The death of a loved one is hard enough to cope with, but it can be even more confronting when you are dealing with their estate.
In Australia, the process of managing a deceased person’s estate is quite involved, and if you are not familiar with it, you can easily find it overwhelming.
From obtaining a death certificate to distributing assets, there is a lot to organise. So, it is advisable to seek professional assistance from a lawyer to help you through it.
However, to give you an idea of what needs doing, in this guide, we’ll highlight some of the main steps that should be completed.
Hopefully, by the time you’ve read it, you will have a greater understanding of what your responsibilities are.
1. Obtain the Death Certificate
When dealing with a deceased person’s estate, one of the first things you will need to do is obtain a death certificate.
This official document is issued by the Registry of Births, Deaths, and Marriages within your state and territory, and while it can be a difficult thing to do from an emotional perspective if you are struggling with the loss or loneliness of a loved one, it is necessary to confirm an individual’s proof of death.
The reason you will need to do this is because it is required for most of the ensuing legal and financial matters you will have to deal with in relation to the deceased estate.
2. Notify Financial Institutions and Government Agencies
As soon as you receive the death certificate, it is important to notify banks, insurance companies, and government agencies (like Centrelink) of the passing of the individual.
By doing this, you will ensure that accounts are closed or transferred appropriately. Additionally, any ongoing payments, such as pensions, will also be stopped or redirected.
3. Locate the Will
If the deceased person left a will, it should outline how they wanted their assets to be distributed. Typically, the will names an executor, who is the person responsible for managing the estate. If that happens to be you, then it’s your duty to make sure that the deceased’s wishes are carried out to the letter in accordance with the law.
However, if they did not leave a will, then the person is considered to have died intestate, which means the estate will be distributed according to the intestacy laws of the relevant state or territory.
In layman’s terms, this usually means the assets go to immediate nuclear family members or the closest relatives.
4. Apply for Probate or Letters of Administration
If you are the executor of the deceased person’s estate, you will need to enter Probate, which is the legal process for validating the deceased’s will.
As the executor, you’ll have to apply for a Grant of Probate from the Supreme Court in the state or territory where the deceased person lived. Once this documented status has been granted, you have the legal authority to manage and distribute the estate.
However, if the will was left by the dearly departed, you’ll need, instead, to apply for Letters of Administration should you want to assume the role of executor. Essentially, this is similar to Probate, but it is granted to the next of kin or another eligible person.
5. Identify and Value the Assets
Another thing you will need to do as executor is to identify all the assets owned by the deceased individual. This could include property, bank accounts, investments, and personal belongings.
For significant assets, such as real estate, stocks and shares or valuable collections, you may need to obtain current valuations from qualified professionals.
Overall, this is an important step as it confirms the total value of the estate, which facilitates a much fairer distribution among the estate’s beneficiaries.
6. Pay Debts and Taxes
Before you can look at distributing the deceased person’s estate, you may be required to pay off any outstanding debts they had or taxes owed from it.
Often, this can include their mortgage, credit card balances, utility bills, and any final tax returns. As you are the executor, it is your responsibility to meet these obligations. Otherwise, you could face severe legal consequences.
7. Distribute the Estate
Having settled all the debts and paid off the taxes, you can start the process of distributing the remaining assets to the beneficiaries.
As mentioned previously, this should be in accordance with intestacy laws and as outlined by the instruction of the deceased person’s will.
This process can involve transferring property titles, liquidating assets and handing over personal belongings or selling equities like stocks and shares. If the deceased owned shares, then you’ll need to learn about selling shares from a deceased estate in Australia.
8. Keep Records and Communicate
Lastly, throughout the process, it’s important to keep detailed records of all transactions and communications that have taken place.
By doing this, you’ll create transparency that helps to prevent disputes from arising among beneficiaries.
Subsequently, you should keep all receipts and invoices, as it showcases that you, as the executor, can provide a clear account of how the deceased estate was managed, should you ever be challenged.
