estate services qld

Estate administration is the process of dealing with all of the assets and liabilities left behind when someone dies. Every estate is different and can vary greatly in complexity, from relatively simple to quite complex. Ultimately, liabilities must be settled and assets distributed either under the terms of the deceased's valid will or the law. If the deceased died without a will, their estate will be administered under the rules of intestacy.

You have a duty to beneficiaries to properly administer the estate. Often beneficiaries are family, so as well as the legal side, we know there is a personal side to dealing with beneficiaries. 

On the legal side, you will need to locate and notify beneficiaries. You should also have them confirm they are not bankrupt.  If a beneficiary is bankrupt, you will need give their share (or a portion of their share) to their trustee in bankruptcy when you distribute the estate.

The personal side of dealing with beneficiaries can be a source support or stress depending on relationships and personalities. From a beneficiary's point of view, it can be some time between being notified about their benefit from the estate and funds being distributed. We can keep beneficiaries informed about the estate administration process, including time frames executors and administrators must wait to distribute the estate.

While we cannot act for or advise beneficiaries when we act for you as executor or administrator (this puts us in conflict), with your consent we can support them with information sharing that can give some reassurance at a difficult time. 

If beneficiaries have concerns they should seek independent advice.

Dealing with the deceased's assets is a major part of the job of administering the estate. This consists of three main tasks.

• Identify the assets

You will need to track down all of the deceased's assets. This may include their home, car, money in bank accounts, shares, digital assets, jewelry, art and so on. 

Some assets are not estate assets (but may still need to be dealt with), such as jointly held assets (which go to the surviving joint owner), assets held by entities (like company's or trusts), superannuation (unless it is left to the estate), or life insurance policies.

• Protect the assets

You will need to find the insurance policies that relate to any asset that should be insured. This may include insurance for the deceased's home (building) and contents, vehicle, business and landlord insurance for rental properties. If an asset that should be insured is not insured, take out a policy on behalf of the estate and insure it. 

• Collect the assets

The deceased's assets must be collected to administer the estate. For example, the money in all of the deceased's sole bank accounts must be paid into an "estate of" the deceased account, or a solicitor's trust account.

We can help you identify, protect and collect the assets of the estate, and hold funds in trust until distribution.

Dealing with the deceased' liabilities is a major part of the job of administering the estate. This consists of three main tasks.

• Identify the liabilities

You will need to track down all of the deceased's liabilities. This may include all loans, credit cards, utility bills and so on.

Note also, there may be one or more tax returns that need to be done, and the estate may be liable to pay any tax owed.

• Prioritize the liabilities

You will need to prioritize the liabilities of the estate which will need to be paid before the estate is distributed to beneficiaries. 

Payment of some liabilities may be delayed until estate funds have been collected (for example, deceased's credit card which will be frozen) but other liabilities must be paid as and when they are due, whether estate funds are available of not (for example, insurance). We can give you guidance with this.

• Pay the liabilities

Once the assets have been collected, all the liabilities can be paid before the estate is distributed to the beneficiaries.

Any estate tax returns must be finalized and any tax owing paid before distribution.

A spouse, child and certain types of dependents can give notice of an intention to bring a Family Provision Application in the first six months following the death of the deceased. This is a claim against the estate for a bigger share. The person making the claim then has to file their application in the Supreme Court within a further three months.  

Because of this, an executor or administrator should wait at least six months from the date of death to distribute the estate. If you get notice of a claim within the six month period it needs to be settled before distribution. 

If the executor distributes the estate early, and a successful claim is made, the executor may be personally liable for the claim.

An executor or administrator is under a duty to collect the assets of the deceased and administer the estate according to the law and without unnecessary delay (unless an executor renounces).

Executors and Administrators have to keep all the financial records of the estate administration and provide these if requested by the beneficiaries or the court.

An executor or administrator has the right to have their genuine expenses incurred as part of the estate administration paid back from estate funds once funds are available (they do not have to wait six months as this is an estate expense not beneficiary distribution). Executors are also entitled to apply to the court for a commission for their work done in administering the estate.  Executor's commission is often considered in matters where the executor who does all the work is not actually a beneficiary under the terms of the will, and this can be achieved by negotiation and agreement with the beneficiaries.

Once an executor or administrator has collected all the assets, paid all the liabilities including tax (if applicable), and waited at least six months, with no notice of a claim they can distribute the estate under the terms of the will or the laws of intestacy. There are laws that apply to the interpretation of wills so be sure to get advice if needed.

Every estate is different and where there is a testamentary trust, life interest or right to reside in a property, the administration of the estate may continue for many years under the terms of the will. Contact us to get advice about the steps you need to take.