Executors play a vital role in ensuring the efficient and responsible administration of an estate. However, beneficiaries often express concerns about potential breaches of duty by executors, while executors themselves may feel uncertain about their obligations.
Understanding the duties and obligations of executors is essential for ensuring compliance and resolving any issues that may arise during estate administration.
The duties of executors encompass various responsibilities, including but not limited to the following:
- Identifying the assets and liabilities of the estate and their value
Executors are tasked with identifying and taking control of all assets and liabilities of the deceased’s estate, including bank accounts, real estate, investments, digital assets and debts. Obtaining valuations for certain assets ensures an accurate assessment of the estate’s value.
- Probate Application
Obtaining a grant of probate is often the first step for executors in administering an estate. Probate is a court order confirming the validity of the will and the executor’s authority to act on behalf of the deceased. The executors must apply to the Supreme Court of NSW for probate, providing necessary documents and information.
- Payments of Debts and Expenses
Executors are responsible for paying the deceased’s outstanding debts, taxes, funeral expenses, and administrative costs of estate administration. This may involve selling assets or using estate funds to settle debts.
- Record Keeping
Executors are required to maintain accurate records of all estate transactions, including income, expenses, distributions, and correspondence.
- Acting in the best interests of the estate
Executors have a fiduciary duty to act impartially and in the best interests of the estate and its beneficiaries. This includes making decisions that maximise the value of the estate, avoiding conflicts of interest, and treating all beneficiaries fairly and equally.
- Asset distribution
Executors must distribute the assets of the estate in accordance with the terms of the will after all the debts and expenses have been paid. The executor can finalise the estate administration process by preparing a statement of distribution and obtaining releases from beneficiaries, confirming their receipt of their respective legacies.
If you are an executor in need of guidance or a beneficiary with concerns about executor duties, our Wills and Estate team in Sydney is here to assist you. Contact us for advice and support in navigating the complexities of estate administration.
