Estate Administration

Estate administration is the process of collecting and managing a deceased person’s assets. This will involve paying any outstanding debts and distributing the estate assets to the beneficiaries.

Administering an estate is a very complex and time consuming task. We recommend appointing a professional executor such as the Public Trustee to minimise the workload and burden on your family and friends at an already difficult time.

We are a ‘one stop shop’ for estate administration and provide the full range of executor services. Our estate managers, accountants and solicitors are equipped to deal with any issue that may arise. We will do everything we can to ensure that the administration of your estate is finalised without unnecessary delay.

Even though the circumstances of each estate are unique, the estate administration process generally takes between 6 to 12 months (depending on the complexity of the estate). The process may take a little longer if disputes or difficulties arise e.g. the age of the beneficiary or the need to sell property. In this case, we can sometimes arrange an interim cash distribution to be made, on the proviso that all forms are completed and received.

If you would like to make an appointment to discuss estate administration, please fill out our appointment booking form and a representative will contact you to confirm your appointment.

  • Our Estate Administration Process

    Our Estate Administration Process

    Our role starts when we learn of a person’s passing and ends when everything has been distributed to all the beneficiaries. At the Public Trustee, an estate administration generally has five main stages: 

    STAGE 1: INITIAL MEETING

    Where possible, we will arrange a meeting with all the beneficiaries of the estate. We can meet with all beneficiaries at once or individually. In this meeting we will:

    • advise the beneficiaries of their entitlements under the terms of the Will;
    • explain what is involved;
    • develop a plan on the best way to communicate with each beneficiary (for more information please refer to our communications standards on our website);
    • seek your views on the distribution of assets (although we are bound to follow the instructions in the Will);
    • discuss any issues that might affect the estate.

    STAGE 2: COLLECTING INFORMATION

    During this stage we will collect information to confirm the estate’s assets and liabilities. We will also:

    • obtain a death certificate;
    • protect the estate assets;
    • insure real estate and personal property;
    • protect any business interests;
    • confirm the nature and value of estate assets including cash, personal effects, real estate, shareholdings and other investments, business interests, debts due to the estate and any interstate or overseas property;
    • advertise for creditors.

    STAGE 3: GOING TO COURT

    At this stage, if it is required, we proceed to obtain the authority of the Supreme Court of Tasmania to administer the estate. If there was a valid Will this is called a grant of probate. Under the Testator’s Family Maintenance Act 1912, once the Supreme Court authority is received, any person who is eligible to make a claim against the estate has 3 months to notify the Public Trustee of their intention to make a claim.

    STAGE 4: DEALING WITH ASSETS AND LIABILITIES

    During this 3 month claim period, we continue the estate administration and process by:

    • selling assets (including real estate);
    • realising the estate assets that are not subject to any potential dispute;
    • collecting income;
    • paying any liabilities including telephone, electricity accounts and rates;
    • holding funds in our cash Common Fund;
    • obtaining a taxation clearance from the Australian Taxation Office;
    • preparing final financial statements and detailing all transactions in relation to the estate administration.

    STAGE 5: DISTRIBUTION

    Once the 3 month claim period has expired, providing there are no disputes in relation to the distribution of the estate, we will then proceed to:

    • pay any cash legacies under the Will;
    • arrange for specific gifts of personal and real property to be passed to the named beneficiaries;
    • transfer assets to beneficiaries; 
    • distribute the proceeds to beneficiaries;
    • establish any trusts in accordance to the terms of the Will or the law (e.g. when beneficiaries are under the legal age of 18 – the youngest age at which they can receive their interest in an estate in their own right); and
    • prepare final income tax returns.

  • Are you an Executor?

    Are you an Executor?

    Being an executor of a Will can be a complex and time consuming task. Many people appoint a friend or relative as a way of acknowledging their respect or admiration for that person. However, being left with the burden of administering a loved one’s estate can be a distressing task during a time of grief.

