Understandably, once a beneficiary learns of their inheritance, they are generally very eager to know when they should expect to receive it.
Similarly, most executors are just as eager to complete their duties and distribute the assets to the beneficiaries as quickly as possible.
So, what exactly needs to be done and when can the distribution of the estate’s assets be made?
- Subject to the nature and value of the assets, a Grant of Probate must be obtained from the NSW Supreme Court. Once Probate has been granted, the executor is allowed to administer the estate in accordance with the terms of the Will.
- A Notice of Intention to Distribute must then be published on the NSW Supreme Court Website. This puts any creditors of the estate on notice that the assets are about to be distributed after a specified date as well as providing a contact address for the estate.
- The assets of the estate are collected (for example funds from the deceased’s bank accounts, the refundable accommodation bond from a nursing home, the proceeds of sale of shares, etc). A copy of the certificate of Probate is required by each of these institutions before they will release the funds.
- Any debts of the estate must be paid including the funeral expenses;
Once these steps have been completed, the executor is then technically able to proceed with the distribution of the assets.
However, there are a number of other issues for an executor to consider before handing out the money.
To avoid being personally liable for any claims made by creditors after the distribution has been made, the executor must ensure that:
- A minimum of 6 months has passed since the date of death;
- The Notice of Intention to Distribute has been published; and
- The date specified in this Notice has passed.
Potential Claims Against the Estate
The final issue for an executor to consider is whether there is potential for someone to contest the Will, (for example, is the Executor is aware that the deceased has left one of their children out of the Will?).
A person considering making such a claim against the Estate has a period of 12 months from the date of death in which to file their Application with the Court.
If an executor is aware or has reason to believe there may be a potential claim against the estate, then in such circumstances, to avoid the chances of personal liability, the executor should wait for the expiration of the 12 month period from the date of death, before making a final distribution of the estate’s assets.
Please feel free to contact Scott to discuss any enquiries you may have regarding Deceased Estates.