Understanding the Estate Administration Process: Key Steps and Timeframes

Navigating the estate administration process can feel overwhelming, especially during a time of loss.  It can sometimes be a stressful and time-consuming process, but with the right assistance it doesn’t need to be.

Whether you’re an Executor or Administrator, understanding the key steps and expected timeframes for administering an Estate can help streamline and simplify the process.  We’ve put together this guide to explain the common steps, requirements, and timeframes for administering an Estate in order to answer some of the questions that our lawyers frequently get asked. We’ve broken down the estate administration process into four key steps.

The below guide includes the steps and timeframes applicable to applying for a Grant of Probate (if there is a Will) or Grant of Letters of Administration (if there is no Will), but a Grant may not always be required depending on the circumstances of each estate. Your lawyer will be able to confirm for you whether a Grant is required or not when you first meet with them.

Step 1: Obtain Estate Information

Following the passing of a loved one, there is not much that can be done until the death certificate has been issued.  Once that is at hand, the Executors (if there is a Will) or the Next of Kin (if there is no Will) should meet with a lawyer to provide instructions for the Probate/Letters of Administration process to commence.

The first step in administering an estate is then to gather all necessary information about the deceased’s assets, liabilities, and any relevant documentation.

1. Initial Meeting with Executors/Administrators:
   Schedule an initial meeting with a lawyer to discuss the estate, clarify roles and responsibilities, and outline the estate administration process.
2. Notify Organisations of the Deceased’s Passing:
   Inform banks, insurance companies, superannuation funds, and any other relevant organisations (such as those that have direct debits set up) about the death so they can put a freeze on any accounts or payments.

3. Verify Asset & Liability Information:
   Contact all the relevant asset holders to confirm the nature and extent of the deceased’s assets and any outstanding liabilities. This step ensures you have an accurate financial picture of the estate, as this information will be required for inclusion in the Inventory of Assets and Liabilities which gets filed with the Court as part of the application for Probate or Letters of Administration (if required).
4. Publish Advertisement Online with the Court:
   An advertisement must be published online with the Supreme Court of Victoria to notify potential creditors of the estate. The advertisement also serves as a public notice of the impending estate administration, which can be helpful in case someone finds a newer Will for the deceased person and needs to contact the person who has published their intention to apply for Probate of an older Will.

The advertisement must be published online with the Court at least fourteen (14) days before the application for Probate or Letters of Administration can be filed.

Timeframe: Step 1 typically takes around 6 to 8 weeks.

This is on the assumption that the Executors/Administrators have all the required documents and information ready to go at the time of the initial meeting. It can also sometimes take several weeks for asset holders (such as banks) to reply with the information required for the Inventory, which can extend this timeframe.

Step 2: Prepare and Lodge Application

Once you have gathered all the necessary information, it’s time to prepare the application for Probate or Letters of Administration.

1: Prepare the Application:
This involves compiling all required documents and information to create the formal application for the Supreme Court of Victoria.  The application takes the form of an Affidavit, with several annexures, including the Inventory mentioned above.

2: Sign the Application with Executors/Administrators:
All the Executors/Administrators must review and sign the application.

3: Lodge the Application with the Supreme Court:
File the application, including the original Will (if applicable), with the Supreme Court of Victoria.

The application itself is filed online via RedCrest, but the original Will (if applicable) must be posted to the Court for lodgement. The Court will not review the application until the original Will is received at the Probate Office.

4: Wait for the Court to Issue the Grant:
This step alone can take up to 4 weeks, but it may take longer if the Court has questions or requires additional documentation in support of the application.

Sometimes, if the application is relatively straightforward (and especially with applications for Letters of Administration) the Grants can be made relatively quickly, sometimes within the same week as lodgement.

Timeframe: Step 2 typically takes around 4 to 6 weeks.