    If you have been named the executor of a Will you are under no legal obligation to accept this appointment. Taking on the responsibility may not be the right thing for you and it is unlikely that the person who nominated you would have wanted to put you under stress.

    If you are unsure whether you are the right person to take on the role of executor, you should consider this before you apply for a grant of probate. However, before making this decision it is important you consider the following:

    • Do you have time to manage all the paperwork required in a timely way?
    • Will you be able to find all the beneficiaries of the estate easily?
    • Are you confident you have the relevant business, legal and financial experience to create the best outcome for the beneficiaries?
    • Will the beneficiaries view your actions as impartial, or will you be open to criticism and accusations of bias?

    We are experts in estate administration and with our dedicated team of estate managers, accountants and solicitors we are equipped to deal with any issue that may arise. If you are worried about not being able to achieve all that is asked of you as executor, please contact your nearest Public Trustee branch.

  • Estate Administration Fees & Charges

    You will receive services from a team of highly skilled professionals who specialise in Wills, deceased estate administration, trust law and financial administration.

    Estate Administration Fees and Charges:

    (From 1 January 2020)

    If you own assets (say, your house, or land) as a joint tenant

    0%

    If you have solely-owned assets which are classed as ‘matrimonial assets’ and which are transferred to your surviving spouse or defacto partner - for example the family home, motor vehicle, household effects and furniture

    2.2%

    If assets held in your sole name are realised or transferred to a beneficiary the following fees apply:

    On the first $200,000 or part

    4.5%

    On the next $200,000 or part

    3.5%

    On the next $200,000 or part

    2.5%

    On amounts above $600,000

    1.5%

     A minimum fee will depend on the complexity of the estate and range from $1,500 to $4,500. 

    Income Commission

    The Public Trustee charges 6.6% commission on the receipt of all income such as interest, dividends, pensions and rental income (where the Public Trustee is managing the property).  3.3% commission is charged on rental income where the Public Trustee is not managing the property.

    Investment Management Fee

    A 1.1% investment management fee may apply to invested funds not directly managed by the Public Trustee.

    The following fees and charges may apply: 

    • account keeping fee ($13.50 per month);
    • domestic cheque drawing ($6.00) and direct credit ($3.20);
    • international bank transfers ($24.00) and international bank drafts ($32.00), excluding any 3rd party transaction and processing fees;
    • investment review fees for developing an investment strategy for the client portfolio. The fee charged is dependent upon the complexity of individual circumstances;
    • depending on the complexity of the matter a fee will be charged for the preparation and lodgment of income tax returns and other taxation services including the establishment of the acquisition details of assets for capital gains tax purposes;
    • fee for conveyancing and other services provided in relation to the sale, purchase or transfer of a property; and/or
    • work of a particularly complex nature not covered above will be charged at an hourly rate.

    Legal Services

    Services provided by our legal practitioners are charged at a rate determined by the Public Trustee but not exceeding the maximum hourly attendance rate set out in the Supreme Court Rules 2000.

    More Information

    For more information about our potential out-of-pocket expenses, please download our Out of Pocket Expenses information sheet.

  • Estate Administration FAQs

    We have compiled a list of some frequently asked questions (FAQs) about estate administration.

    If you have any further questions relating to estate administration, please contact your nearest Public Trustee branch or call 1800 068 784.

    • Intestacy – No Will

      If you die without making a valid Will, this is called dying “intestate”. State law will then determine how your estate is distributed. Unfortunately, this often means that your estate isn’t distributed according to your wishes.

      In Tasmania, distribution is made following the Intestacy Act 2010 formula. In order for the estate to be administered somebody needs to apply to the Court for authority, similar to Probate. This authority is called Letters of Administration and the person authorised is the administrator.

      The administrator that the Court selects may not necessarily be the person who you would have selected if a Will was made. The duties of an administrator are similar to an executor and can include paying debts, collecting assets, finalising tax affairs and distributing the assets in accordance with the Intestacy Rules. The administrator must establish the family tree using certificate evidence which may be an expensive and time-consuming task depending on who are the next of kin or if they live overseas.

