Efficiently Managing a Deceased Estate in Queensland
Administering a deceased estate is an important responsibility that requires diligence, care, and a strong understanding of legal obligations. Whether you are an executor, administrator, or a family member seeking clarity, understanding the estate administration process is essential to ensuring a timely and lawful resolution. In Queensland, several rules govern how a deceased estate is managed, what expenses can be claimed, and how to know when the estate is fully administered.
Efficient Estate Management Starts with the Will
The first step in managing an estate is to confirm whether your loved one left a valid will. A will is a legal document that outlines how the deceased wanted their assets distributed and who they chose to carry out those wishes (the executor). If a will exists, the named executor has the legal authority and duty to manage the estate.
If there's no will, the estate is considered intestate, and things become a little more complex. In this case, someone, usually the next of kin, such as a spouse or adult child, must apply to the Supreme Court of Queensland for a legal document called Letters of Administration. This document gives them the same powers as an executor, but the estate will then be distributed according to a legal formula under the Succession Act 1981 (Qld) rather than the deceased's wishes.
Initial responsibilities of the executor or administrator include:
Locating the original will (if it exists):
This might be stored at your loved one's home, with their solicitor, or at their bank. You'll need the original to apply for probate, as copies are not accepted.
Notifying beneficiaries and relevant institutions:
This includes informing banks, super funds, insurance providers, Centrelink, and any other financial institutions that the person has passed away.
Applying for Probate or Letters of Administration (if required):
Probate is the Supreme Court's official recognition of the executor's authority and the will's validity. Letters of Administration serve the same purpose in cases where no will exists. These documents are often required before banks or other organisations will release funds or allow the transfer or sale of assets. If you're unsure if Probate or Letters of Administration are needed, it's a good idea to seek legal advice.
Identifying and protecting the estate's assets:
This includes locating and securing any property, vehicles, valuables, or financial assets. You may need to arrange insurance, change locks, redirect mail, or cancel recurring payments to prevent losses. Protecting the estate early helps reduce the risk of theft, damage, or unnecessary expenses.
Getting on top of these tasks early and keeping thorough records of every action you take sets the foundation for smooth, efficient administration. It can also reduce delays, avoid disputes, and help ensure the estate is finalised without unnecessary stress or cost.
What Expenses Can Be Claimed From the Deceased Estate?
Being an executor of a will can come with costs, so you might be wondering what expenses can legally be reimbursed from the estate. In Queensland, the following are commonly claimable:
Funeral and Burial Expenses
Reasonable costs, including the funeral service, burial or cremation, are generally paid from estate funds. The bank should still be able to release funds to the executor while the account is frozen. You will need to provide the bank with a receipt or invoice for the funeral or burial fees.
Debts and Liabilities
The estate must pay all outstanding debts of the deceased, including:
Credit card debts
Utility bills
Personal loans
ATO liabilities
If debts exceed assets, legal advice is essential before distributing any funds.
Administration Costs
Executors can claim for reasonable out-of-pocket costs involved in managing the estate, such as:
Legal and accounting fees
Court filing fees for probate/administration applications
Travel, including things like Uber and taxi fares, as well as international travel when required to sort out affairs
Property maintenance and insurance premiums while the estate is being finalised
Executors are not automatically entitled to payment for their time unless the will specifies a commission or an application is made to the court.
Ongoing Costs
If estate administration takes time, the estate may also cover costs such as:
Real estate agent fees (for selling estate property)
Rates and land tax
Investment management fees (if shares or other assets are involved)
Transparency is vital. It's important to keep clear records and receipts for all expenses when looking to claim a reimbursement from the estate.
When Is a Deceased Estate Fully Administered?
An estate is considered fully administered when:
All Assets Have Been Identified, Collected, and Either Sold or Distributed
The first essential step in the administration of an estate is to gather all the deceased's assets, which could range from real estate and bank accounts to personal items like jewellery or artwork. Once these assets are identified, the executor will either distribute them directly to the beneficiaries or, if necessary, sell them to convert them into cash to be distributed. For example, family heirlooms may go to specific relatives, while any investment property or shares may need to be liquidated to divide the proceeds amongst beneficiaries.
All Liabilities and Expenses Have Been Paid
The executor is responsible for settling any outstanding debts or expenses before the beneficiaries can receive their inheritance. This includes paying any final bills, such as medical expenses, funeral costs, outstanding loans, or credit card debts. It's essential to be thorough when identifying all liabilities and ensure that no outstanding debts are overlooked, as failing to do so could create personal liability for the executor.
Final Tax Returns for the Deceased and the Estate Have Been Lodged and Assessed
Executors are responsible for filing the final tax return, covering the period from the start of the financial year to the date of death. The estate itself may also be subject to tax obligations, including income tax on assets held by the estate before they are distributed. In some cases, the estate may need to be assessed for capital gains tax if property or investments are sold. It's important to get professional advice to ensure all returns are lodged correctly, and any taxes due are paid.
Any Claims (e.g., Family Provision Applications) Have Been Resolved
In some cases, a will may not cover all potential beneficiaries, or someone may feel that they have not received a fair share of the estate. In Queensland, a family provision claim allows an eligible person to challenge the will or claim a larger share of the estate. Executors need to ensure that any claims are addressed before distributing the assets. The law provides a nine-month period from the date of death for these claims to be made (with a six-month timeframe for the notice of intention to be made), and it is important for executors to be aware of this deadline. If any claims are made, they must be resolved either through negotiation, mediation, or the courts before proceeding with asset distribution.
The Estate Has Been Distributed in Accordance with the Will or the Laws of Intestacy
After all debts, expenses, and claims are settled, the estate can be distributed in accordance with your loved one's wishes as outlined in the will or under the laws of intestacy if there is no valid will.
A Final Distribution Statement Is Prepared
A final distribution statement provides a detailed summary of how the estate's assets were handled. This statement should outline which assets were sold, how much was raised, any debts or expenses paid, and how the funds were distributed among the beneficiaries. It serves as a clear record for both the executor and the beneficiaries, ensuring that everyone understands how the estate has been managed and that the executor has fulfilled their duties properly. Executors are required to provide this statement to the beneficiaries at the time of distribution.
We're Here to Help
Administering a deceased estate can be overwhelming, but with the proper guidance, it doesn't have to be complicated. At Bradley and Bray, we're here to provide expert legal advice to help you manage the estate administration process.
If you have any questions or need assistance, don't hesitate to contact us. Our team is here to support you with clear, professional advice every step of the way.
Get in touch with us today. We're here to help you manage the estate with ease and compassion.
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.
You might also be interested in
