Executor of Estate: What Is Their Role?

Managing a deceased estate is a significant legal obligation and often an emotional responsibility to carry during an already difficult time. When someone passes away, the executor of estate becomes the sole person responsible for guiding everything to completion, from making funeral arrangements to finalising tax obligations and distributing estate assets to beneficiaries.

Stepping into the executor role can feel overwhelming. The process involves legal authority, detailed administration and a clear understanding of what the Australian Taxation Office requires.

This article explains what an executor does, how they are appointed, their key duties and the risks to be aware of. Whether you're a named executor, a substitute executor or someone preparing your estate planning, these insights can help you understand the road ahead.

WHAT IS AN EXECUTOR OF AN ESTATE?

An executor is the person named in a valid original will to carry out the deceased's wishes and oversee the administration of their estate. As part of the broader estate plan, the executor's role is to ensure assets, debts and instructions are managed in line with the deceased's intentions. Once the Supreme Court grants probate, the executor becomes the legal personal representative with full authority to manage the deceased person's assets, pay debts and distribute the estate according to the will.

This role is crucial as it upholds transparency, compliance and fairness throughout the administration process. A trusted executor helps minimise disputes, provides clarity for beneficiaries and ensures the deceased's instructions are carried out as intended.

HOW AN EXECUTOR IS APPOINTED

WHEN THERE IS A WILL

If a valid will exists, it typically names an appointed executor. They must apply for a grant of probate from the Supreme Court, which confirms their legal authority.

They often work with a solicitor or accountant to list estate assets and liabilities, prepare documents and ensure compliance.

WHEN THERE IS NO WILL (INTESTACY)

If someone dies intestate, the court appoints an administrator through letters of administration. Usually, the closest next-of-kin applies. Their duties mirror those of an executor but follow intestacy laws under the Succession Act.

ELIGIBILITY AND DECLINING THE ROLE

An executor or administrator must meet specific legal requirements, including:

• Be at least 18 years of age
• Be mentally capable
• Not be bankrupt

Executors or administrators residing overseas may still act, although they may need to appoint a local agent or post a bond to meet legal requirements. If a named executor does not wish to act, they can renounce the role by filing with the court before taking action.

KEY DUTIES AND RESPONSIBILITIES

Executors have ongoing responsibilities from the moment of death until the estate is finalised. These can be grouped into key stages.

1. LOCATE THE WILL AND NOTIFY BENEFICIARIES

The executor must locate the most recent original will and identify beneficiaries. Beneficiaries should be informed early and kept updated, especially if real estate or personal property is involved.

2. ARRANGE THE FUNERAL AND IMMEDIATE AFFAIRS

Executors organise the funeral or cremation according to the deceased's wishes. Reasonable expenses can be paid from the estate, with receipts kept for records.

3. APPLY FOR PROBATE

Probate is a court order made by the Supreme Court. It confirms that the will of the deceased is valid and gives permission to the executor to distribute the estate as described in the deceased person's will. Executors lodge the original will, death certificate and estate inventory with the Supreme Court, usually within six months of death.

4. COLLECT AND SAFEGUARD ASSETS

Executors list and secure property, vehicles, bank accounts, investments, insurance, superannuation and digital assets. Valuable items should be insured, and documents stored safely. Executors must distinguish between estate assets and those passing directly, such as joint property or nominated superannuation.

5. PAY DEBTS, EXPENSES AND TAXES

Executors settle funeral, administration and outstanding debts and lodge the deceased's final tax assessment ("date-of-death" return). If the estate earns income post-death, an estate (trust) tax return is also required. Executors can be personally liable if they distribute assets before debts and taxes are cleared. Professional taxation services can help ensure compliance and minimise risk.

6. HANDLE DISPUTES AND LEGAL CLAIMS

Executors may need to respond to will challenges, such as family provision claims. In New South Wales, claimants must lodge claims within 12 months of death. Executors should remain neutral, maintain detailed records and seek legal or accounting advice when necessary.

7. DISTRIBUTE THE ESTATE

Assets are distributed only after debts, taxes and claims are finalised. Executors usually publish a Notice of Intention to Distribute, allowing at least 30 days for claimants to respond. Beneficiaries should receive a clear statement of assets, debts, expenses and distributions.

8. MANAGE DIGITAL ASSETS

Executors must manage online banking, crypto, social media, cloud storage and subscriptions. Proper access instructions and planning clauses in the will help ensure lawful management. A well-prepared estate plan that includes digital-asset clauses helps executors manage these assets efficiently and in line with the deceased's wishes.

HOW TO CHOOSE THE RIGHT EXECUTOR

Selecting the right executor can impact how smoothly an estate is administered.

QUALITIES TO LOOK FOR

A suitable executor should be:

• Trustworthy
• Organised
• Impartial
• Available
• Financially literate

Executors may act for 9–12 months or longer if the estate is complex.

FAMILY VS PROFESSIONAL EXECUTOR

Family members often know the deceased well but may struggle with emotional complexity. Professional executors, such as accountants or solicitors, bring impartiality and experience in probate and taxation. Wilson Porter can act as a professional executor or assist with estate administration.

MULTIPLE EXECUTORS

Two or more executors can share the workload and offer diverse skills, but disagreements may slow decision-making. Executors should have complementary skills and work well together.

EXECUTOR LIABILITY AND RISKS

Executors can face personal liability while administering an estate. Risks include:

• Distributing assets before debts or taxes are paid
• Selling assets below market value
• Keeping incomplete or inaccurate records
• Mismanaging estate funds

To minimise these risks, executors should keep detailed documentation, record all transactions across estate bank accounts and seek legal or accounting advice early. Partnering with an accountant ensures compliance, reassures beneficiaries and protects the executor.

SIMPLIFIED VS COMPLEX ESTATES

SIMPLIFIED ESTATES

These estates typically involve a small number of assets, few beneficiaries and minimal debts. Probate may not be required, and administration is often completed in under nine months.

COMPLEX ESTATES

Complex estates involve multiple properties, business interests, overseas assets, trusts, blended families or significant investments. Probate and multiple tax assessments are mandatory, and finalisation may take over 12 months.

FAQs

What is the first thing an executor must do?

Locate the will, secure the property and arrange the funeral.

Can an executor withdraw money from a deceased bank account?

Yes, but only for legitimate estate purposes such as funeral costs or debts, and usually after authority is granted.

Can a beneficiary be the executor?

Yes. This is common in family estates, but the executor must act impartially.

Who can be an executor and how are they appointed?

Any capable adult can serve. They are appointed through the will or by the court if the deceased died intestate.

How long does it take to settle an estate?

Most estates take 9 to 12 months. Complex cases may take longer.

What happens if there is no will?

The court appoints an administrator, and the estate is distributed under intestacy rules.

What happens if an executor refuses or cannot act?

They can renounce before acting. The court will appoint another executor or administrator.

ENSURING COMPLIANCE AND CONFIDENCE FOR ESTATE EXECUTORS

The executor role is a balance of responsibility and respect — honouring the deceased's wishes while ensuring the estate meets all legal and tax obligations. With the right guidance, executors can manage the process confidently and avoid unnecessary delays or liability.

Professional accounting and taxation support ensures everything is handled accurately and in line with ATO expectations.

Learn how Wilson Porter can guide you through executor tax obligations.