The death of a family member or close friend often brings both emotional strain and practical responsibility. Alongside funeral arrangements and personal matters, someone may need to identify the deceased person’s assets, contact financial institutions, deal with property, pay liabilities and distribute the estate to the beneficiaries.

In Victoria, the legal process will depend on whether the deceased left a valid will, the nature and value of the assets, and whether a grant of representation is required. Although every estate is different, understanding the main stages can help executors, administrators and family members approach the process in an organised way.

One of the first tasks after a death is to locate the original will. It may be held by the deceased’s lawyer, stored with important personal papers or kept in a secure location.

The will usually appoints one or more executors. An executor is responsible for administering the estate in accordance with the will and the law. If there is no valid will, the estate is described as intestate. In that situation, an eligible person may need to apply to the Supreme Court of Victoria for letters of administration.

The rules governing letters of administration in Victoria determine who may apply and how authority to administer the estate is obtained. The administrator performs a role similar to that of an executor, but the estate is distributed according to the intestacy rules rather than the deceased’s personal instructions.

Partial intestacy can also arise where a will exists but does not effectively dispose of the entire estate. This is one reason why wills should be prepared carefully and reviewed after significant life events such as marriage, separation, divorce, the birth of children or the acquisition of substantial assets.

Before an estate can be administered, the executor or proposed administrator needs to determine what the deceased owned and what liabilities remain outstanding.

Assets may include:

• real estate;
• bank accounts and term deposits;
• shares and managed investments;
• motor vehicles;
• business interests;
• personal property;
• refunds and unpaid entitlements;
• digital assets; and
• debts owed to the deceased.

Liabilities may include mortgages, personal loans, credit cards, tax obligations, household accounts, funeral expenses and professional costs.

Superannuation and life insurance require separate attention. These benefits do not always form part of the estate. The destination of a superannuation death benefit may depend on a binding nomination, the fund rules and a trustee decision. Executors should not assume that every financial entitlement automatically passes under the will.

Accurate records are important. Executors and administrators should maintain copies of correspondence, statements, invoices, valuations and receipts throughout the administration.

An executor is not simply a person who distributes money to beneficiaries. The role carries legal and practical responsibilities that may continue for many months.

The duties of an executor in Victoria generally include protecting estate property, identifying assets and liabilities, obtaining a grant where necessary, paying legitimate debts, dealing with taxation matters, keeping proper accounts and distributing the estate correctly.

Executors must act in the interests of the estate as a whole. They should avoid conflicts of interest and should not prefer one beneficiary over another without a proper legal basis.

This can become complicated where the executor is also a beneficiary, there are disagreements within the family or the estate includes a business, rural land, overseas property or a substantial investment portfolio.

Executors should also exercise caution before making distributions. If money is distributed too early and a later debt, tax liability or claim emerges, the executor may face difficulty recovering the funds.

Probate is the process by which the Supreme Court formally recognises a will and confirms the executor’s authority to administer the estate.

Letters of administration may be required where there is no valid will, no executor is appointed, or the appointed executor cannot or will not act.

A grant is not required for every estate. Some banks and institutions may release smaller assets without one, depending on their internal requirements. However, a grant is commonly required where the deceased owned real estate solely or held substantial assets in their own name.

The application usually requires careful preparation of the will, death certificate, inventory of assets and liabilities, affidavits and other supporting material. Any irregularity in the will, such as alterations, damage, informal signing or questions about capacity, may need to be addressed before a grant is made.

Obtaining probate is an important milestone, but it does not complete the estate administration. It gives the executor formal authority to collect and deal with estate assets.

The process of administering a deceased estate after probate may involve closing bank accounts, transferring or selling property, collecting investment proceeds, paying creditors, preparing tax returns, resolving disputes and distributing the balance to beneficiaries.

Real estate may need to be transferred to a beneficiary or sold. Shares may be transferred, sold or dealt with under the terms of the will. Personal belongings may need to be divided among family members, donated or sold.

The executor may also need to determine whether the deceased had outstanding income tax obligations and whether the estate itself must lodge tax returns. Capital gains tax issues can arise when estate assets are sold or transferred.

Before distributing an estate, the executor should identify and deal with creditors. This may include publishing an appropriate notice to protect against unknown claims, depending on the circumstances.

Not every demand made against an estate is necessarily valid. Executors may need supporting documents before paying a claimed debt, particularly where the amount is disputed or poorly documented.

Family provision claims are another important consideration. In Victoria, certain eligible people may seek further provision from an estate if they believe the deceased failed to make adequate provision for their proper maintenance and support.

Executors should be cautious where there is a realistic possibility of a claim. Premature distribution can expose the executor and complicate the estate’s defence.

Beneficiaries often want to know how long the administration will take. There is no universal timeframe. A straightforward estate may progress relatively quickly, while a complex estate can take much longer.

Delays may arise because of:

• difficulties locating assets;
• property sales;
• taxation work;
• disputes about the will;
• family provision claims;
• overseas beneficiaries;
• business interests;
• unpaid debts;
• missing documents; or
• disagreements between executors.

Clear communication can reduce frustration. Executors should provide reasonable updates without making promises about distribution dates before the relevant work is complete.

Beneficiaries are generally entitled to receive the benefit left to them under the will, but they do not necessarily have the right to direct every administrative decision.

Before finalising the estate, the executor should prepare a clear record of money received and paid. The accounts should show the assets collected, liabilities discharged, expenses incurred and distributions proposed.

In some cases, an interim distribution may be possible before the estate is completely finalised. This should only occur after sufficient funds have been retained for tax, costs, debts and potential claims.

Final distribution should follow the terms of the will or, in an intestate estate, the statutory distribution rules. Receipts and releases may be obtained from beneficiaries as part of the completion process.

Estate administration combines legal obligations, financial management and family expectations. Problems can arise when executors act without understanding their duties, distribute assets too early, overlook creditors or misunderstand the terms of the will.

Early professional advice can help identify whether probate or administration is required, clarify the executor’s responsibilities and establish a practical plan for dealing with the estate.

The objective is not merely to complete paperwork. Proper administration protects the estate, respects the deceased’s wishes and helps ensure that beneficiaries receive their entitlements in accordance with the law.