Losing a loved one is one of the most challenging experiences any of us will face. The emotions can be overwhelming, and the practicalities of managing their deceased estate can feel daunting. At Copeland Estates Legal, we understand how important it is to support families during these difficult times. This guide will walk you through the steps to take when a loved one passes away, offering compassionate and practical advice to help you navigate this challenging period.
Immediate steps to take when a loved one dies
Notify family and friends
The first step after losing a loved one is to notify close family and friends. This is a difficult task, but sharing the news with those who need to know is essential. You may also need to inform employers or colleagues, particularly if they were still working.
Contact a funeral director
One of the immediate tasks is to contact a funeral director. If your loved one passed away in a hospital or aged care facility, they will often ask for this information quickly. The funeral director will help you with the necessary arrangements and paperwork, including applying for a death certificate. They can also guide you on what details are required, such as your loved one’s full name, date of birth, and any specific wishes they had for their funeral.
If your loved one had any specific wishes for their funeral or burial, these should be honoured. Their Will might include instructions regarding their funeral or cremation preferences, so it’s important to review it as soon as possible.
Obtain the death certificate
The funeral director will usually arrange for the death certificate, but you’ll need to ensure the doctor signs off on the medical cause of death certificate before this can be applied for. The death certificate is essential for many legal and financial tasks that follow.
Executor’s role and responsibilities in a deceased estate
If you’ve been named as the executor in your loved one’s Will, you have a significant responsibility. Your role is to manage their estate according to the instructions in their Will and the law. Here’s what you’ll need to do:
Locate the Will and other important documents
The first step is to find your loved one’s original Will. This document outlines their wishes for how their estate should be handled. You may also need to locate other important documents, such as trusts or insurance policies. If you’re unsure where the Will is, check with the law firm that prepared it, the Public Trustee, or their bank.
Secure estate assets
As the executor, it’s crucial to secure your loved one’s assets as soon as possible. This might involve changing locks, redirecting mail, or securing valuable items. You should also notify insurance companies to update policies and protect the estate against any potential losses. If your loved one owned valuable items like jewellery or art, consider taking out additional insurance to cover these items.
Notify relevant parties
You’ll need to inform various organisations about your loved one’s passing. This includes government agencies like Centrelink, Medicare, and the Australian Taxation Office, as well as financial institutions, insurers, and service providers. Some funeral directors offer to notify Centrelink and Medicare on your behalf, so ensure you have your loved one’s details ready.
You can also use services like the Australian Death Notification Service to notify multiple organisations at once. This can be a convenient way to ensure that all necessary parties are informed.
Managing the deceased estate
Managing your loved one’s deceased estate involves several critical tasks that you’ll need to oversee as the executor.
Gathering and inventorying estate assets and liabilities
You’ll need to gather and inventory all of your loved one’s assets and liabilities. This includes everything from real estate and bank accounts, superannuation and insurance to personal belongings and investments. It’s essential to document everything thoroughly and obtain professional appraisals for valuable assets if necessary.
Applying for a Grant of Probate
Probate is a Court Order that confirms the validity of your loved one’s last Will and grants you, as executor, the authority to manage the estate. Depending on the complexity of the estate, this process can vary in length. It’s essential to seek legal advice from an experienced estates lawyer to understand your responsibilities and the steps and timeframes involved to ensure everything is handled legally and correctly
Handling estate debts and liabilities
Part of managing the estate involves settling any outstanding debts. This includes paying off loans, credit cards, and any other liabilities your loved one may have had. You may also need to cover ongoing expenses, such as mortgage payments or utility bills, until the estate is finalised, although creditors are generally understanding of deceased estates and will generally be happy to give some leeway.
Paying estate taxes
As the executor, you’re also responsible for ensuring that any outstanding taxes are paid and any tax returns for the estate are lodged. This includes income tax returns. It’s crucial to keep detailed records of all financial transactions and seek professional tax advice.
Distributing the estate
Once all debts, taxes, and expenses have been settled, the final step is distributing the estate according to the Will.
Be mindful of legal time periods in estates
Before distributing an estate it is essential to speak with your estates lawyer about the relevant time periods that apply. If you decide to distribute your loved one’s estate too early, you may be opening yourself up to claim against your own personal assets should a claim be made on an estate.
Distribute estate assets
The executor is responsible for ensuring that all beneficiaries receive their share of the estate. This can involve transferring property, distributing funds, or handing over personal belongings. It’s essential to follow the instructions in the Will carefully and ensure that all distributions are made fairly and transparently.
Finalise the estate
After all assets have been distributed, and all legal and financial matters have been settled, the estate can be finalised. This may involve closing any remaining accounts and ensuring that all necessary paperwork is completed. Keep in mind that every estate is different, and some may take longer to finalise than others. Executors have an “executor’s year” to look after estates.
We’re here to support you through every step of this challenging process. Whether you need legal advice or just someone to talk to, we’re ready to help. Losing a loved one is never easy, but with the right support and guidance, you can navigate the legal and practical aspects of their estate with confidence.
Send us an email at [email protected], give us a call on 1300 034 487 or book in a free 10 minute chat here.
We’ll look after you.
