The role of an executor of a will is a significant responsibility, involving various legal and administrative duties to ensure the deceased’s estate is managed and distributed according to their wishes. Here are the primary obligations of an executor:
- Locating the Will: The executor must locate the most recent will of the deceased and ensure it is valid. This involves checking for any codicils or amendments.
- Applying for Probate: Executors are responsible for applying for a grant of probate from the Supreme Court. This legal process confirms the will’s validity and the executor’s authority to administer the estate.
- Identifying and Valuing Assets: Executors must identify all assets and liabilities of the deceased, including property, bank accounts, investments, and personal belongings. They must also obtain valuations for these assets.
- Paying Debts and Taxes: The executor is responsible for settling any outstanding debts and taxes owed by the deceased. This includes filing the final tax return and ensuring all liabilities are paid before distributing the estate.
- Distributing the Estate: Once debts and taxes are settled, the executor distributes the remaining assets to the beneficiaries as specified in the will. This may involve transferring property, liquidating assets, or setting up trusts.
- Managing Estate Accounts: Executors must keep detailed records of all transactions related to the estate, including income, expenses, and distributions. These records should be available for inspection by beneficiaries.
- Communicating with Beneficiaries: Executors have a duty to keep beneficiaries informed about the estate’s administration and any significant developments. This includes providing updates on the probate process and distribution timelines.
- Handling Disputes: If disputes arise among beneficiaries or other parties, the executor may need to mediate or seek legal advice to resolve these issues.
- Renouncing the Role: If an executor is unwilling or unable to act, they can renounce their role by preparing a formal renunciation document and lodging it with the Supreme Court. This process is outlined in section 34 of the Administration and Probate Act 1958 (Vic).
- Fiduciary Duty: Executors have a fiduciary duty to act in the best interests of the estate and its beneficiaries. This includes avoiding conflicts of interest and ensuring fair and impartial administration.
Being an executor is a demanding role that requires diligence, transparency, and adherence to legal obligations. Executors should seek legal and financial advice if they are uncertain about any aspect of their duties to ensure they fulfil their responsibilities effectively.