An Executor’s Guide to a Deceased’s Estate Administration

by Estates Plus Finalise A Deceased Estate

Losing a friend or a loved one is a grounding experience. It is especially overwhelming for the person appointed to manage the estate in the will. That person is legally known as an executor. Their job comes with an incredible amount of trust and honor. If you’ve been appointed as an executor of a Will, it means that the deceased trusts you enough to ensure their property, assets and possessions are looked after. You will be held responsible for all the critical matters.

Before we delve into the role of an executor, let us familiarize with the concept of probate.

What is Probate?

Probate is a legal process that takes place after a person's death. The specifics of the probate process might vary by state. However, the overarching goal in most cases includes validating and authenticating the final will. This process makes sure that the debts are paid and the remaining assets are distributed to the deceased’s heirs. One thing you must know that probate is only applicable if the deceased died with a valid will.

If you are curious about probate proceedings because you have been asked to be an executor, are drafting an estate plan or are beneficiary to an estate, here is what you need to know.

How does Probate Work?

You will be responsible for applying for probate and gathering Letters of Administration if you are appointed as an executor. When a person dies, an immediate family member will need to gather any documents including the deceased's last will and testament, if there is no one to present to the probate court.

The person will then begin a probate proceeding with the court. Once the will has been authenticated, the executor or administrator is appointed and probate continues.

Should you avoid Probate?

Many people are counseled to adopt a plethora of strategies or create living trusts to avoid probate. One benefit of avoiding probate is that a living trust allows assets in the trust to be transferred to the beneficiaries after death. There might even be fewer forms to file.

However, avoiding probate does not mean you avoid paying taxes or probate fees.

So, the real question that arises is, "Why go through Probate?"

And the answer is as simple; it validates the authenticity of the will. The probate court oversees the actions of the administrator or executor, and puts a time limit on creditor claims.  

Here is a list of tips that can help you manage a deceased’s estate effectively.

·         Understand your role, responsibilities and rights as an executor

If you are appointed as an executor of a Will in Australia, you must be aware of your role and responsibilities. You are responsible for managing the deceased’s estate and assets. You might even be required to make decisions around selling real estate or properties owned by the estate. Taking care of safety deposit boxes or valuables in safes at the house might be a significant part of your job as well.

The executor of an estate takes the lead in resolving the deceased's remaining business.  You have a high chance of having sentimental responsibilities, like sorting through the deceased’s belongings that hold emotional value to them.  The legal role and responsibilities includes making sure the homeowner's policy is paid, or maintenance is done on the home.

·         Obtain the death certificate

This should be the first step of the proceedings.  The executor of an estate is responsible for funeral and burial arrangements out of the estate.  Additionally, the funeral home will ask how many copies of the death certificate are needed.  You will require those copies when notifying banks, life insurers, investment firms and when filing the deceased’s final tax returns.

·         Seek professional advice

Dealing with a deceased’s estate can be overwhelming.  So, if you are appointed as an executor of an estate in Australia, consider seeking professional advice to help you wade through the legal process without any hassle.  An attorney or a legal team can advise you on the legal steps and help answer questions from beneficiaries who might be pushing for the quick distribution of assets.  The attorney will know the right forms to fill out to make the process smoother for you.  It will take longer if you manage it yourself.

·         File Letters of Testamentary

If the estate must go through probate, the probate court will legally confirm your appointment as executor with Letters of Administration, or Letters of Testamentary.  These are certified documents that prove you have the legal authority to act on behalf of the estate to start filing tax returns, paying bills, dealing with beneficiaries, managing and distributing assets, and opening or closing bank accounts.

We hope that this guide helps you wade through the process of managing a deceased’s estate without any hassle. 

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Created on Sep 30th 2020 06:36. Viewed 263 times.

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