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Why It’s Important to Obtain Legal Advice During Estate Administration
Our Wills and Estate team discuss this important topic.
Administering a deceased estate can be a complex and time-consuming process, particularly during an already difficult and emotional period. Executors and administrators are often required to manage significant legal, financial and practical responsibilities, and mistakes made during the administration process can expose them to personal liability.
Obtaining legal advice early in the administration of an estate can assist executors and administrators to understand their obligations, avoid unnecessary delays and ensure the estate is administered properly and in accordance with the law.
Understanding the Role of an Executor or Administrator
An executor appointed under a Will, or an administrator appointed where there is no valid Will, is responsible for managing and finalising the deceased person’s estate.
This process commonly involves:
- identifying and securing estate assets;
- obtaining a grant of probate or letters of administration where required;
- communicating with beneficiaries and relevant institutions;
- paying debts and liabilities of the estate;
- preparing estate accounts;
- managing taxation and other legal obligations;
- distributing assets to beneficiaries; and
- addressing any disputes or claims made against the estate.
While some estates may appear straightforward, estate administration can quickly become complicated where there are multiple beneficiaries, blended families, trusts, business interests, property holdings or disputes between family members.
Executors and Administrators Can Be Personally Liable
Many executors and administrators are unaware that they may be held personally responsible if the estate is not administered correctly.
Examples of common issues include:
- distributing assets before debts or liabilities are resolved;
- failing to identify all estate assets;
- making incorrect distributions to beneficiaries;
- failing to properly advertise for creditors;
- failing to address taxation obligations;
- distributing an estate before the time limit for claims has expired; or
- failing to adequately manage disputes between beneficiaries.
Legal advice can assist executors and administrators to understand their obligations and reduce the risk of personal liability during the administration process.
Probate and Legal Requirements
In many estates, a grant of probate or letters of administration is required before estate assets can be dealt with.
The application process involves preparing Court documents, complying with procedural requirements and ensuring the correct supporting information is provided. Errors or omissions can result in delays, requisitions from the Court and additional costs.
A lawyer can assist with preparing the application, liaising with financial institutions and ensuring the administration progresses as efficiently as possible.
Managing Estate Disputes
Disputes can arise during estate administration for a number of reasons, including disagreements between beneficiaries, concerns regarding the validity of a Will or claims by eligible persons seeking further provision from the estate.
Obtaining legal advice early can assist in identifying risks, preserving estate assets and managing disputes before they escalate.
Advice is particularly important where:
- there are concerns regarding the conduct of an executor or administrator;
- a beneficiary disputes the terms of the Will;
- family provision claims may arise;
- there are informal promises or competing claims regarding assets; or
- communication between family members has broken down.
Assistance With Complex Assets and Structures
Estates involving trusts, companies, business interests, self-managed superannuation funds or overseas assets often require additional legal and practical considerations.
Legal advice can assist executors and administrators to identify the appropriate steps required to deal with these assets and ensure compliance with relevant legal obligations.
Reducing Stress During a Difficult Time
Estate administration often occurs during periods of grief and emotional strain. Many executors and administrators have little or no prior experience managing an estate and may feel overwhelmed by the legal, financial and practical responsibilities involved.
Engaging a lawyer can provide clarity, guidance and support throughout the process, allowing executors and administrators to carry out their responsibilities with greater confidence and peace of mind.
Seeking Advice Early
Obtaining legal advice at an early stage can help avoid delays, reduce risk and ensure the estate is administered properly from the outset.
Even where an estate appears uncomplicated, early advice can assist executors and administrators to understand their obligations, identify potential issues and ensure the administration process proceeds as smoothly and efficiently as possible.
How can HHG Legal Group help?
*The information provided in this website serves as a general guide and does not constitute legal advice. It is based on our research and experience at the time of publication. Please consult our knowledgeable legal team for any specific inquiries or advice relevant to your circumstances, as the content may not have been updated subsequently.