Settling a deceased estate in Australia is a process that involves many legal and administrative steps, and it can feel especially overwhelming during a time of grief. From locating the will to distributing assets and paying off debts, there’s a lot to manage, and it’s not always straightforward. Did you know that the process of finalising an estate can take anywhere from six months to several years, depending on the complexity involved? That’s why careful attention to detail, timing, and the correct legal steps is so important. In this post, we’ll walk you through the key stages of settling a deceased estate in Australia to help you approach the process with greater clarity and confidence.
What is Estate Administration?
Estate administration is the legal process of managing and finalising a person’s affairs after they’ve passed away. This includes identifying and valuing their assets, paying any outstanding debts and taxes, and distributing what remains to the rightful beneficiaries, either according to their will or, if there is no will, under Australian law. The timeframe for completing estate administration can vary. Most straightforward estates take around 6 to 12 months to finalise. However, more complex estates, especially those involving multiple assets, beneficiaries, or legal challenges, can take significantly longer. Every estate is different, with its own set of responsibilities and requirements depending on the individual’s financial and personal circumstances.
What Happens Legally After Someone Dies in Australia?
The legal process following a death in Australia largely depends on whether or not the person left a valid will.
- If a valid will exists, the person nominated as executor is responsible for managing the estate. To begin, they must apply to the Supreme Court for a Grant of Probate. This legal document confirms the will’s validity and gives the executor the authority to access accounts, sell property, and distribute the estate.
- If there is no will (known as dying intestate), a close family member who is usually the next of kin must apply for Letters of Administration. In this case, the estate is distributed according to a legal formula set out by the laws of each Australian state or territory. Typically, spouses, de facto partners, and children are given priority. Types of Grants of Representation
Four main types of legal grants may be issued by the Supreme Court:
- Probate: Granted when the executor proves the will is valid.
- Letters of Administration with the Will annexed: Used when there’s a valid will but no executor is named or able to act.
- Letters of Administration: Issued when there is no valid will.
- Limited Grants: Provided when administration is restricted by time, scope, or purpose.
For smaller estates (generally those valued under $113,000), a formal grant may not be necessary. However, most institutions (like banks and land registries) require a grant before releasing any assets.
Key Steps in the Estate Administration Process
Administering an estate involves several critical steps:
- Confirming and valuing the deceased’s assets and liabilities
- Applying for Probate or Letters of Administration
- Notifying government agencies and financial institutions
- Calculating taxes and lodging final returns with the ATO
- Collecting and managing estate assets
- Paying off debts, funeral costs, and professional fees
- Distributing the remaining assets to beneficiaries
Throughout the process, the executor or administrator must act honestly, responsibly, and in the best interests of the estate and its beneficiaries.
Step 1: Understand Your Role and Responsibilities
Taking on the responsibility of managing a deceased estate is a significant legal and personal duty. From the moment someone passes away, your role, whether as next of kin, an executor or administrator, comes into effect, and your actions set the tone for how the estate is handled. Knowing what’s expected can help you navigate this time with confidence and clarity.
Locate the Will and Check for Funeral Wishes
The first task is to locate the deceased’s most recent valid will. This document not only outlines how the estate should be distributed but may also contain important funeral instructions. Wills are often stored in secure places such as:
- The person’s home
- With their solicitor or accountant
- At their bank
- With a Trustee and Guardian (or equivalent)
When making inquiries, be ready to provide the deceased’s full name, last address, date of death, and your relationship to them. If multiple wills are found, the most recent version takes precedence. As executor, you are legally allowed to take possession of the body and arrange the funeral. Many banks will release funds from the deceased’s account to cover funeral expenses, even if other accounts are frozen.
Obtain the Official Death Certificate
An official death certificate is an essential document in the estate administration process. It acts as legal proof of death and is often required by banks, government departments, superannuation funds, and insurance providers. The funeral director typically registers the death and applies for the certificate on your behalf. Processing times and costs vary by state, but typically take between 7 and 14 business days.
Executor vs Administrator: What’s the Difference?
- An executor is named in a valid will and is responsible for carrying out the deceased’s wishes. Almost anyone over the age of 18 can be appointed as an executor, including family members, friends, solicitors, trustees or professionals. It’s common for people to name more than one executor, allowing them to share responsibilities or act as backups if needed. Although an executor’s authority begins immediately after death, they must apply for a Grant of Probate before they can officially access and distribute estate assets.
