Why do we have to wait so long to receive assets of a deceased estate?

Obtaining a Grant of Probate of a deceased estate can be a lengthy process, particularly where there are complex estate planning assets, such as Trust, business structures and an array of different classes of assets.

In such cases, it can take the executor of an estate some time to undertake their due diligence to ascertain the assets and liabilities held by the deceased at the time of their death.

Once a Grant of Probate has been successfully obtained the provisions of the Administration and Probate Act stipulate that an executor should not distribute the assets of the estate to the beneficiaries for a period of six months from the Grant of Probate and that should the executor determine to distribute the assets prior to this time and a claim is brought against the estate and is successful, the executor will be personally liable for such claim.

Given this high level of liability placed on the executor, it is in the executor’s best interest to wait for the six-month expiration period from the Grant of Probate before distributing the estate assets. Some assets of the estate may also take some time to sell, for example, real estate, and as such the sale proceeds of these assets will not be available until settlement of these properties have taken place.

Disclaimer: The advice provided in this article is of a general nature only and you should always seek legal advice relevant to your own circumstances.