Executor duties in Victoria

The named executor's task is to locate and follow the will, protect estate property, identify assets and liabilities, obtain a grant if required, collect estate assets, settle proper debts and distribute the balance according to the will and applicable law. The Supreme Court's probate guidance explains the grant process. A grant of probate recognises the will for the purpose of the grant and confirms authority; it does not conclusively prevent every later dispute.

Begin by searching for the most recent original will and codicils. Find out whether the deceased owned Victorian land solely, as a tenant in common or jointly. Ask banks and other asset holders if they need a grant. The Court says Victorian land held solely or as tenant in common requires one; a surviving joint proprietor follows a different land process. Not every estate needs a grant, and urgent protection, such as securing and insuring property, need not all wait for it.

If you are not willing or able to accept the role, consider that promptly. An executor who does not apply may be able to renounce, but acting in the office or intermeddling may affect that option. Obtain advice before taking steps beyond what is reasonably necessary to preserve the estate. Where an admissible will exists but no named executor can or will apply, the alternative may be letters of administration with the will annexed, not a new executor appointed informally by the family.

Protect the property and follow the will

Secure keys and records, maintain suitable insurance, manage vacant or income-producing property and prevent avoidable loss. Take reasonable care when retaining, investing, managing or realising assets; what is prudent depends on the estate, the will and the beneficiaries' interests. A personal preference to keep or sell an asset cannot replace the legal task of administering it. Do not use estate money for personal expenses.

Identify liabilities, including tax

Prepare an inventory of assets and liabilities, investigate creditor claims, reconcile bank statements and account for receipts and payments. The Administration and Probate Act 1958 (Vic), section 28, addresses a personal representative's inventory and accounts when lawfully required. Keep supporting invoices, valuations and explanations, not simply a final balance. The deceased may need a final income tax return and the estate may need trust tax returns for income earned after death; seek tax advice when required. Australia has no general inheritance tax, but that is not an exemption from tax on income or gains.

Act impartially and manage conflicts

An executor may also be a beneficiary. That does not permit an undisclosed advantage over others. Treat different beneficiaries according to their entitlements, check whether a proposed purchase by the executor or an associate creates a conflict, obtain independent valuations where appropriate and keep decisions transparent. An executor should not self-authorise a transaction on favourable terms merely because the estate is small.

For the operational sequence from asset collection to final accounts, see estate administration in Victoria. The duty to maintain records continues through the distribution. There is no blanket requirement that every executor keep every record for exactly seven years; relevant tax, legal, professional and risk obligations determine what to keep and for how long.

Co-executors generally exercise their role together. They can allocate practical tasks, such as liaising with a bank or collecting statements, but an informal division of labour does not necessarily remove a co-executor's responsibility for estate decisions. Record agreed tasks, consult on important decisions and do not submit documents suggesting agreement where there is a genuine deadlock.

If one named executor has died, lacks capacity, is unavailable or wishes to renounce, identify the proper Court pathway before another person applies. Renunciation is usually considered before acting in the office; involvement beyond necessary protective steps can complicate it. After significant involvement or appointment, stepping down, discharge or removal is a different question and may require a Court process rather than a simple renunciation.

Where a co-executor cannot agree on an asset sale, payment or grant application, seek advice early. Depending on the issue, options may include reaching an agreed method of administration, obtaining directions or asking the Court to determine a representative's position. Do not assume a deadlock allows one person to proceed unilaterally.

Responsibility is not limited to dishonesty. Personal exposure may arise if an executor distributes before paying or providing for tax and debts, ignores a known claim, sells an asset without proper authority, favours themselves, makes an unauthorised payment, fails to insure or protect property, or allows avoidable loss through delay. Whether liability actually arises depends on the facts and applicable duties; these are warning signs, not a claim that every imperfect decision creates liability.

• Premature payment: leave an adequate reserve for known and reasonably foreseeable expenses, tax and claims.
• Property risk: maintain insurance and security, and document decisions about occupancy, sale and valuation.
• Conflicts: disclose and obtain advice before the executor or an associate buys or benefits from an estate asset.
• Accounting: trace every receipt, reimbursement and payment; do not mix estate and personal funds.
• Disputes: stop and seek advice if a caveat, will challenge, family provision claim or contested liability emerges.

Under section 99 of the Administration and Probate Act 1958, a family provision application must generally be made within six months after the grant; the Court may extend time on an application made before final distribution. Six months is not automatic permission to distribute. A foreshadowed claim or unresolved debt calls for assessment even when the ordinary period has run. The costs guide distinguishes proper estate expenses from other legal costs.

Being named executor does not automatically entitle a person to payment for time or effort. A will may include a charging provision, informed agreement by affected beneficiaries may be effective in an appropriate case, or the Court may allow commission. The Act's sections 65–65E govern the relevant commission and remuneration framework. Do not apply a simple percentage to the estate: the basis, authority and reasonableness must be examined in the particular circumstances.

Reimbursement for proper estate-administration expenses reasonably incurred is different from remuneration for labour. Keep receipts for Court filing fees, insurance, necessary travel or other legitimate expenses, and check whether an expense was incurred for the estate rather than for personal benefit. Where the executor also performs paid professional work, distinguish that engagement and its costs from executorial remuneration.

Tell interested beneficiaries what payment is proposed, the basis for it and how it affects their shares. If entitlement or consent is contested, obtain independent advice before paying commission to yourself. A legal costs disclosure for retained professional services and the executor's personal entitlement to remuneration are separate questions.

Beneficiaries need enough appropriate information to understand material decisions and the progress of administration, but their individual rights depend on their interest, the stage reached and the circumstances. Keep proper accounts even if nobody has asked for them yet. Give factual updates: what is complete, what the estate is waiting for and what remains uncertain. Do not promise a distribution date while tax, a land sale or a claim is unresolved.

Warning signs include a missing or altered will, disagreement about capacity or witnesses, unequal access to property, competing executor instructions, a disputed valuation, a claimed unpaid loan, a beneficiary asking for early payment despite creditors, or a threatened family provision application. These issues deserve timely legal assessment so that evidence and applicable time limits are identified before irreversible steps are taken.

If the estate may be insolvent, do not distribute to beneficiaries or prefer creditors without advice about the applicable rules. Independent advice is particularly valuable when the executor is also the person proposed to receive or buy an estate asset. Advice can be on a defined issue; it is not a requirement that every executor retain a lawyer for the whole administration.

A question may concern whether to accept the role, whether a grant is needed, an account a beneficiary has requested, a potential conflict, or a disputed liability. The enquiry page lets you describe the stage reached and the decision you face. If you need to understand the Court application itself, start with probate in Victoria; where no will can be admitted, read letters of administration.