationships and legal responsibilities can blur, making it difficult to remain impartial.
How State Trustees can assist:
We conduct all business without any regard for family bias. We remain a professional and impartial third party that will follow the wishes you outline in your will.
Valuing assets
Part of an executor’s role involves valuing all assets, including:
- Real estate
- Other property, such as cars
- Bank accounts
- Jewellery, art
- Investments (including superannuation)
This can sometimes prove difficult for a family member, especially if any of the items have sentimental value. Also, incorrect valuations can delay tax calculations and even the distribution of assets.
How State Trustees can assist:
As a third party, we remain impartial throughout the process and seek objective, professional valuations only.
Reliability
Relying on a family member as executor can bring uncertainty. Relationships can change, personal circumstances can shift, and an individual executor may even pass away before or during the administration of your estate.
How State Trustees can assist:
We’ve been serving Victorians for more than 80 years and, as a state government-backed organisation, our commitment is enduring. When you appoint us as your executor, you can rely on consistent, long-term professional support, no matter what changes in your life.
Learn more about why to appoint State Trustees as executor of your will.
Our professional advice for executors and beneficiaries
If you’re already the executor of a will, the above information might have come too late. If that’s the case and you’re already starting to feel anxious about what lies ahead, keep the following advice top-of-mind:
- Communication is key
Communicate clearly with beneficiaries and keep them in the loop, even if it’s simply to say you have not progressed something, but you’re working on doing so. - Get a full list of all assets and all liabilities as early as possible
This might not end up being nearly as straightforward as you assume, so start early. - Document everything
Maintain accurate records, whether it be phone conversations or formal meetings. - Understand your obligations
You’ve heard the saying, “Ignorance is no defence”. Make sure you understand everything that is expected of you, and when and how you’re expected to do it. - Seek specialist advice
You’re expected to know your obligations, but you’re not expected to be a financial or accounting expert. Seek out those who are and ensure you get the best specialist advice. - Get professional valuations
Don’t rely on an amateur guess. Get all your quotes from professionals and ensure they’re in writing and documented.
Contact us about managing deceased estate
If given the choice, most family members would likely prefer to grieve rather than be overwhelmed by paperwork and protocols. If you agree, and don’t want to subject your loved ones to the burden, contact State Trustees Victoria today and see how we can help with the administration of a deceased estate.
Contact us for an experienced, independent trustee to guide this process smoothly and fairly.
FAQs About Deceased Estates
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Deceased Estates
You can appoint a family member as your executor, but it is not always the best choice. Estate administration challenges can be complex, time-consuming and emotionally demanding, especially when the executor is also grieving. Executors must follow strict legal and financial requirements, manage family expectations and remain completely impartial, which can be difficult for someone closely involved. Many Victorians instead choose a professional executor, such as State Trustees, to reduce stress and burden on loved ones and ensure their estate is managed efficiently, legally and in keeping with their wishes.
If you prefer not to appoint a family member, you can choose a professional executor. In Victoria, this includes organisations, like State Trustees, which is a government-backed, independent trustee with more than 80 years’ experience. Our professional executor responsibilities in Victoria include managing the entire deceased estate process, ensuring legal compliance, handling tax and debt obligations and making decisions impartially. This can help provide families with clarity, reduce conflict and remove the burden of administration during a difficult time.
Whilst an executor is unlikely to be personally liable for the deceased’s debts (should they surpass the estate’s value), they may face consequences if the estate is not correctly administered. For example, the executor could be liable for losses caused by mismanaging the estate or by not correctly fulfilling their duties.
You may resign as executor as long as you have not already done anything that might be seen as ‘managing the estate’. However, resigning is a fairly detailed process, so be prepared to undertake many administration steps before you can officially renounce your role.
Straightforward cases can take from one to two months. However, a more complex case, or one already involving a probate dispute, can take as long as a year and sometimes beyond.
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