Being named as an executor is a significant responsibility. You are tasked with managing someone’s estate, settling debts, and distributing assets to beneficiaries—all while navigating complex legal and tax requirements.
At Jameson Law, we have seen firsthand how executor duties in Australia can overwhelm even the most organised people. This guide walks you through your obligations, common pitfalls, and practical strategies to handle the role effectively.
What Executor Duties Actually Involve
Your Core Responsibilities as Executor
An executor’s role is fundamentally about managing someone’s financial and legal affairs after they die. You locate the will, obtain probate, identify all assets and liabilities, pay debts, and distribute what remains.
Under Australian law, you act as a fiduciary. This duty creates personal liability if you breach it or fail to pay tax obligations. Estate administration typically takes 6 to 12 months for straightforward estates, though complex situations with multiple properties or business interests can extend significantly longer. Your core responsibilities include:
- Securing assets immediately and obtaining death certificates.
- Notifying beneficiaries and gathering financial records.
- Arranging a Grant of Probate via the Supreme Court.
- Managing an estate bank account separate from your personal funds.
- Preparing detailed accounting showing every transaction before distribution.
Executors vs. Administrators: Understanding the Difference
An executor is named in the will and applies for a grant of probate. An administrator steps in when there is no will (intestacy) or no named executor, applying to the court for Letters of Administration instead. Regardless of the title, the fiduciary duties and personal liability exposure remain identical.
The Six-Month Rule and Asset Distribution
The six-month rule is critical. In NSW, while you are not legally required to distribute everything within six months, avoiding distribution for at least that period—and publishing a Notice of Intended Distribution—protects you against late claims from undisclosed beneficiaries. Waiting the full 12 months provides even stronger protection against family provision claims.
What Derails Estate Administration?
Asset and Debt Mismanagement
Estate administration fails most often when executors underestimate the sheer volume of financial complexity. A deceased person might have bank accounts, shares, real estate, superannuation, life insurance, and digital assets scattered across multiple platforms.
Many executors also miss liabilities because they focus only on obvious debts like mortgages. Outstanding tax bills, council rates, and utility arrears all rank as legitimate liabilities. If you fail to discover a tax debt and distribute the funds, you can be held personally liable for that shortfall.
Beneficiary Disputes and Communication Failures
Beneficiary disputes escalate quickly when communication breaks down. Some beneficiaries expect faster distributions than the law allows. The solution is ruthless transparency: notify beneficiaries of your appointment immediately, provide a copy of the will, and commit to regular progress updates. If you anticipate family tension, seek early legal intervention before distribution occurs.
Tax Obligations and Personal Liability
Tax obligations demand particular attention. You must lodge outstanding income tax returns for the deceased with the Australian Taxation Office (ATO), manage Capital Gains Tax (CGT) on asset sales, and confirm superannuation proceeds are handled correctly. The ATO expects executors to act with competence, and mistakes attract compounding penalties and interest.
How to Protect Yourself as Executor
Engage Professional Support Early
Protecting yourself from liability starts with recognising that executor duties demand professional support. A solicitor experienced in succession law should be engaged immediately to clarify your obligations under your state’s specific legislation. For example:
- New South Wales: Succession Act 2006 (NSW)
- Victoria: Administration and Probate Act 1958 (Vic)
- Queensland: Succession Act 1981 (Qld)
Early professional engagement costs less than fixing mistakes. A solicitor can review your asset inventory before you submit probate and advise whether beneficiaries might challenge distributions. This preventive approach prevents liability claims that cost tens of thousands to defend.
Maintain Rigorous Documentation Standards
You must record every financial transaction related to the estate in detail. Open a separate estate bank account immediately. Never mix personal and estate money, as commingling funds can constitute fraud. Maintain physical and digital files organised by category (assets, liabilities, tax records, and distribution calculations).
Create an Audit Trail Through Written Communication
Document all conversations with beneficiaries in writing through email. Provide them with an initial notification letter, progress updates every 4–6 weeks, and a final accounting statement before distribution. Courts expect you to maintain this level of documentation as evidence of proper administration.
Final Thoughts
Executor duties in Australia demand more than good intentions. You are managing a financial legacy while navigating probate requirements, ATO tax obligations, and beneficiary expectations simultaneously.
Straightforward estates may proceed with careful self-management and basic professional review, but complex estates involving multiple properties, businesses, or anticipated family disputes require immediate legal engagement.
We at Jameson Law specialise in wills and estates administration across Australia and can guide you through your specific obligations to ensure you are fully protected from personal liability. Contact us today to discuss your situation and determine the professional support you need.