      The Public Trustee can take on this role if next of kin agree to the appointment, but the Public Trustee is not automatically assigned to take on the administrator's role.

      Looking after intestate matters can be a complicated process. The Public Trustee can administer estates when someone else is appointed executor but asks us to take over their role. For those estates where family members are widely scattered or are not close, our genealogy services are highly successful in tracing relatives.

    • What is an executor and what do they do?

      An executor is responsible for the administration of an estate and for carrying out the wishes set in the Will. Being an executor can be a complicated job and requires legal and financial understanding to do it successfully. That’s why many people prefer to appoint professionals such as the Public Trustee, rather than leaving the difficult task to their loved ones.

      If your executor acts inappropriately or is not administering the estate carefully and prudently, your beneficiaries can complain to the Supreme Court. This is the only right your beneficiaries will have before your estate is distributed. Also, if your executor obtains an estate by fraud or retains an estate, they can be liable to account to your beneficiaries for the assets of your estate.

      There are many steps involved in being an executor.

      The duties of an executor may include:

      • locating the Will;
      • making funeral arrangements;
      • meeting with family, legal and business associates;
      • determining the beneficiaries;
      • protecting assets such as ensuring property is insured, business interests are protected, collecting valuables and investing funds;
      • determining assets and debts (prepare statement of assets and debts);
      • applying to the Supreme Court for a grant of Probate of the last Will (Probate is a formal document that confirms the executor and gives them permission to administer the estate);
      • collecting assets;
      • making sure all claims and debts are received, assessed and paid if substantiated;
      • distributing assets according to the terms of the Will, including managing longer term trusts;
      • preparing and managing accounts;
      • preparing and lodging taxation returns;
      • defending litigation if there are any disputes.

    • Why should I appoint Public Trustee as my executor?

      Being an executor is a complex and time consuming task, it is wise to appoint a professional executor such as the Public Trustee. This minimises the workload and burden on your family and friends at a difficult time.

      The Public Trustee is an expert in estate administration and provides a full range of executor services. With our professional estate managers, accountants and solicitors we are a ‘one stop shop’ for estate administration and are equipped to deal with any issue that may arise.

      Benefits of appointing the Public Trustee as your executor

      When you appoint the Public Trustee as executor by making your Will with us, you can have peace of mind knowing that we will administer your estate fairly, impartially and in the best interests of all concerned.

      We keep beneficiaries informed of the progress during your estate administration, explaining, understanding and consulting with them before any major decisions are made.

      • We carry out your instructions and your dedicated client account manager will ensure the well-being of your beneficiaries is our first concern;
      • We work with banks, insurance companies, real estate agents and all organisations connected with your assets. We arrange payment of any outstanding bills and collect any money that is owed to your estate. If you own a business we will arrange for it to carry on or be sold according to your instructions and in accordance to the law.

    • How long will the administration of an estate likely take?

      This is the most commonly asked and often the most difficult question to answer, due to the circumstances of each estate being unique. Generally the estate administration process can take between 6-12 months. However, this can sometimes take more time depending on the complexity of the estate. The administration process can be quite complex and could involve our team of solicitors and accountants.

      The Public Trustee are consultative and will keep your beneficiaries informed during the progress of your estate administration. Our team will explain the situation and consult with them before any major decisions are made. However, your wishes will always be our paramount concern.

      In our experience, we have found that the process works best with open communication between families. This is to ensure that a common knowledge and understanding is achieved when distributing your assets.

    • What does the Public Trustee fee cover?

      Public Trustee fees for executor services include the work required to obtain a grant of probate or administration, and the work to administer and distribute the estate. Our fee is based on the value of solely owned assets in the estate. Joint assets such as your home or bank accounts will not attract a fee. Click here to see our fee 

       

      Our fees cover the following steps which are involved in settling an estate. 

