A step-by-step guide to managing a deceased estate.
Losing a loved one is a difficult time. Aside from the emotional stress and grief this causes, it can be even more overwhelming if you’re responsible for their organising financial affairs.
If you find yourself in the position of Executor — particularly for the first time — working out where to start can be very daunting. We suggest tackling tasks in a logical, organised, and chronological order. It’s the easiest way to ensure nothing slips through the cracks and that a methodical approach is used across every aspect of the Executor role.
So, here’s our guide to managing deceased estates.
1. Get a Grant of Probate.
Issued by the Supreme Court, a Grant of Probate is a document that confirms that a will is valid and gives the Executor authority to act. The Probate ensures the Executor has the right to deal with certain assets, such as real estate and bank accounts.
Once the Probate is granted, you can redeem and collect assets, as well as pay debts and liabilities. You can also wait for the expiry of the six-month limitation period for family provision claims against the estate, and defend the will against a challenge if needed.
2. Notify service providers & payees.
The deceased individual likely has a range of service providers. This might include bank accounts, mobile plans, a driver’s license, gas and water providers, debts, superannuation funds, and much more. Start by making a list of all known providers, and do some research to ensure there aren’t any hidden away. For example, everyone has a power provider, but there might also be smaller payees such as a magazine subscription or sponsor child payments.
Notify each service provider of the person’s passing and work with the provider through the cancellation process. For banks, ensure you have a copy of the will or grant of probate. This allows the banks to release funds for funeral and estate expenses, and helps you, the Executor, open an "estate of the late" account.
Depending on time constraints, some people like to do the next step before this one.
3. Arrange the funeral.
Part of your role as Executor is to make funeral arrangements and follow any directions specified in the will. These decisions will cover things like whether the body is to be buried or cremated and where the funeral will be held. There is also the nuance of the funeral service to consider, and what family, friends, and/or co-workers you should notify about the service.
The Funeral Director of the selected funeral home will assist you in a lot of these areas (such as music options, body preparation and casket options, catering, floral arrangements, and so on), however, it’s up to you to make the final decisions — aligning with will specifications where they occur. The Funeral Director will also provide a full service including notice of death, notice of funeral and apply for the Death Certificate.
4. Engage professional support.
The insight and guidance of experts will provide peace of mind as you manage what can be an emotionally draining process. We suggest reaching out to estate planning professionals, such as a legal practitioner, as well as accountants and financial advisers.
Legal practitioners will guide you through applying for probate, legal documents, or notifying beneficiaries. At Ascent Accountants, we assist with the tax implications of disposing of assets to beneficiaries, applying for an estate tax file number, or preparing a tax return for the estate. Our financial adviser partners provide support with registry transfers, insurance payouts, and superannuation payments.
All of these tasks are difficult to manage without the proper expertise and resources. Even small mistakes can be costly later, so it’s important to get it done correctly the first time — and, a professional will also be able to orchestrate it all very efficiently.
About that professional support…
Our friendly and compassionate Ascent Accountants team will work with you and make the tax part of your Executor role as smooth as possible. This includes tax implications of disposing of assets to beneficiaries, applying for an estate tax file number, preparing a tax return for the estate, and more.
Contact us, and we’ll get started as soon as possible — keeping you in the loop throughout our partnership.
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