When a loved one passes away, managing their estate can feel overwhelming. Once probate is granted, many wonder what happens next. This article explores the steps that follow probate in Victoria, Australia, and provides clarity on the responsibilities involved in administering an estate.
Steps to Take After Probate Is Granted
Once probate is granted by the Supreme Court of Victoria, the executor named in the will is legally empowered to manage the deceased’s estate. Here are the steps that typically follow:
Step 1: Collecting Estate Assets
The first step is locating and gathering all assets belonging to the deceased. These may include bank accounts, real estate properties, superannuation funds in certain cases, shares, investments, and personal belongings of significant value. Financial institutions and other organisations will require a copy of the probate certificate before releasing funds or transferring ownership of these assets.
Step 2: Paying Outstanding Debts and Liabilities
The executor must settle all outstanding debts and liabilities of the deceased. This includes mortgage repayments, credit card bills, utility payments, and any outstanding taxes, such as income tax or capital gains tax. It is crucial for the executor to ensure all liabilities are paid before distributing any assets to beneficiaries to avoid potential legal complications.
Step 3: Filing Tax Returns
Executors are responsible for filing the deceased’s final tax return. This involves reporting income earned until the date of death and addressing any applicable capital gains tax liabilities for assets sold during the administration process. In some cases, the estate itself may generate income during this period, requiring a separate tax return to be filed.
Step 4: Distributing the Estate to Beneficiaries
Once debts are paid and tax matters resolved, the executor distributes the remaining assets to the beneficiaries as specified in the will. Communication is key during this phase, and executors should keep beneficiaries informed about when and how distributions will occur.
Step 5: Finalising the Estate
The estate administration is considered finalised once all assets have been distributed and the executor’s duties fulfilled. Executors often provide a statement of finalisation to beneficiaries, marking the end of their responsibilities.
Additional Relevant Information About Estate Administration
Challenges Executors May Face
The process of administering an estate can present challenges for executors. Common issues include locating all assets, particularly if some are overseas or poorly documented, and managing disputes among beneficiaries over the distribution of assets. Delays can also arise due to incomplete paperwork or complex legal requirements. Seeking professional legal advice can be essential in resolving these challenges effectively.
Superannuation and Life Insurance
Superannuation is generally not considered part of the deceased’s estate unless explicitly mentioned in the will or nominated to be payable to the estate. Executors should check with superannuation funds and insurance providers for any death benefits, as these may require separate handling outside of the probate process.
Dealing With Intestate Estates
If the deceased passed away without a valid will, probate is not granted. Instead, the court appoints an administrator to manage the estate. This process follows the rules of intestacy in Victoria, which dictate how assets are distributed among eligible relatives. Executors should be aware that the absence of a will often complicates estate administration, leading to delays and potential disputes.
Timeframes for Estate Administration
The timeframe for estate administration varies depending on the complexity of the assets involved and the time required to resolve tax and legal matters. While straightforward cases may be finalised within a few months, more complex estates can take up to a year or longer. Executors must act diligently and ensure all tasks are completed within a reasonable timeframe to avoid unnecessary delays or conflicts.
Need Help With Estate Administration After Probate?
Administering an estate after probate is granted can be a complex and time-consuming process. At Campus Lawyers, our experienced probate lawyers in Melbourne can provide expert guidance to ensure the process is handled smoothly and in compliance with legal requirements.
Contact our team today for compassionate and professional support. Call us at 1800 99 2005. We’re here to help you through every step of the estate administration process.