      • confirming the Will is valid;
      • meeting with the beneficiaries; 
      • certifying entitlements in the estate; 
      • preparing an administration plan; 
      • preparing applications to the court (for the grant of probate or letters of administration); 
      • liaising with banks to get asset details; 
      • arranging asset valuations and inventories; 
      • sorting out debts; 
      • managing the sale or distribution of assets;
      • preparing a final statement; and 
      • sorting estate records. 

    • Does the Public Trustee automatically sell all the assets in a deceased estate?

      No, the Public Trustee doesn’t automatically sell all the assets in a deceased estate. Before any assets are sold, there will be extensive discussion between your beneficiaries and our team. In some instances, assets such as the family home are not sold; they are transferred directly to the beneficiaries. If a Will requests that real estate is sold, we obtain a valuation and advice from real estate agents to ensure the best possible price. Your beneficiaries will be kept updated and given ample opportunity to provide their feedback regarding the sale process.

      How will you involve my beneficiaries?

      We will arrange a meeting with your beneficiaries to discuss the administration. At this meeting your beneficiaries will receive a copy of your Will. Beneficiaries who are unable to attend this meeting are sent a copy of the Will. This meeting is where we allocate a dedicated client account manager to manage your estate. Your beneficiaries will have direct contact with the same account manager throughout the administration of your estate.

    • What is Probate?

      Probate is essentially an official recognition that a Will is legally valid and gives permission to proceed with administering the estate. An application for a grant of probate is made at the Probate Registry of the Supreme Court. The grant is a document certifying that the Supreme Court recognises the authority of the executor or executors to deal with the estate. The executor can then administer the Will, for example collect assets, pay debts of the deceased and distribute the estate as directed.

      If you die without a Will, the grant is called ‘Letters of Administration’.

    • What are Letters of Administration?

      If you are to die without a Will (intestate) and there is no executor to administer the estate, usually it is your next of kin who will apply for a document called ‘Letters of Administration’. Letters of administration is the Court’s approval for someone to administer the estate of a person who dies without a Will.

      In most instances, Letters of administration will be granted to your next of kin e.g. a spouse, domestic partner or child. Alternatively, if you have left a valid Will but your named executor is no longer alive, competent or willing to undertake the responsibilities involved with administering your estate, the Court may appoint someone else e.g. a beneficiary, to administer your estate according to the Will. This is called Letters of Administration with the Will annexed.

    • What is the difference between assets held jointly or as tenants-in-common?

      Assets jointly held known as ‘joint assets’ do not form part of your estate; they pass by survivorship to the surviving person. Assets held as ‘tenants-in-common’ are only partly owned and can be bequeathed (given) to a nominated beneficiary under your Will.

      For example, if a husband and wife own a home as ‘joint tenants’, when one spouse passes away the house would automatically go to the remaining spouse under the survivorship rule.  However, if siblings own a block of land as ‘tenants-in-common’ they can leave their share to whomever they like – it would not automatically pass to each other.

      There are two ways assets can be passed on:

      ·         one is via survivorship (jointly owned assets);

      ·         the other is through full estate administration. This is where the assets are fully owned by the deceased and passed on in accordance with their wishes.

    • How do I obtain Probate?

      To obtain a ‘Grant of Probate’, the executor must file various legal documents at the Supreme Court. The documents required include: the original Will, the death certificate and a complete statement of all assets and liabilities of the estate.

      For more information go to: www.supremecourt.tas.gov.au/probate

      Do you need help administering an estate?

      If you are unsure about whether you can achieve all that is asked of you as executor, it makes sense to get help. Remember, it is unlikely the person who has died would have wanted to put you in a difficult or stressful situation.

      The Public Trustee are experts in estate administration and provide a full range of executor services with professional estate managers, accountants and solicitors. We are a ‘one stop shop’ for estate administration and are equipped to deal with any issue that may arise.

