Funding Final Expenses: What Can Estate Account Funds Cover
FUNDING FINAL EXPENSES: WHAT CAN ESTATE ACCOUNT FUNDS COVER
Losing a family member or close friend is undoubtedly one of life's most challenging moments. As we deal with grief, we often find ourselves thrust into the responsibilities of managing their financial affairs, ensuring their last wishes are fulfilled, and even organizing a fitting farewell. It's a daunting process, but understanding how to handle a deceased estate can help ease the burden during this emotional time.
Losing a family member or close friend is undoubtedly one of life's most challenging moments. As we deal with grief, we often find ourselves thrust into the responsibilities of managing their financial affairs, ensuring their last wishes are fulfilled, and even organizing a fitting farewell. It's a daunting process, but understanding how to handle a deceased estate can help ease the burden during this emotional time.
1. HANDLING BANK ACCOUNTS AFTER A LOSS
When a loved one passes away, their individual bank accounts are safeguarded, while joint accounts continue as usual.
Any outstanding credit card or personal loan debts will be settled from the deceased's accounts, with credits going to the beneficiaries.
In the absence of a will, estate assets and debts are transferred to the next of kin or estate administrator.
2. UNPACKING THE DECEASED ESTATE
A deceased estate encompasses a person's assets (money and property) and debts that require careful management and resolution.
3. UNDERSTANDING THE EXECUTOR OF A WILL
The executor is the person entrusted with administering the deceased's estate. No specific qualifications are necessary.
Executors can be family members, close friends, or trusted advisors.
4. EXECUTOR RESPONSIBILITIES
Executors have a variety of duties, including locating the will, notifying beneficiaries, and arranging the funeral.
They must also handle assets and debts, apply for probate, settle the deceased's debts from the estate assets, and manage tax returns.
5. DECODING GRANT OF PROBATE
Probate is a vital legal process needed to validate the deceased's will, enabling the executor to manage the estate in line with the will's provisions.
6. GAINING ACCESS TO THE DECEASED'S BANK ACCOUNT
Executors, administrators, or next of kin should promptly contact the bank after the passing. Necessary documents include the death certificate, will, and trust deeds.
The bank may require a grant of probate or a letter of administration, depending on the estate's value.
7. SETTLING AND CLOSING THE ESTATE ACCOUNT
The timeline for estate administration can vary, and unexpected expenses may arise.
Financial institutions can assist by releasing funds to cover funeral and estate-related expenses.
8. WHAT CAN BE PAID FROM THE DECEASED ESTATE?
Executors, next of kin, or administrators can request that existing payments continue and cover expenses like unpaid bills and body corporate fees.
An 'estate of the late' transaction account can be set up for accessing estate funds.
9. PAYING FOR A FUNERAL WITH THE ESTATE
Funeral expenses can be settled using estate funds while the account is frozen. Invoices or receipts must be provided to the bank.
Funera Sydney offers flexible payment options for their funeral services.
DECEASED ESTATES AND EXECUTOR DUTIES
Executors should prioritise self-care during this emotionally challenging time.
Seeking support from family, friends, or professionals is crucial, and bereavement services are available to assist.
Funera Sydney is here to provide guidance and support throughout the process of managing a deceased estate.