Estate Administration Lawyers Sydney, NSW

What is Estate Administration?

Estate Administration is the legal process of managing a deceased person’s assets and liabilities. It involves identifying and collecting assets, paying debts, and distributing the remaining estate to the rightful beneficiaries.

Who is responsible for administering an estate?

The person responsible is known as the ‘personal representative’. This is either the Executor named in a Will or an Administrator appointed by the court if there is no Will.

Is Estate Administration different from Probate?

Yes. Probate is the court process of validating a Will and authorising the Executor. Estate Administration is the entire process of managing and finalising the estate, which takes place after a Grant of Probate or Letters of Administration is issued.

What are the main duties of an Executor or Administrator?

The main duties include identifying and collecting all estate assets, paying the deceased’s debts and taxes, protecting the assets from loss, keeping accurate financial records, and distributing the estate to the beneficiaries.

When can I start administering the estate?

You can only begin to deal with significant assets once you have received the formal Grant of Probate or Letters of Administration from the Supreme Court, as this is your legal authority to act.

Do I have to pay the deceased’s debts personally?

No. An Executor or Administrator is not personally liable for the deceased’s debts. All legitimate debts, taxes, and funeral expenses are paid from the assets of the estate itself.

How long does Estate Administration take?

The time varies greatly depending on the complexity of the estate. A simple estate might be administered within a few months after the grant, while complex estates with disputes or businesses can take a year or more.

When can I distribute the estate to the beneficiaries?

In NSW, you must wait a certain period after publishing relevant legal notices (usually at least 6 months from the date of death) to allow any potential creditors or claimants to come forward. Distributing the estate too early can create personal liability.

How do I manage the estate’s finances?

It is best practice for the Executor/Administrator to open a new bank account in the name of the estate. All estate funds should be deposited into this account, and all debts and distributions should be paid from it to ensure clear record-keeping.

Do I need to lodge a final tax return for the deceased?

Yes. As the personal representative, you are responsible for lodging a final personal tax return for the deceased, covering the period up to their date of death. You may also need to lodge tax returns for the estate if it earns income.

How are assets like property transferred to beneficiaries?

With the Grant of Probate or Letters of Administration, a lawyer can prepare the necessary documents to transfer the title of real estate from the deceased’s name to the name of the beneficiary or a purchaser if it’s sold.

What if I can’t find a beneficiary?

You have a legal duty to make all reasonable and thorough efforts to locate any missing beneficiaries. If they cannot be found, you may need to seek formal directions from the Supreme Court on how to handle their share.

What is an ‘inventory of property’?

This is a detailed list of all the assets and liabilities of the deceased’s estate that is prepared for the initial court application (Probate or Letters of Administration). It becomes the foundational checklist for the administration process.

Do I need a lawyer for Estate Administration?

While not legally mandatory, engaging a lawyer is highly recommended. Estate administration is a complex legal process. A lawyer ensures you meet all your legal duties, protects you from personal liability, and helps you navigate any complexities or disputes that arise.

What if a dispute arises between beneficiaries during administration?

As the Executor or Administrator, you must remain impartial and not take sides. Your lawyer can help manage the dispute, often through mediation, to reach a fair and lawful resolution in the best interests of the estate.

What are ‘secured’ vs. ‘unsecured’ debts?

Secured debts are tied to a specific asset, like a mortgage on a house. Unsecured debts, like credit card bills, are not. There is a specific legal order in which debts must be paid from the estate.

What happens after all assets are distributed?

Once all debts are paid and all distributions are made, the estate can be finalised. This typically involves preparing final accounts, providing them to beneficiaries, and formally closing the estate bank account.

Can beneficiaries challenge the administration process?

Yes. Beneficiaries can raise concerns if they believe the Executor/Administrator is not acting properly or is failing to meet their duties. If issues can’t be resolve