If someone close to you has passed away, you’ve probably learned what probate means.
Now, you might be wondering “What happens after Probate has been Granted?” and more importantly, how long until the executor can distribute funds to beneficiaries?
What happens after a Grant of Probate?
Upon receiving the Grant of Probate, the executor gains the legal authority to begin distributing the estate’s assets in accordance with the wishes outlined in the deceased’s will.
It’s advisable, however, to delay the distribution of the estate for at least six months from the date of death due to potential will contests. If there is notification that the will is being contested, the executor will postpone distribution until the matter has been legally resolved.
Following the Probate process, the executor takes on the responsibility of reconciling the estate’s assets and liabilities. Once the net value of the estate is determined, the executor will then notify beneficiaries of their final inheritance and proceed with the distribution of the estate’s assets.
Once Probate has been granted, the Executor must used a certified copy of the Grant to collect the deceased’s assets and take steps to pay any debts including income tax owed by the deceased.
After funeral expenses are paid, the Executor is entitled to claim any expenses relating to the administration of the Estate before other debts are paid.
If you’re looking for a probate lawyer near me, schedule a free consultation with Will and Estate Lawyers Australia today.
How long after probate can funds be distributed?
Upon taking charge of a deceased estate, an executor in Queensland understands that immediate distribution is not feasible. A prudent executor will typically wait a minimum of six months following the date of the deceased’s passing before commencing the distribution of the estate. This waiting period allows for potential will challenges or Family Provision Claims against the estate to surface and be addressed.
That said, the executor does have the latitude to authorize an early release of funds in situations of genuine financial hardship for a beneficiary. Additionally, a beneficiary can directly petition the court for an interim distribution order. Importantly, any such interim disbursement cannot exceed what the beneficiary is ultimately entitled to under the terms of the will.
Executor Duties and Risks
An Executor has many duties and obligations to fulfill. Those duties typically entail:
- Arranging the funeral (and paying for the funeral invoice). This type of debt is repaid first from the estate.
- Protecting estate assets. This includes obtaining insurance on any property such as car or home insurance. This also entails contacting the bank regarding mortgage repayments and credit card bills.
- Notifying all relevant parties and government entities of the death (including Centrelink, local government / council)
- Collecting all assets and obtaining information about all debts, fees and liabilities owing at the date of death.
- Paying all liabilities
- Completing all outstanding tax returns and filing a final estate tax return
- Defending the estate and upholding the will in the event of a challenge or dispute including attending mediation and/or trial.
- Distributing possessions, property and residue to beneficiaries per the deceased’s wishes in the Will
Probate Risks for Executors Case Study: Matt is the Executor of his late friend Simon’s will. He obtained Probate and attended to the estate administration. He ensured Simon’s property was insured until it was sold and completed all the forms to transfer Simon’s shares in several ASX-listed companies into his name as Executor of the estate. Matt completed 10 years of outstanding tax returns and the final estate tax return. Matt managed to complete everything in just 5 months and happily distributed the residue estate to Maddie, Simon’s sister who was the sole beneficiary of the Will. He made no claim for Executors commission because he didn’t know an Executor is entitled to be reimbursed for his or her troubles. The following day, Matt received a letter from Liz advising that she was making a family provision claim for a share of Simon’s estate because she was Simon’s de facto spouse. Confused, Matt brought the letter to a Wills and Estate Lawyer who gave him the bad news. If Liz’ family provision claim was successful, Simon could be personally liable for the estate he distributed to Maddie because the statutory protection for Executors only begins 6 months after the date of death. Maddie has flown to Europe for an open-ended round-the-world trip and isn’t returning calls, let alone any money.
Most Executors are unaware they may be held personally liable for distributing estate assets. As notice of a will challenge may be given up to 6 months after the death, a Personal Representative who distributes assets before 6 months does not receive the statutory protection from a law suit. The safe option is to wait six months before making any distributions.
Looking for more information? Don’t miss our complete guide to a Grant of Probate in Queensland.
Contesting a will after probate
Did you know that a will can be contested after probate has been granted? It’s true. Getting a grant of probate doesn’t stop that will from a family provision application.
The good news is you’re not alone. The legal system understands Executors need to retain a lawyer to help lawfully administer the estate. Costs for legal services are paid by the estate, and it won’t affect your entitlement to commission.
Call Will and Estate Lawyers Australia today on 07 3073 2405 or contact us for a free no obligation consultation.
