Dealing with the administration of a deceased loved one’s estate can be challenging during an already difficult time. This guide aims to provide a clear roadmap for executors, administrators and beneficiaries navigating this process in Victoria. Seeking legal advice on deceased estates early in the process can help avoid complications and ensure the deceased’s wishes are properly carried out.
Key Takeaways
- Deceased estate administration follows a specific legal process in Victoria, requiring either probate or letters of administration from the Supreme Court.
- The process typically involves six main steps: locating the will, obtaining legal authority, identifying assets and liabilities, managing debts and tax obligations, resolving disputes, and distributing assets.
- Thorough record-keeping is essential throughout the administration process, with most estates taking 9-12 months to finalise.
- Professional help from solicitors, accountants or the Public Trustee is recommended for complex estates or when disputes arise.
What Is a Deceased Estate in Victoria?
A deceased estate comprises all assets and liabilities a person leaves behind after death. The executor is the person named in the will to administer the estate, while an administrator is appointed by the court when there’s no valid will or no executor willing to act.
In Victoria, the Administration and Probate Act governs estate administration, with the Supreme Court’s Probate Office overseeing the process. Probate (or letters of administration when there’s no will) is typically required for estates with significant assets, real property, or when financial institutions require it to release funds.
Step 1: Locate the Will and Notify Interested Parties
The initial step involves finding the deceased’s will. Common storage locations include their home, with their solicitor, in bank safe deposit boxes, or with the Victorian Registry of Births, Deaths and Marriages Safe Custody service.
Once located, notify immediate family, named beneficiaries, and key institutions such as banks, insurance companies, and utility providers of the death. Secure the deceased’s property by changing locks if necessary, stopping direct debits, and collecting valuable items for safekeeping.
Step 2: Apply for a Grant of Probate or Letters of Administration
This step involves obtaining legal authority to administer the estate. For a valid will, executors apply for probate. If there’s no will or valid executor, an eligible person (usually next of kin) applies for letters of administration.
“The probate application is a critical step that formally recognises your authority to administer the estate and protects you from personal liability when distributing assets correctly.” – Tonkin Legal
Required documents include the original will, death certificate, an affidavit of executor, inventory of assets, and the appropriate filing fee. Applications are lodged with the Supreme Court of Victoria Probate Office, with processing typically taking 3-5 weeks for straightforward cases.
Step 3: Identify, Collect and Value Assets and Liabilities
Create a comprehensive inventory of the deceased’s assets including:
- Real property (houses, land)
- Financial accounts and investments
- Superannuation and insurance policies
- Personal possessions and vehicles
- Digital assets (online accounts, cryptocurrencies)
Professional valuations may be required for real estate, jewellery, artwork, or business interests. For digital assets, search for password managers or documentation of online accounts.
Similarly, compile a list of liabilities including mortgages, loans, unpaid bills, and potential tax obligations. Request final statements from creditors to verify exact amounts owed.
Step 4: Manage Debts, Tax and Estate Accounts
Open a dedicated estate bank account to manage financial transactions. Pay debts in the legally prescribed order, typically funeral expenses first, followed by administration costs, then other debts.
Tax obligations include lodging the deceased’s final tax return up to the date of death and potentially an estate tax return for income generated during administration. Keep meticulous records of all transactions, as you’ll need to account for these to beneficiaries.
For complex estates, consider obtaining a clearance certificate from the Australian Taxation Office before final distribution to avoid personal liability for outstanding tax.
Step 5: Resolve Claims and Disputes
In Victoria, eligible persons can contest a will through family provision claims within six months of probate being granted. Common disputes include questions about will validity, conflicts between beneficiaries, or concerns about executor conduct.
Resolution options include mediation, formal court proceedings, or in some cases, involving the State Trustees (Victoria’s Public Trustee). Early professional advice can often prevent disputes from escalating to costly litigation.
Step 6: Distribute Assets and Finalise the Estate
Once debts are paid and any disputes resolved, distribute the remaining assets according to the will or intestacy rules if there’s no valid will. This involves transferring property titles, closing and distributing bank accounts, and allocating personal items.
Prepare distribution statements for beneficiaries detailing their entitlements and obtain receipts acknowledging their acceptance. Finally, close the estate account and prepare a final report for beneficiaries showing how the estate was administered.
Record Keeping and Timeframes
Maintain thorough records of all estate documents including the will, grant of probate or administration, asset valuations, tax returns, correspondence with beneficiaries and receipts for distributions.
Most straightforward estates take 9-12 months to finalise, though complex estates or those involving disputes may take longer. Executors should retain estate records for at least 7 years, as questions or claims may arise long after distribution.
When to Use Professional Help
Consider engaging professional assistance for:
- Large or complex estates with diverse assets
- Estates involving business interests or trusts
- When beneficiaries are minors or have special needs
- Where family conflicts or potential claims exist
- If you’re unfamiliar with financial or legal matters
Professional fees can be paid from the estate and may be based on hourly rates or a percentage of estate value. The State Trustees can act as administrator when no one else is willing or able to take on the role.
Conclusion
A deceased estate administration involves significant responsibility and attention to detail. The process begins with locating the will, obtaining legal authority through probate or letters of administration, managing assets and liabilities, addressing any claims, and finally distributing assets according to the deceased’s wishes or intestacy rules.
If you’re facing this responsibility, your first steps should be to secure any property, locate the will, and consult with Tonkin Legal if the estate appears complex or you’re unsure about your obligations. With proper guidance and careful adherence to the process, you can fulfil this important responsibility effectively and respectfully.
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