7 Common Mistakes Executors Make and How to Avoid Them
Under Queensland’s Laws & Regulations, being appointed as the executor of a deceased estate is a significant responsibility and, often, an emotionally charged one. They must ensure the wishes expressed in a Will are legally and efficiently carried out. Still, many well-meaning executors unknowingly make mistakes that can lead to unnecessary delays, disputes, and even personal liability. These mistakes usually occur when the executor of the Will is not equipped with the right information.
At Bradley & Bray, we take charge of supporting all clients across Queensland to deal with the complexities of estate administration. For starters, here are seven of the most common executor mistakes and several expert tips on how to avoid them.
Exactly What Does an Executor of a Will Do?
As an executor, it is your responsibility to ensure the lawful and fair administration of a deceased person’s estate. However, the role goes far beyond simply handing out assets to the beneficiaries. In Queensland, it involves legal, financial, and personal responsibility in preparing and processing documents, collecting all estate assets and paying estate debts, before finally distributing the assets in accordance with the Will. When you’re navigating probate, addressing complex family dynamics, or resolving estate liabilities, professional guidance can be the key to achieving the desired outcome while adhering to the relevant laws.
Common Executors’ Mistakes to Steer Clear of
1. Delaying the Administration Process
One of the earliest and most common mistakes that many executors make is delaying action after their loved one passes away. While it’s natural to take your time grieving, significant delays in starting the estate administration can lead to complications.
As the executor of a Will, you should:
● Locate and review the original Will
● Arrange the funeral (if not already handled)
● Begin identifying estate assets and debts
● Securing the assets, if required
● Determine whether probate is required
That’s why reaching out to the Bradley and Bray estate team as soon as possible will help you understand the obligations and begin the process without delay. Our compassionate succession team are based in Queensland and are here to guide you so that you can navigate the legal requirements without additional stress.
2. Distributing the Estate Too Early
Premature distribution is a major risk. The executor of a deceased estate can be held personally liable in certain circumstances. These include, but are not limited to, outstanding debts, tax obligations, and family provision claims (commonly known as contesting the will - but note that legislative timeframes apply). This is why it’s important to follow the required processes and wait for relevant deadlines to pass.
Other common distribution-related mistakes include:
● Distributing the estate before the legislated timeframe for a person to make a family provision claim has expired
● Ignoring notices from creditors and not waiting until the statutory period after publishing a notice to creditors
● Failing to seek financial advice regarding tax obligations before distribution
3. Mixing Estate and Personal Finances
Executors must not use estate funds for personal expenses or mixed finances. Doing so can result in a breach of fiduciary duty and expose the executor to personal liability.
Here are some mistakes you should avoid:
● Using the estate to pay for non-estate expenses
● Reimbursing yourself or others for genuine estate expenses without receipts
● Paying beneficiaries early
● Failing to keep adequate records of expenses
Asset holders will only pay into an estate bank account, therefore a separate account will need to be set up. Note that your solicitor is able to use their trust account for incoming and outgoing estate transactions. If you’re uncertain, then reach out to our friendly team to stay informed about your obligations about this aspect of managing the estate process.
4. Misunderstanding Executor Duties
Executors are legally responsible for managing the deceased’s estate. However, many of them don’t fully understand their role until they’re already facing problems.
The responsibilities of an executor of an estate include:
● Determining whether applying for probate is necessary
● Identifying, securing and collecting all estate assets
● Organising for payment of the estate’s debts and taxes
● Distributing the estate in accordance with the Will
● Meeting legal obligations under the Succession Act 1981 (QLD)
To avoid misunderstanding your duties and responsibilities as an executor, you should consult with us at the beginning of the estate administration process. At Bradley & Bray, it’s our priority to guide executors through each step with clarity and care. Browse through our Succession FAQs to help prepare everything you need and ensure an easy and smooth estate administration process.
5. Not Applying for Probate When Required
In Queensland, probate is often necessary when:
· Real property (e.g., a house) is involved
· If banks or financial institutions require it before releasing funds
· Where there is a refundable accommodation deposit
· The deceased had superannuation benefits
Skipping this step can delay estate administration or cause compliance issues. Consult with succession lawyers if you’re unsure whether probate is needed. They can also prepare and lodge applications with the Supreme Court of Queensland on your behalf.
6. Overlooking Tax and Legal Compliance
Executors are required to manage:
● Final tax returns for the deceased
● Tax obligations of the estate
● Superannuation death benefit implications
● Compliance with legal timeframes and reporting
Failure to meet these obligations can result in ATO penalties or disputes with beneficiaries. At Bradley & Bray, we can collaborate with your accountants and financial advisors to ensure the estate is managed according to relevant legislation to finalise the taxation obligations of the deceased and their estate.
7. Failing to Communicate with Beneficiaries
Many executors underestimate the importance of regular, transparent communication. Executors’ duties to beneficiaries include keeping them informed and acting in their best interests.
Poor communication can be confusing for beneficiaries, cause conflict and damage relationships, and can sometimes result in legal claims, or in some instances an executor being removed. The best way you can avoid this is by keeping beneficiaries updated on expected timeframes, progress of asset collection, delays encountered and when they should expect to receive their distribution. Maintaining clear communication will help avoid misunderstandings during the estate administration process.
Bradley & Bray Guides You Through
If you’ve been named an executor and feel unsure about your next step, you’re not alone. Our experienced estate lawyers help clients throughout Queensland carry out their executor duties efficiently and in accordance with legislative requirements. Contact us today to arrange a consultation and receive step-by-step support tailored to your situation.
Disclaimer: This article is general in nature and does not constitute legal advice. If you require legal advice in relation to your personal circumstances, you must formally engage our firm or another firm to provide legal advice in relation to your matter. Bradley & Bray lawyers take no responsibility for any use of the information provided in this article.
