What is an estate ?

A deceased’s estate includes assets held in their name or held in trust for them. All debts must be deducted from the assets, for example money owed to Australian Taxation Office or owing on a mortgage.
Some assets do not form part of a deceased’s estate. These include superannuation entitlements or property held in joint names. More on that later….

Managing an estate

Many steps are involved in managing an estate. It is the executor’s responsibility to ensure that this is done as quickly and efficiently as possible. Steps include:

Obtaining a death certificate

Funeral directors are usually responsible for registering the death within seven days of the burial or cremation. If the funeral director has not already done so, the executor will need to obtain a death certificate from the Registry of Births Deaths and Marriages in the state where the person died. The NSW Registry of Births Deaths and Marriages records all deaths that occur in this state.

Probate

This is when the Supreme Court approves a Will and advises the executor of the Will that everything is in order. The Court checks that the person who wrote the Will did not include unreasonable demands and that it has been signed and witnessed correctly.
Not all Wills require probate. Fox example, small estates may not. Usually, probate is required when an estate consists of specific types of assets (e.g. shares, large amounts of cash, property).
YourVeritas Legal lawyer will explain whether probate is required.

Making a register of assets and liabilities

The executor must make a register of assets and liabilities (debts).

Assets include:

• property
• cash
• motor vehicles
• shares
• managed fund investments
• Australian Taxation Office refunds
• shares in a business
• life insurance policies
• household goods
• personal effects.

Liabilities can include:

• money owed to a financial institution (mortgage, personal loan, credit card)
• sums payable to the Australian Taxation Office
• liabilities of a business (e.g. rental payments, interest on the business suppliers accounts).

Remember, some assets do not form part of a deceased’s estate and they include:

• superannuation entitlements - the name of the person receiving these entitlements is usually noted in the superannuation documentation, otherwise the superannuation fund trustee normally allocates the funds to the next of kin or to the deceased’s dependents
• property held in joint names - if a property is held in joint names, the surviving party will receive title to the property.

Calling on assets

Once all assets and liabilities have been identified, and probate has been granted, the executor must call on assets and prepare to distribute them to beneficiaries. Calling on assets may include:

transferring a property to a beneficiary
selling properties owned by the deceased - to do this, the executor may need to change the registration of the property from the deceased to him/her as executor
selling or transferring shares - share registries must be advised that the shareholder has died and advised what to do with the shares, perhaps to be sold or transferred to a beneficiary
closing bank accounts and transferring funds, either to the beneficiaries or to be held in trust by the executor.
Organisations administering transfer and sale of these assets will often require probate and/or a certified copy of the Will and a death certificate.

Distributing assets

Following the sale of certain assets, such as property, the executor will have an accurate picture of the deceased’s total estate assets.
In calculating the total assets for distribution, the executor must make sure that all liabilities and expenses associated with the death and the management of the estate (e.g. funeral, real estate agent and legal fees) are taken into consideration.
Assets can then be distributed to the beneficiaries.|

Managing disputes

Unfortunately, sometimes there are disputes about the Wills.
Someone who has been left out of a Will may challenge it, or a beneficiary may be unhappy about their share of their estate. In these circumstances, it is important that the executor consults their Veritas Legal lawyer immediately to resolve the dispute as quickly and efficiently as possible.

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