As noted above, this timeframe may be extended if the Court has particular questions, or requires further information, in respect of the application before issuing the Grant. Common reasons for the Court to delay the issuance of a Grant, by requesting further information or evidence, can include:

• Issues with the deceased person’s testamentary capacity at the time of signing the Will
• Issues with how the Will was signed (which may result in the Will being considered ‘informal’)
• Issues with the condition of the original Will itself (e.g., if the paper has been damaged in some way)

Step 3: Administer the Estate

Once the Grant of Probate or Letters of Administration has been issued by the Court, the next phase is to administer the estate.

1: Notify the Executors/Administrators and Beneficiaries:
Inform all parties involved that the Grant has been issued. This step ensures everyone is on the same page regarding the administration process and the next steps that must be completed.

2: Redeem the Assets of the Estate:
Present the Grant to banks, share registries, super funds and other relevant asset holders to call in the deceased’s assets. If you have engaged a lawyer to handle the administration of the estate, then any funds redeemed will normally be paid into their firm’s Trust Account.

Some assets, such as shares, may need to be transferred into the names of the beneficiary/ies (rather than liquidated and called in as cash) depending on their instructions and preferences.

3: Sell or Transfer Estate Properties:
If applicable, take action to sell any real estate property that belonged to the deceased.  Otherwise, such real estate property/ies can be transferred to the beneficiaries of the Will (depending on their instructions and preferences).

Timeframe: This step can vary greatly, with the timeframe for completion often indeterminable due to the complexities involved, such as the number of assets to be redeemed or the volatility of the property market.

Step 4: Distribute and Finalize the Estate

The final step involves paying any outstanding estate debts and expenses, and thereafter distributing the estate according to the Will (or the laws of intestacy, if there is no Will).

1: Finalise the Deceased’s Tax Affairs:
Ensure all tax obligations are settled, which may involve filing final personal tax returns or a return on behalf of the Estate.

2: Pay Outstanding Debts and Estate Expenses:
Arrange payment of any outstanding debts and reimbursements, as all financial obligations of the estate must be paid in full before funds can be distributed to the beneficiary/ies.

This step is crucial, as if the estate is distributed prematurely and a debt or liability is later discovered, the Executor/Administrator may be personally liable to pay such amount if there are no funds left available to the estate to repay same.

3: Obtain Beneficiary Releases and Bank Account Details:
Collect necessary information from beneficiaries, including bank account details, so their entitlement can be paid to them.

It is also standard to have beneficiaries sign a Probate Statement and a Deed of Release before distributing their inheritance to them.  These documents verify the administration of the estate (i.e., what assets were redeemed, what debts were paid, and what the balance of the residuary estate is that is available for distribution to the beneficiaries) for both the beneficiary and Executor’s records.

4: Distribute the Residuary Estate:
Once all debts and financial obligations are settled, the remaining assets will be distributed according to the terms of the deceased’s Will (or in accordance with the laws of intestacy, if there is no Will).

Timeframe: Step 4 typically takes around 6 to 8 weeks to be completed, assuming all paperwork is in order and the beneficiaries are cooperative.

It is important to note that, when distributing the estate, it is normal for assets to not be distributed until six (6) months from the date the Grant was issued has passed.  This is because potential claimants against the estate have six (6) months from the date the Grant was issued to come forward and file a claim, if they are seeking greater provision from the estate (commonly referred to as a Part 4 / Part IV claim).

The abovementioned timeframe therefore reflects the time that it takes to actually finalise and arrange distribution of the estate after this six (6) month period has lapsed.

Conclusion

The estate administration process involves multiple steps and can be time-consuming. By understanding the key phases and typical timeframes involved, Executors and Administrators can navigate this process more effectively.  It’s always advisable to seek legal guidance to ensure compliance with all regulations and to handle any complexities that may arise during the administration of an estate.

At Coulter Legal, we can provide you with personalised, expert advice to ensure that any estate matter is dealt with as efficiently and stress-free as possible.

Should you wish to discuss any of the matters raised in this article, or to make an initial Probate or Letters of Administration appointment with one of our lawyers, please contact our Wills, Estates & Succession Planning team on (03) 5273 5273.