Understanding the Role of an Executor in Estate Administration. What does an Executor Do?

Understanding the Role of an Executor in Estate Administration.

What does an Executor Do?

When someone makes a Will, they need to appoint an executor. Sometimes they appoint two people to be executors. I am often asked - what exactly does an executor do?

The executor of a Will is responsible for carrying out the wishes of the deceased. They must act within the terms of the Will and must also comply with various laws and rules that govern the administration of deceased estates.

Executors have a duty to act in the best interest of the estate and its beneficiaries.

There are many tasks that need to be done when someone passes. Many of these are attended to by the executors and sometimes with assistance from an estate/probate lawyer.

Organising the Funeral, Locating the Original Will & Death Certificate.

While family members and next of kin may assist in this process, ultimately it is the executor who has the final decision about the funeral arrangements. If there is a dispute about these things, the executor/s will make the final decision. 

It is important to nominate someone to be your executor, who you are comfortable to follow your wishes for the funeral and the selection of either burial or cremation.

Probate Application

Probate requires following a process where an application is made to the court whereby the court confirms the legal validity of the deceased’s will. Probate also confirms the will as ‘the last will’ of the deceased and grants the executor the legal authority to administer the estate.

If it is necessary to obtain a Grant of Probate (this can depend on the value and circumstances of the estate's assets) this typically marks the first step an executor takes in administering the estate. Once Probate has completed, the estate is ready for asset holders to release the assets to the estate.

Assets Management & Protection

Executors need to identify and safeguard the deceased's assets (such as ensuring cars and houses are locked and secure) and close the deceased’s accounts.

They will oversee property, bank accounts, motor vehicles, investments, personal and household belongings, pets, life insurance and superannuation. They will need to notify government authorities such as Centrelink and the electoral roll.

They ensure assets are secure and properly accounted for during the estate administration process. They locate important documents, store items securely so they don’t get damaged, lost or stolen, obtain insurance and valuations, organise repairs and maintenance of property if required. They arrange to rent out property if the estate is going to take a while to finalise, and then arrange for the sale of assets as necessary.

They are required to keep records including invoices and receipts and a list of assets and liabilities. They must keep their own property separate from the estate assets, open an estate bank account for transparent record-keeping, manage investments and businesses, invest estate funds if the estate administration is likely to take more than 12 months etc. They may also be required to deal with any real estate that is part of the estate, including preparing property for sale.

Debt/Liability Settlement

Before distributing the estate, executors must address any debts or financial obligations of the deceased. This might include paying off loans, credit card balances, and other liabilities. Executors also settle any outstanding taxes, such as income tax to the date of death or income tax charged to the estate after the date of death, and ensuring compliance with legal requirements.

Defending the Will if Contested & Communicating with Beneficiaries

Executors act as the liaison between the beneficiaries of the will and the legal process in relation to the estate administration.

Executors must maintain clear and transparent communication with beneficiaries named in the will. They inform beneficiaries of their entitlements and provide updates on the estate's progress, keeping them informed throughout the administration process.

Executors must also defend the Will if it is challenged by any family members or dependents or anyone else (ie. the executor is responsible for resolving estate issues, liabilities and disputes).

Executors are also responsible for resolving disputes between beneficiaries.

Distribution of Assets

The final task of an executor will be to carry out the distribution of assets to the beneficiaries nominated in the will, as per the provisions of the Will.

This may involve setting up trusts to hold some beneficiary’s inheritances until they reach a certain age. (eg. children that are still minors may not receive their inheritance until they are at least 18 years). Executors attend to transferring property titles, transferring registrations, issuing funds, or delivering personal and household items.

If the will doesn’t specify who is to receive personal and household items, the executors will need to value items and decide which beneficiaries named in the will receive certain items as part of their share of the estate.