Managing Deceased Estate Accounts: A Practical Guide
MANAGING DECEASED ESTATE ACCOUNTS: A PRACTICAL GUIDE
Losing a family member or close friend can be very overwhelming, particularly if you’re also responsible for their financial affairs, actioning their Will and arranging a funeral. Taking ownership of your loved one’s deceased estate is probably your last priority when someone dies. But knowing what needs to happen and what can be paid from an estate account can make a difficult time that little bit easier.
Losing a family member or close friend can be very overwhelming, particularly if you’re also responsible for their financial affairs, actioning their Will and arranging a funeral. Taking ownership of your loved one’s deceased estate is probably your last priority when someone dies. But knowing what needs to happen and what can be paid from an estate account can make a difficult time that little bit easier.
HANDLING BANK ACCOUNTS AFTER A LOVED ONE'S PASSING
When someone dies in Australia, their bank or financial institution will freeze their accounts where they were the sole account holder, to prevent further transactions and ensure the estate is protected. Any joint bank accounts, however, will continue to operate as normal. Accounts where the method of operation was ‘both to sign’ will now only require one signature.
When someone dies in Australia, their bank or financial institution will freeze their accounts where they were the sole account holder, to prevent further transactions and ensure the estate is protected. Any joint bank accounts, however, will continue to operate as normal. Accounts where the method of operation was ‘both to sign’ will now only require one signature.
UNDERSTANDING THE DECEASED ESTATE
When a person dies, they often leave behind assets like money and property, as well as debts that need to be managed and finalized. This is often referred to as a deceased person's estate, or deceased estate.
When a person dies, they often leave behind assets like money and property, as well as debts that need to be managed and finalized. This is often referred to as a deceased person's estate, or deceased estate.
THE ROLE OF AN EXECUTOR
If you have been named as an executor of a Will, it means the deceased has appointed you to administer their estate. This role can be filled by a family member, close friend, trusted advisor, or a solicitor. Professional qualifications are not required to act as an executor.
If you have been named as an executor of a Will, it means the deceased has appointed you to administer their estate. This role can be filled by a family member, close friend, trusted advisor, or a solicitor. Professional qualifications are not required to act as an executor.
DUTIES OF AN EXECUTOR
An executor is responsible for taking ownership of the deceased person’s estate and distributing the assets to the beneficiaries in accordance with their Will. As an executor, you will also be responsible for arranging and paying for the funeral and other administrative expenses of the deceased.
An executor is responsible for taking ownership of the deceased person’s estate and distributing the assets to the beneficiaries in accordance with their Will. As an executor, you will also be responsible for arranging and paying for the funeral and other administrative expenses of the deceased.
THE GRANT OF PROBATE
Probate is a legal process required to validate a deceased person’s Will, to be carried out by an executor named in the Will. Grants of probate and letters of administration are collectively referred to as grants of representation. A grant of representation is a legal document authorizing an executor (or executors) to manage a deceased estate in accordance with the provisions of their Will.
Probate is a legal process required to validate a deceased person’s Will, to be carried out by an executor named in the Will. Grants of probate and letters of administration are collectively referred to as grants of representation. A grant of representation is a legal document authorizing an executor (or executors) to manage a deceased estate in accordance with the provisions of their Will.
ACCESSING THE DECEASED’S BANK ACCOUNTS
Firstly, if you are the estate executor, administrator, or Next of Kin, you’ll need to contact the bank or financial institution as soon as you can after the person has passed away. Most will have specialist support teams available to assist those in your position. You’ll then need to complete some paperwork, like filling out a deceased customer notification form, which confirms your loved one’s details. This will allow the bank to identify the accounts held in the deceased person’s name. The bank will also need to verify your own authorization before allowing access to your loved one’s accounts.
Firstly, if you are the estate executor, administrator, or Next of Kin, you’ll need to contact the bank or financial institution as soon as you can after the person has passed away. Most will have specialist support teams available to assist those in your position. You’ll then need to complete some paperwork, like filling out a deceased customer notification form, which confirms your loved one’s details. This will allow the bank to identify the accounts held in the deceased person’s name. The bank will also need to verify your own authorization before allowing access to your loved one’s accounts.
TIMEFRAME FOR SETTLING AND CLOSING A DECEASED ESTATE ACCOUNT
It can take some time – often months – for someone's estate to be administered before funds are available, and often there will be unexpected expenses when someone passes away, and this process differs between specific banks and financial institutions. We suggest that you contact your financial institution for further information.
It can take some time – often months – for someone's estate to be administered before funds are available, and often there will be unexpected expenses when someone passes away, and this process differs between specific banks and financial institutions. We suggest that you contact your financial institution for further information.
WHAT CAN BE PAID FROM A DECEASED ESTATE ACCOUNT
An executor, Next of Kin, or administrator can usually request that specific existing payments continue, or arrange assistance with paying for funeral expenses if needed. We explain that further in the next section.
An executor, Next of Kin, or administrator can usually request that specific existing payments continue, or arrange assistance with paying for funeral expenses if needed. We explain that further in the next section.
FUNERAL EXPENSES AND DECEASED ESTATE
Funerals can generally be paid with the estate. The bank can release funds from the estate to pay for funeral costs while the account is frozen. This can be paid to the executor or administrator acting for the estate, or the person who organized or paid for the funeral with their own money. They just need to provide the bank with an invoice or receipt for the funeral service.
Funerals can generally be paid with the estate. The bank can release funds from the estate to pay for funeral costs while the account is frozen. This can be paid to the executor or administrator acting for the estate, or the person who organized or paid for the funeral with their own money. They just need to provide the bank with an invoice or receipt for the funeral service.
FINAL THOUGHTS ON DECEASED ESTATES AND EXECUTOR RESPONSIBILITIES
The role of an executor of a will can be overwhelming, especially for those without legal or business expertise. Administering an estate takes time, and it's crucial to prioritize your well-being during this period. Grief is a personal journey, so don't rush into decisions. Seek support from family, friends, or professionals if needed. Various bereavement services are available to assist. A place to start would be the Australian Centre for Grief and Bereavement or for more immediate help call Lifeline.
Funera Sydney is here to help, for guidance and support on finalizing Deceased Estate accounts, you may contact us. For time-bound matters you may reach us through the following Contact Numbers:
Main: Sydney (02) 9954 6655 Sydney (02) 9954 6655 Newcastle (02) 4955 1110 Wollongong (02) 4243 8755
The role of an executor of a will can be overwhelming, especially for those without legal or business expertise. Administering an estate takes time, and it's crucial to prioritize your well-being during this period. Grief is a personal journey, so don't rush into decisions. Seek support from family, friends, or professionals if needed. Various bereavement services are available to assist. A place to start would be the Australian Centre for Grief and Bereavement or for more immediate help call Lifeline.
Funera Sydney is here to help, for guidance and support on finalizing Deceased Estate accounts, you may contact us. For time-bound matters you may reach us through the following Contact Numbers:
Main: Sydney (02) 9954 6655 Sydney (02) 9954 6655 Newcastle (02) 4955 1110 Wollongong (02) 4243 8755