Losing a loved one is an emotional journey, a bitter pill to swallow. Nevertheless, obligations exist, like the responsibility of managing a deceased estate. The processes can appear intimidating due to the intertwining nature of legal and administrative tasks. However, fear not. By following an organised approach and utilising guidance where necessary, you can streamline the process. This thoroughly detailed deceased estate checklist serves as a key tool for executors and beneficiaries to help ensure the deceased’s wishes are honoured with care.
Assembling Essential Documentation
The first step in managing an estate involves gathering relevant documents. This step, fundamental in nature, is of utmost importance as it maps the financial trail and the last wishes of the departed. The documents you’ll typically need include:
- The Will: a document containing the deceased’s distribution plans for their estate.
- A death certificate: an official record required by several organisations for validation.
- Bank statements: to understand the deceased’s financial standing and identify any pending debts or assets.
- Investment accounts: such as stocks, bonds, and mutual funds, forming part of the financial profile to be handled.
- Title search: crucial in identifying real estate owned by the deceased.
- Insurance policies: including life insurance, health insurance, and other types that could affect the estate’s financial standing.
A thorough collection of these documents lays the foundation for valuing the estate and identifying any debts that need settling.
Informing Associated Parties
With the necessary documentation in hand, the next step involves notifying entities associated with the deceased. This process involves reaching out to several areas of the deceased’s life, such as:
- Banks and credit unions where the deceased held accounts or safe deposit boxes.
- Issuers of credit cards to stop additional charges and handle outstanding balances.
- Superannuation or insurance companies to initiate claims and determine any benefits or refunds due to the estate.
- Utility and service providers to halt billing and prevent accumulating charges.
- Government bodies, such as Centrelink and the Australian Taxation Office (ATO), to cease payments or assess entitlements.
These notifications serve to prevent fraudulent activities and pave the way for the resolution of the deceased’s financial matters.
Working with Banks to Close Accounts
One of the common steps in managing a deceased estate is working with banks to close accounts and obtain funds. Financial institutions such as Commonwealth Bank or NAB typically require several forms to process account closures. Executors may need to provide:
- A certified copy of the death certificate.
- A copy of the Will (if applicable) or a grant of probate.
- Identification for the executor or administrator.
- A completed bank-specific deceased estate form.
These forms vary between banks but generally include details about the executor’s authority, the account types held, and instructions on disbursing funds. The process can take several weeks, depending on the bank’s requirements and any pending liabilities or direct debits linked to the accounts.
Protecting the Deceased’s Property
The importance of securing the deceased’s property cannot be understated. It ensures the safety of their belongings and estate. Consider these steps:
- Changing the locks of the deceased’s residence to maintain access for authorised individuals only.
- Securing valuable items, such as jewellery or antiques, in a safety deposit box or a locked storage facility.
- Informing neighbours and local law enforcement to monitor the property, particularly if it will be vacant.
These measures help deter potential theft or damage, thereby preserving the estate’s asset value.
Engaging an Accountant
It is important to engage an accountant when managing a deceased estate, as there may be outstanding tax obligations. The accountant can assist in lodging a final tax return for the deceased and addressing any pending tax liabilities with the ATO. This ensures that all tax matters are resolved before distributing the estate, helping avoid penalties and ensuring compliance with Australian tax laws.
Applying for Probate
Obtaining probate is often a required legal step when dealing with a deceased estate, especially when a Will is involved. The complexities of this process include:
- Probate is a judicial process where a Will is authenticated, and the executor is officially recognised to manage the estate.
- This process involves presenting the Will and death certificate to court and possibly attending hearings.
- If the estate is challenged, the process can become more complex, potentially needing legal representation and additional court visits.
Due to the specific nature of obtaining probate, it is often recommended to seek the help of a legal expert. Jacaranda Law offers free initial consultations – click here to make an appointment and discuss the process.
Settling Remaining Debts
Before dividing the estate, it is the executor’s duty to clear any remaining debts linked to the deceased. These may include:
- Outstanding credit card debts or personal loans, to prevent interest accumulation.
- Pending mortgage or car loan payments that could affect major assets.
- Medical bills, often a significant portion of the debts to be cleared.
Clearing these debts ensures that the estate is divided fairly and in accordance with the deceased’s wishes.
Executor Commission
Executors are not automatically entitled to payment for their work. However, they can receive commission for their services in some circumstances. This commission may be granted either by agreement with the beneficiaries or through a court order. The amount of commission is typically based on factors such as the complexity of the estate, the time spent managing the estate, and the executor’s conduct. It is advisable to seek legal advice if you are considering applying for commission to ensure the process is handled correctly.
Allocating Assets to Beneficiaries
The distribution of assets marks the conclusion of the executor’s duties, where beneficiaries receive their allocations as designated by the deceased. This process could involve:
- Transferring property titles to rightful heirs or selling the property as mandated by the Will.
- Dividing funds from investment accounts and dispersing them according to the deceased’s allocations.
- Bequeathing personal belongings, heirlooms, and other specified items to designated individuals.
Meticulous record-keeping and adherence to the Will’s directives are required during this stage, ensuring transparency and fairness in asset distribution.
Resolving Remaining Legal and Financial Issues
After allocating all assets and reconciling debts, finalising the remaining legal and financial matters is essential. This stage involves:
- Closing any active accounts that the deceased held, whether they be bank accounts, credit cards, or subscriptions.
- Terminating memberships or services that are no longer required, such as gym memberships or club associations.
- Reporting to the ATO to address any pending tax matters and to file a final tax return on behalf of the deceased.
These concluding actions ensure the thorough management of the deceased’s estate and the fulfillment of their last wishes.
Final Thoughts
Managing a deceased estate is a time consuming process, requiring meticulous attention to detail and a methodical approach. The executor has many duties and obligations and in some cases they can be held personally accountable if things go wrong. By adhering to this checklist and seeking professional advice when necessary, you can ensure the estate is managed effectively and in accordance with legal requirements. The journey may be challenging, but remember to progress methodically, maintain thorough documentation, and lean on the support of family and friends during this difficult time.
If you would like to discuss an estate administration matter with an experienced lawyer, please do not hesitate to make a free appointment with Jacaranda Law.
The information provided in the document is a general summary and is not intended to be nor should it be relied upon as a substitute for legal or other professional advice. You should make an appointment with Jacaranda Law to recieve appropriate tailored advice for your specific situation.
