Managing a deceased estate means dealing with a mountain of paperwork. It’s worth taking the time to organise everything properly. Well-sorted documents make the whole process much easier. Follow these tips to get things in order:
What documents do you need to gather?
You need every document that shows what the deceased owned and what they owed. Some of it will only arrive in the post over the following months, so this isn’t a single sitting. See Protecting assets: an executor’s first steps in WA.
Start a file with:
- the original Will, plus any codicil – keep these safe. Don’t hole punch or staple them as this may cause issues for your probate application;
- the death certificate and the funeral director’s invoice;
- date of death statements for every bank account, term deposit and credit card;
- the certificate of title, rates notices and insurance policies for any real estate;
- share holding statements and dividend statements;
- superannuation and life insurance correspondence, including any binding nomination;
- the last tax return lodged and anything from the Australian Taxation Office (ATO); and
- loan documents, unpaid invoices and Centrelink or pension correspondence.
Why does it matter what things were worth on the day of death?
When you apply for a Grant of Probate, you must include a statement of the estate’s assets and liabilities as at the date of death. Write to each bank and each fund for the balance as at the date of death rather than as at today. Ask for it in writing.
You can check the ASX to see what shares were worth on the date of death to calculate the portfolio value. For real estate, come up with a realistic estimate or obtain an appraisal or valuation to help you.
How should you record what you find?
You should create a schedule listing each asset and each liability, what it was worth on the day of death and how far you have got with it. You can keep a handwritten list or fill in our checklists as you go so you have the information ready for your application for a Grant.
Keep estate money separate from your own
Open an account in the name of the estate once you have the grant. Every estate receipt goes into that account and every estate expense comes out of it.
You must keep all estate money separate from your own. You’ll need to be able to show, item by item, what came in and what went out.
If you aren’t sure whether the estate needs a grant, see Do you need a grant?. For what the application involves, see How to apply for probate in Western Australia.
What paperwork does the administration itself create?
The file keeps growing after the grant, because every step of the administration produces documents you have to keep.
Collecting the assets in. You send a copy of the grant to each bank and each registry so that accounts can be closed and holdings transferred. Each of them sends back a closing statement and that statement is your evidence of what actually came in.
Paying what the estate owes. The funeral and the estate’s debts are paid before anybody receives anything. Keep the invoice for each one, as you may need to produce evidence to support the estate’s payments. You may also need to provide these to the estate’s accountant to prepare the final tax returns.
Tax. Any outstanding returns for the deceased have to be lodged. The estate lodges its own return as well if it earns income during the administration.
Distributions. You should get the beneficiaries to sign off on the estate’s accounts before you make distributions, or otherwise file the estate’s complete accounts at the Court. See What is passing of accounts in Western Australia?
How do you stay on top of it?
Managing an estate can be a big job. Stay on top of it by filing each document as it arrives rather than in a batch at the end. The estate’s paperwork comes in over months, so update your records as you go, while you still remember what each item was for. You won’t get all of it done in the first few weeks and you aren’t meant to. What matters is that when the accountant or a beneficiary asks a question, the answer is in the file rather than in your memory.
Frequently asked questions
Do you have to pass accounts in every estate?
No. Plenty of estates are administered and distributed without accounts ever being passed. In practice accounts are passed on request by a beneficiary or the Court. If the Court asks you to produce the accounts you are legally required to comply.
Can you pay the funeral account before the grant?
Yes, in most cases. Most major banks will release funds from the deceased’s account for funeral expenses before any grant issues. Ask the bank what it needs.
Can somebody else do the paperwork for you?
Yes. You can hand the administration to us. We’ll take care of all the details, prepare all the forms and documents for you to sign and manage the estate for you.
How we can help
We can complete the administration for you and take the paperwork off your hands. Call the probate team on (08) 9220 4490 or see our estate administration page.
Related: What are the duties of an executor in Western Australia?
This article contains general information about administering a deceased estate in Western Australia. It is not legal advice. You should obtain advice about your own circumstances before you act.