      If you are interested in referring an estate matter to us, please contact your nearest Public Trustee branch or call 1800 068 784.

    • How do I renounce my executorship?

      Many people appoint a friend or relative as their executor, as a way of acknowledging their respect or admiration for that person. However, the reality is that often people can be left with the burden of a loved one’s estate, during a time of grief and distress. Even being the executor of a simple estate can take a considerable amount of time. Being an executor requires knowledge of areas such as law, accounting, business management and finance. This can be an extremely difficult task for an everyday person without this knowledge.  As an executor you may be liable if any issues arise during your management of an estate.

      Just because you have been nominated as the executor does not mean you have to accept the role. Taking on the responsibility may not be the right thing for you and it is unlikely that the person who nominated you would have wanted to put you under stress. You are under no legal obligation to accept the appointment. If you don’t wish to act as executor you can ‘renounce’ and transfer the role to an independent professional executor, such as the Public Trustee.

      Once a person has obtained a grant of probate, it is generally not possible for that person to renounce the appointment.

    • What are the Public Trustee Service Standards?

      The Public Trustee has adopted the following standards in communicating with our clients.

       

      RETURNING TELEPHONE CALLS

      • When you leave a message we will return your call promptly, but in any event within one working day of receipt of the message

      • Voicemail messages will state if the person you are calling is away for more than one working day and will provide an alternative contact number

      • We will make every effort to provide you with a response as quickly as possible

      • If we are unable to deal with your query we will try to put you in contact with someone who can assist you

         

      RESPONDING TO LETTERS, EMAIL AND FAX

      • We will reply to non-urgent correspondence within 10 working days

      • We will contact you to inform you of progress if a final reply is not issued within 10 working days

      • We will reply to urgent correspondence where possible on the same day, but in any event within 1 working day

      • We will communicate clearly providing you with a response to the matters raised.

         

      FACE-TO-FACE CONTACT

      • We will ensure that our reception and meeting facilities are clean, accessible and maintained to a high standard of comfort and safety

      • We will provide you with the maximum level of privacy possible

      • We will meet you at the appointed time, or let you know if there are any delays and be helpful and courteous in our dealings with you

      YOUR VIEWS ON OUR SERVICE

      The Public Trustee places a high level of value on feedback from our clients and also has a formal policy for dealing with any concerns or complaints.

      To provide feedback PLEASE CLICK HERE TO GO TO THE FEEDBACK AND COMPLAINTS PAGE

    • Who may challenge a Will?

      The validity of your Will can be challenged on several grounds. These can include:

      • failure to meet the formal requirements of a Will – such as being signed by the testator and two witnesses;
      • the Will maker (testator) was not of sound mind;
      • the testator was unduly influenced or pressured by another person/s when making the Will – this is called duress. 

      In Tasmania, if someone dies and their dependants feel that they are left ‘without adequate provision for proper maintenance and support’ they can make an application for further advancement under the Testators Family Maintenance Act 1912. However, only the following people can make a claim:

      • surviving spouse or partner of deceased;
      • children of the deceased, including adopted and stepchildren;
      • parents of the deceased, if the deceased had no spouse or children; and
      • a divorced spouse or ex-partner who is receiving or entitled to receive maintenance from deceased at the date of death. 

      What matters may the Court take into account?

      • The total value of the deceased’s estate;
      • the circumstances and needs of the claimant;
      • whether by current community standards the deceased had an obligation to provide for the claimant;
      • the means and needs of competing beneficiaries and claimants;
      • the character and conduct of the person making the claim;
      • the nature and quality of the relationship between the claimant and the deceased;
      • the reasons of the deceased, as far as they are ascertainable, for leaving his or her property in a particular way.

      A claim must be started within three months after the date of probate or letters of administration is granted. However, this period may be extended by the Court.

      Being in the class of people who can challenge does not mean that they will be successful. You should talk to our staff about what you can do to minimise the chance of someone challenging your Will.

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