- An administrator is appointed by the court when there is no valid will or the named executor cannot act. Their authority comes only after they receive Letters of Administration, and they must distribute the estate according to set legal rules (not personal wishes).
Your Legal Duties and Potential Risks
Being an executor or administrator comes with serious legal obligations and potential risks. Some of your key duties include:
- Identifying and protecting estate assets
- Creating an inventory of assets and liabilities
- Paying debts in the correct order (e.g. funeral expenses, taxes, loans)
- Lodging tax returns and managing ongoing financial obligations
- Distributing the estate fairly and according to the law or will
Executors may be held personally liable for mistakes, especially if debts are not paid before distribution or if tax obligations are overlooked. Disputes from beneficiaries can also arise, adding further pressure to act with diligence and neutrality.
When to Seek Professional Support
While you don’t need legal or financial expertise, you do need to be organised, trustworthy, and willing to act in the best interests of the estate. Given the legal, financial, and emotional complexity of this role, it’s strongly recommended that you seek legal and accounting advice early in the process. Professional guidance helps you manage risks, stay compliant, and ensure the estate is administered properly and fairly.
Step 2: Secure the Estate and Notify Key Parties
Once you’ve confirmed your role as executor or administrator, your next priority is to protect the deceased’s assets and begin notifying relevant organisations. These early actions are essential for preventing loss, maintaining legal compliance, and preparing the estate for administration.
Access the Deceased’s Residence and Secure Valuables
Gaining access to the deceased’s home as soon as possible is crucial, especially if they lived alone. If you don’t already have a key, arrange to collect one from a trusted family member, neighbour, or property manager. In some cases, it may be wise to change the locks to prevent unauthorised access. Once inside the property:
- Secure valuable items and important documents (e.g. the will, identification, bank statements, insurance policies)
- Ensure nothing is removed from the home by anyone until a full inventory of assets has been completed
- Inspect the property regularly if it will remain vacant for some time
It’s also essential to check that any valuable assets (such as vehicles, jewellery, or artwork) and the property itself are adequately insured. Contact existing insurers to notify them of the death and confirm ongoing coverage. If needed, arrange temporary insurance to protect against theft, fire, or damage.
Notify Banks, Insurers, and Government Bodies
Within the first 28 days, you must notify key institutions of the death. The Australian Death Notification Service is a free, helpful tool that allows you to notify multiple organisations online in one go. Through this service, you can inform:
- Financial institutions (banks, credit unions, super funds)
- Government agencies (Australian Taxation Office, Centrelink, Services Australia)
- Insurance companies
- Utility and service providers
Once notified, most banks will freeze individual accounts to prevent unauthorised transactions. Joint accounts typically transfer to the surviving account holder, while solely held accounts are placed on hold until formal authority is granted through probate or letters of administration.
Redirect Mail and Cancel Unnecessary Services
Managing mail and ongoing services is another important task in the early stages of estate administration. Australia Post offers a free 12-month mail redirection service for deceased estates. To set this up, visit your local post office with:
- A completed mail redirection form
- Proof of your identity
- Documents showing your authority to manage the estate (such as the death certificate or will)
Redirected mail can provide insights into the deceased’s financial affairs and help identify subscriptions or services that need to be cancelled, such as:
- Utilities (electricity, gas, water)
- Telecommunications (internet, mobile and home phone)
- Subscriptions (streaming platforms, newspapers, magazines)
- Memberships and loyalty programs
- Professional or association memberships
Also, take time to close digital accounts, such as:
- Email and cloud storage platforms
- Social media accounts
- Online marketplaces and payment platforms
Doing this early helps prevent identity theft, reduces ongoing expenses, and ensures you have a clearer picture of the estate’s obligations and assets.
Step 3: Prepare for the Probate or Will Process
After a person passes away, probate is often the essential legal step that allows you, as executor, to begin administering the estate, giving you the authority to deal with banks, government agencies, and other institutions. Without it, many major assets such as real estate, investments, and bank accounts remain frozen and inaccessible.
Why Is Probate Important?
Probate provides two key protections:
- Validation: It confirms the will is authentic and that you have the legal authority to act as executor.
- Protection: It shields you from personal liability when distributing the estate’s assets, so you can carry out your duties with confidence.
However, probate isn’t always required. Smaller estates, especially those without real property, may have assets released by institutions without formal court approval. Always check directly with each bank or asset holder to understand their specific requirements.
