What is Estate Administration
What is Estate Administration?
In short, Estate Administration is the process of carrying out the wishes you lay out in your Will by making sure your estate is distributed effectively and to the right people.
At some stage, we all experience the death of someone near and dear to us, but few of us are fully aware of the estate management and administration process, including executing an estate. This can be particularly difficult if you are called upon to assist with the many matters that require attention following a death. This page details what is involved in Estate Management and administration process.
Who can be your executor?
When you give instructions for your Will, you have to choose an executor. They’re the ones legally responsible to administer your estate, so it’s an important choice.
You can appoint one or more people to act as executor – the only restrictions are that they need to be over 20 years old and of sound mind.
Some common options are:
- Your partner or spouse;
- Family members or friends; or
- Lawyers and/or accountants.
You can also appoint a trustee company, such as Perpetual Guardian.
What is involved?
A lot goes into administering an estate. Some of the key steps are :
- Locating your last Will;
- Obtaining authority from the High Court to administer the estate – this is called a Grant of Administration;
- Identifying and dealing with all your assets;
- Identifying all possible claimants;
- Paying all debts and liabilities;
- Meeting any tax obligations;
- Allocating the estate to your beneficiaries (you name them in your Will); and
- Accounting to your beneficiaries by preparing and providing financial statements.