Administration of an Estate
When a loved one dies, there is always uncertainty surrounding what to do next. In such an emotional time, it is important to have some clear guidance to help answer a number of questions you may have.
These questions are the most commonly asked questions from our clients who seek our help to administer an Estate.
Q Who organises the funeral?
A
If a Will has been found and read before the funeral is organised, it is the Executor's responsibility to orgainse the funeral. In most circumstances the funeral is organised by the closest surviving next of kin before the Will is read but if there are any arguments about the funeral, the Executor has the right to make the final decision.
Q Who pays for the funeral?
A
You will need to discuss this with the funeral home however if there is any money in the deceased's bank accounts, the bank will pay the funeral tax invoice but otherwise the deceased's accounts will be frozen. If there are insufficient funds in the Deceased's bank accounts then the responsibility for payment will usually fall to the person who organises the funeral. If someone pays the funeral bill, they are entitled to be re-imbursed from the Estate for that money before payment to any beneficiaries is made.
Q What does a Will do?
A
A Will deals with all assets which are held in the Deceased's name as at the date of his or her death. A Will does not deal with other assets of the Deceased's such as superannuation or life insurance. It is important to look at each of these assets to determine who will receive them upon the Deceased's death.
Q What does an Executor do?
A
An Executor's job is to collect the Estate assets, pay the Estate debts and then to distribute the Estate in accordance with the terms of the Will. Sometimes the Executor will be required to defend the Estate from various claims from either debtors of the Deceased person or from the Deceased’s family members. The Executor's job in those circumstances is to uphold the terms of the Will and to maxmise the value of the Estate.
Q What if there is no Will?
A
If the Deceased died without making a Will it means they died “intestate.” In an Intestate Estate, the Estate will be distributed in accordance with the laws of intestacy and the Succession Act determines whom can act to administer the Estate.
Q What is a Grant of Probate?
A
A Grant of Probate is a document which issues from the Supreme Court. Obtaining a Grant of Probate offers protection for an Executor. Some banks and financial institutions will require an Executor to obtain the Grant of Probate before they will close the Deceased's bank accounts and pay the funds to the Estate.
Q Who pays for the Lawyer?
A
If an Executor engages a lawyer to assist with the administration of the Estate, all legal fees are payable from the Estate.