Executor of a Will? These 3 Mistakes Could Cost You
Being named executor of a Will comes with more responsibility than you might think.
From managing assets to distributing an estate, there are some important steps to get right. And getting them wrong can lead to delays, complications and, in some cases, personal financial consequences.
In this short video, Joe shares three things every executor should know before distributing an estate.
If you're an executor, or may be one in the future, this is worth watching.
Working with you,
The Millens Team
Joe Sweeney:
Hi. Being the executor of a deceased estate carries serious responsibilities. In this video, I mention three things we tell our clients to help them in their role.
The first thing is to ensure that you have the legal authority to distribute the assets of the estate and not to distribute the assets of the estate before you have that legal authority. In a previous video, I mentioned that that legal authority is called a grant of probate. An application to the court needs to be made to obtain that. So that's the first key step in the process to complete.
The second thing is when you are applying to the court for that legal authority, you need to include the correct values of the assets of the estate as at the date of death of the deceased. If you don't state the correct values of the assets, this can cause delays to obtaining the grant of probate and can also potentially cause complications when considering tax obligations of the estate down the track.
The third thing is to not distribute the assets of the estate too quickly. Even after a grant of probate is made, eligible family members and creditors may be able to bring a claim against the estate if they think they ought to have been provided for. And if their claim is successful, but the assets have already been distributed, in this case, sometimes the executor can be required to make up the shortfall themselves, which is not something any executor wants to find themselves in.
So those are the three things we would encourage you to stay mindful of when you are in the role of executor. And if you are an executor of a deceased estate, we would be glad to help you. We enjoy holding your hand through this process. So reach out to me, Joe here at Millens and anyone from the Millens team, we're happy to help you.