Publishing a Notice of Intent to Apply for Probate
Before you submit your probate application to the court, you must publish a notice of your intention to apply. This legal requirement serves as public notice, allowing creditors or anyone who disputes the will to come forward. It helps protect you from future claims against the estate. The process for publishing this notice varies by state:
- In New South Wales (NSW), notices are published on the Supreme Court’s online registry at least 14 days before the application.
- In Queensland, notices are published in the Queensland Law Reporter, and copies are sent to the Public Trustee.
This waiting period ensures all interested parties have a chance to respond.
Preparing and Lodging the Probate Application
Once the notice period has passed, you’ll need to prepare and lodge your probate application with the Supreme Court. Key documents typically include:
- Summons for Probate (the formal request to the court)
- The original will (important: do not remove staples or fastenings)
- The official death certificate
- An affidavit of executor (your sworn statement of duties and responsibilities)
- An inventory of assets and liabilities detailing the estate’s value
Filing fees depend on the estate’s size and can range from nothing for small estates to over $5,000 for large estates. Processing times generally take about 4 to 6 weeks from lodging. If the court requires more information, it will issue a requisition requesting additional documents or clarification. Your application won’t move forward until you satisfy all requests.
Step 4: Identify and Value the Estate
Once you have obtained probate and the legal authority to manage the estate, your next important task is to create a comprehensive inventory of everything the deceased owned and owed. This step ensures that all assets are accounted for and properly valued, so nothing is overlooked when it comes time to distribute the estate.
List All Assets and Liabilities
Begin by compiling a detailed list of the deceased’s possessions and debts. Common assets to include are:
- Real estate properties (homes, investment properties, land)
- Bank accounts and cash holdings
- Investments such as shares, bonds, and managed funds
- Vehicles, boats, and other valuable personal property
- Household items and personal effects
- Digital assets like cryptocurrency, online accounts, and domain names
- Business interests or partnerships
At the same time, document all outstanding liabilities and debts, such as:
- Mortgages and secured loans
- Personal loans and credit card balances
- Unpaid bills and ongoing expenses
Having a full picture of both assets and liabilities helps determine the net value of the estate and ensures that all debts are paid before distributing assets to beneficiaries.
Check for Jointly Owned or Trust-Held Assets
Not all assets automatically form part of the deceased’s estate. Jointly owned assets often pass directly to the surviving owner through the legal principle of right of survivorship, which means they bypass the will entirely. Examples include:
- Joint bank accounts
- Property held as joint tenants
- Assets held in family trusts
On the other hand, assets owned as tenants in common work differently: The deceased’s share forms part of the estate and is distributed according to their will or intestacy laws. Understanding how each asset is owned is critical to correctly identifying what forms part of the estate.
Gather Financial Documents and Insurance Policies
To accurately value the estate and confirm all liabilities, collect all relevant financial paperwork, including:
- Bank statements from the past 12 months
- Investment portfolio summaries
- Recent property valuations or appraisals
- Insurance policies (life, home, vehicle)
- Superannuation statements
- Recent tax returns
- Business financial records
- Loan agreements and statements
For significant assets like real estate or business interests, obtaining formal professional valuations is often necessary. Engaging valuers, accountants, or financial advisors can help ensure your valuations are accurate and identify any tax implications that may affect the estate.
Step 5: Manage and Finalise the Estate Finances
Proper financial management is key to successfully administering a deceased estate. From opening a dedicated estate bank account to paying debts and taxes, these steps ensure the estate’s finances are handled transparently and correctly.
Open an Estate Bank Account
Setting up a dedicated estate account is essential for keeping the estate’s funds separate from your personal finances. This account, typically titled “Estate of [Deceased’s Name],” acts as the central hub for all money coming into and going out of the estate during administration. To open this account, banks generally require:
- The official death certificate
- The Grant of Probate or Letters of Administration
- Proof of your identity as executor or administrator
Only you, in your legal role, can access this account, which simplifies tracking financial transactions and helps you maintain clear records for beneficiaries and tax purposes.
Collect Superannuation and Insurance Payouts
It’s important to know that superannuation death benefits usually do not form part of the estate unless there is no valid nomination. Instead, the deceased’s super fund will pay the remaining benefits directly to a nominated beneficiary, known as a super death benefit, either as a lump sum or an income stream. If no beneficiary is nominated, the super fund trustee decides whether to pay the benefits to dependents or to the estate itself. Similarly, life insurance policies paid directly to nominated beneficiaries bypass the estate. Generally, death benefits paid to dependents are tax-free, while different tax rules apply when paid to non-dependents.
