Executors often feel pressure to move quickly.
Beneficiaries may want updates. Someone may be waiting for money. A house may need to be sold. Bills may need to be paid. Family members may keep asking when the estate will be distributed.
That pressure is understandable.
But distributing an estate too quickly can create real problems.
Probate is the process where the Supreme Court of Victoria confirms the authority of the executor to deal with the estate. If there is no valid will, or the named executor cannot act, a different process may be needed.
Once an executor has authority, the work is not finished.
The executor still needs to identify assets, pay debts, deal with tax issues, communicate with beneficiaries, keep records and consider whether there may be any claims against the estate.
Common issues include:
- Funeral expenses
- Mortgage or property costs
- Insurance
- Council rates
- Tax issues
- Estate debts
- Missing bank accounts
- Superannuation or life insurance questions
- Beneficiaries asking for early payment
- A possible estate dispute
- A family provision claim
- Disagreement about selling property
One of the biggest risks is distributing money before the estate position is clear.
For example, an executor may pay beneficiaries early, then later discover a debt, tax issue or possible claim. If the money has already gone, fixing the problem may become difficult.
Communication is also important.
Many estate disputes become worse because beneficiaries feel ignored. Sometimes a short update is enough to reduce suspicion. If people do not know what is happening, they may assume something is wrong.
That does not mean an executor should give in to every demand. It means the executor should keep a clear record and communicate carefully.
A practical early checklist may include:
- Locate the latest will
- Confirm whether probate is required
- Identify estate assets and debts
- Check property, bank and tax records
- Keep estate money separate
- Avoid mixing personal money with estate money
- Keep written records of decisions
- Consider whether anyone may make a claim
- Get advice before distributing if there is risk
Executors should also be careful where there is a blended family.
A second spouse, children from an earlier relationship, stepchildren, estranged family members or unequal gifts in the will can all increase the chance of a dispute.
The executor’s role is not to take sides. The role is to administer the estate properly.
If there is a dispute, the executor may need advice before taking the next step. This is especially important if someone is threatening to challenge the will, asking for more provision, or accusing the executor of delay or unfair conduct.
At Scherini Lawyers, clients trust us to help with probate, estate administration, executor issues and disputes that arise before an estate is distributed.
Call 03 9961 3149 or email info@scherinilawyers.com.au.
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