What is the administration of an estate?

Where the deceased person has a valid Will:

The administration of an estate (of a deceased person) is where the Executor/s named in the deceased’s Will administers the wishes of the deceased.

The Executor/s role includes:

1. Secure all assets of the deceased’s estate;

2. Arrange the funeral, in the event that the deceased has given specific wishes to the Executor that the

family is not aware of. The funeral is often arranged in conjunction with, or by the family of the

deceased;

3. Apply for a Grant of Probate, which will authorise the Executor/s to deal with the deceased’s assets;

4. Collect all assets and sell any that are not specifically gifted by the deceased in their Will;

5. Arrange any tax returns on behalf of the deceased;

6. Pay any outstanding debts owed by the deceased, using funds from the estate; and

7. Attend to the distribution of the deceased’s estate and any specific bequests (gifts) in accordance

with the terms of the Will.

The requirements of the Executor/s are extensive depending on the size or complexity of the deceased’s estate, which is why Executor/s will often engage a solicitor to ensure they are able to properly fulfil their role and obligations.

Executors also have duties to the beneficiaries, which include:

8. Communicating with beneficiaries in a timely manner;

9. Act in the beneficiaries’ best interest;

10. Keep account of all of the estate’s fees in the administration process;

11. Administer and distribute the estate in a reasonable time.

note: ‘reasonable time’ is not defined; however, the Executor/s must act as swiftly as they can. If Executor/s do not act responsibly and/or waste the estate’s money, the beneficiaries may be able to sue the Executor/s in their personal capacity for mismanaging the estate.

Once all the administrative tasks have been completed, the final part of administration is distribution of the residuary estate to the named beneficiaries. The residuary estate is all the “leftover” money, after all debts and testamentary expenses are paid. The residuary estate is distributed in accordance with the terms of the Will.

To ensure that your loved ones have an easy time with the wrapping up of your estate or if you are an elected Executor of an estate, please contact our office for information and pricing.

**This blog does not deal with intestate estates, please see our blog post on dying intestate**