Pay Debts, Taxes, and Professional Fees
Before any assets can be distributed to beneficiaries, all debts and liabilities must be settled. The order of priority is usually:
- Funeral and administration expenses
- Secured debts, such as mortgages or car loans
- Unsecured debts, including credit cards and personal loans
- Tax liabilities
Distributing assets before paying off debts can expose you to personal liability. To reduce this risk, you may want to place a legal notice inviting creditors to present any claims within a specified timeframe.
Estate Tax and Capital Gains Considerations
Australia does not impose inheritance or estate taxes. However, capital gains tax (CGT) implications still apply when estate assets are sold or transferred.
- For assets acquired before September 20, 1985, beneficiaries receive a market value cost base as of the date of death.
- For assets acquired after this date, beneficiaries inherit the deceased’s original cost base.
You must also lodge a final tax return for the deceased, covering the period from July 1 up to the date of death. If the estate generates income during administration, it will need to file trust tax returns. Estates benefit from individual tax rates, including the full tax-free threshold for the first three income years following death. We recommend you obtain independent taxation advice in this regard.
Step 6: Final Distribution and Ongoing Trusts
One question we often see is “When Are Beneficiaries Notified?” In Australia, there’s no formal “reading of the will” ceremony, but executors must notify beneficiaries of their entitlements as soon as reasonably possible after death. Beneficiaries have the right to request a copy of the will and receive updates about when they can expect to receive their inheritance. Executors typically have up to 12 months from the date of death to fully distribute the estate. While some distributions happen sooner, many executors wait at least six months after probate to allow any creditors or claimants time to come forward before finalising the estate. There are substantial risks involved if Executors elect to fully distribute the estate before the expiry of the six-month period.
Distribute Assets to Beneficiaries or Sell Estate Assets
After all debts, taxes, and expenses are settled, the estate is distributed according to the instructions in the will. Assets specifically left to named beneficiaries should be transferred directly to them. If the will does not require certain property to be kept, executors may sell these assets and distribute the proceeds among the beneficiaries. For household items and personal effects, it’s good practice to create a detailed inventory and photos or videos can be useful for documentation. Beneficiaries can then be offered the chance to select items as part of their share of the estate. Reaching this stage can bring relief, but also new challenges. If you need professional support, firms like Pathway Legal offer expert advice tailored to your unique situation, ensuring the estate is handled smoothly and respectfully.
Setting Up Trusts for Minors or Ongoing Needs
Children under 18 cannot legally receive inheritance directly. Instead, their share must be held in trust until they reach the specified age, often 18, 21, or 25 years. Common types of trusts include:
- Children’s trusts (Minor’s trusts): Protect assets until the child reaches the designated age.
- Special Needs Trusts: Designed for dependents with physical or mental disabilities, providing tailored financial support.
- Discretionary Trusts: Provide trustees with flexibility to distribute funds based on the beneficiary’s needs.
Most trusts conclude when the minor reaches the specified age.
Closing the Estate and Providing Final Reports
Before finalising, prepare a detailed final statement outlining all assets, debts paid, and distributions made. This provides transparency and reassurance to beneficiaries about how the estate was managed. Once distribution is complete, the role as executor generally ends, although trustees may continue managing any ongoing trusts.
Key Takeaways
Settling a deceased estate is a challenging responsibility. Navigating complex legal processes while coping with grief can feel overwhelming. However, approaching each step methodically helps executors and administrators fulfil their duties properly and with confidence. Estate administration requires careful attention to detail and timing. From understanding the role and securing assets to obtaining probate, valuing the estate, managing finances, and distributing assets, each phase is essential to ensure the estate is handled correctly. However, there are legal risks involved if the process is mishandled. Seeking professional advice is crucial, especially for estates with multiple beneficiaries or substantial assets.
Expert guidance helps avoid personal liability and ensures all debts, taxes, and obligations are addressed before any distribution takes place. If you need help with a deceased estate, Pathway Legal is here for you. As a boutique law firm with offices on the Sunshine Coast and Gold Coast, we offer professional legal advice tailored to your unique needs. With over 40 years of combined experience, our local expertise and personalised approach mean clients receive trusted, tailored support every step of the way.
