Estate Administration Process – Things To Know

July 26, 2023    Estate Planning Lawyers Perth
Estate Administration Process – Things To Know

When an individual passes away, the administrator or the will executor takes up the ownership of the estate administration process of the deceased. In doing so, the administrator gets full power to make all the funeral arrangements.

It’s important for one to have good knowledge about the steps of estate administration when he/she is responsible for writing down the Will. Otherwise, if he/she is administering or executing a deceased individual’s estate, they must know the process of estate administration.

In general, there are multiple things that must happen to manage the estate administration of the deceased. The entire process can take several months to finish, and in certain situations, it can take years.

What is the Process of Estate Administration?

Whether or not the deceased individual has a small or big estate, it’s crucial to use the correct method for estate administration work. Many individuals have no clue where exactly they need to begin the entire estate administration.

To make things easier, in this section, one will find the steps to perform the administration of the estate’s process, which can help them get the job done quickly and effectively. These steps are:

Step 1: Confirm All the Liabilities and Assets

The liabilities and assets of the estate should be verified right before the formal valuation takes place. Besides that, the statement of the liabilities and assets gets made, and in the majority of the jurisdiction, part of the data should be provided to the Supreme Court.

Step 2: Apply for the Validity of the Will

The estate’s executor should obtain a confirmation from the Court to prove that the existing Will is valid and also the most recent Will of the deceased individual.

This is known as “validation” or “probate”, and one must obtain it right before the estate’s assets get administered.

Step 3: Calculate the Tax Insinuations

The tax return of an individual from 1st July till the date of their death should be properly prepared and lodged by the executor on behalf of the deceased individual.

If there is a trust, the executor also has to finish up the trust tax return for the income derived or received by the estate of the deceased person. In certain occasions, the trust tax return should get lodged during each financial year till the estate of the deceased is administered.

Here, the special capital gains tax rules apply when the GGT assets are transferred from the deceased person’s estate. The professional lawyers for Estate Planning in Perth have suggested that all the beneficiaries should take advice from the specialist when it comes to the implications of disposing or passing on all the assets of the deceased estate.

For the majority of the state legislative needs, the executor should publish the “notice of intention” so that they can apply for the probate on the court’s website and major newspaper. The executor also needs to publish the statutory notice to all the creditors.

This notice will provide the estate’s creditors with the statutory period to lodge their claim against the deceased individual’s estate. In general, the estate’s distribution will not be made until the notice expires.

Step 4: Realisation and Collection of the Assets

When the probate is granted, the executor will gather all the assets of the deceased individual, provide for the legacies and bequest, and pay the expenses and liabilities under the will. The executor will also realise all the other assets that are mentioned in the Will.

The estate distribution will get delayed when the executor puts up a notice when a claim is made on the estate. When the potential claim or the claim’s notice is received, it’s not possible to distribute the estate till the matter gets resolved by the Court.

Step 5: Paying Off the Inheritances and Birthrights

Subject to the realisation and gathering of the assets and paying off the liabilities, certain gifted products mentioned in the Will, like jewellery and furniture, will get distributed. All the minor beneficiaries [who are below 18] will get cash legacies or what the Will directs.

All the funds will get invested and retained on behalf of the beneficiaries till they become eligible to obtain the funds.

Step 6: Closing Down the Social Media Accounts

When an individual passes away, the executor gains the authority to close the social media accounts of the deceased individual.

They can also make the decision whether or not they wish to keep it active. The executor should take this decision after consulting with the surviving family members of the deceased.

The reliable and trusted estate administration lawyer Perth has pointed out that when dealing with the social media accounts of the deceased individual, there are certain things one must do:

  • Find all the social media platforms where the deceased person’s profiles are
  • Check to see if there is any information or posts that need to be removed
  • Decide whether or not a “tribute” or “memorial” profile must be retained for the deceased individual.
  • Decide which social media accounts one wants to close down.

In today’s modern times, people normally utilise social media platforms like LinkedIn, Snapchat, Tik Tok, Instagram, Twitter and Facebook. ‘

If one searches for the deceased person’s name on Google, one will surely find out whether or not the person had any account. After that, make a list of all the social media accounts of their username or name.

If one wishes to delete or deactivate the social media account of the deceased, please take some time and go through the posts he/she has made and save all the pictures that one wishes to keep.

Step 7: Distributing the Assets

When all the work and procedures related to the estate have been completed, it’s time to distribute the estate to all the beneficiaries. After that, all the beneficiaries who have a share in the estate will receive a financial statement.

On some occasions, the WILL directs that the entire estate should be managed for some time, which is over the heir’s lifetime. The continuing estates will need proper planning and monitoring to make sure appropriate investment and tax tactics get applied for the heir.

Final Thoughts

The process of estate administration should be done carefully and make sure that there is no error or problems taking place during the process.

There are certain steps that the executor or administrator must follow to make sure that all the beneficiaries receive their inheritance on time.

To learn more about what is estate planning and why it is important, estate planning lawyers can certainly offer their advice and help on such matters.

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