What is Estate Administration?

Once a Grant of Probate of the deceased’s Will has been obtained it is the executor’s role to administer the estate until such time that the estate can be distributed to the beneficiaries.

In instances where there are minor children this may mean that the executor would look after the assets of the estate until such time that the children attain the age stipulated in the deceased’s Will in which the children are to receive their inherited assets.

In such case, the executor should seek financial and accounting advise in respect to the assets of the estate so that they can make informed decisions about the best investments for these assets to be placed in and so that they are across all tax implications of the various investments and how these investments would impact the beneficiaries.

It’s important to note that the executor has a strong fiduciary duty to the beneficiaries and must act in their best interests at all times. In this connection this means that the executor must not invest the estate assets in high risk or speculative investments.

In order for the executor to distribute the assets in accordance with the Will the executor may be required to sell some of the estate assets, for instance property or shares. Or the Will may stipulate that these assets are to be directly transferred to specific beneficiaries.

In respect to property, the executor must maintain the property in good order until it is either sold or transferred to a beneficiary and ensure that all of the relevant insurances are kept up to date.

The same principle applies for any motor vehicles, caravans, boats or other similar class of assets.

Jewellery must be accounted for and kept in a safe place, as should furniture and personal effects particularly if the deceased has left specific bequeaths in respect to these items.

The executor must attend to the final tax return for both the deceased and the estate and any tax liabilities paid.

The executor must also arrange the payment of any outstanding liabilities of the estate, including funeral expenses, property maintenance, insurances, financial, legal and accounting fees prior to the distribution of the estate.

It is also the executors duty to provide the beneficiaries with a listing of all of the assets and expenditures of the estate together with the entitlements to be paid to each of the beneficiaries.

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.