What an executor actually does

Naming an executor is one of the most consequential choices in a will, and one of the least understood. Most people pick a spouse, sibling, or eldest child without realising what they are signing up for. Here is what the job actually involves.

The role in one sentence

An executor is the person legally responsible for carrying out the instructions in a will: gathering the assets, paying the debts and tax, and distributing what is left to the beneficiaries.

The main tasks

1. Locate the original will and read it carefully.
2. Arrange the funeral, if the family has not already done so.
3. Obtain the death certificate from Births, Deaths and Marriages.
4. Notify banks, super funds, insurers, Centrelink, the ATO, and utilities.
5. Apply for a Grant of Probate through the Supreme Court, if required.
6. Collect the assets: close accounts, sell property, transfer shares.
7. Pay outstanding debts, tax, and estate expenses.
8. Keep detailed records of every transaction.
9. Distribute the remaining estate to the beneficiaries according to the will.
10. Prepare a final statement of accounts for the beneficiaries.

How long it takes

A simple estate with clear paperwork and a single beneficiary can be wrapped up in six to nine months. A complex estate with property, a business, overseas assets, or a contested will can take two years or more. Executors are generally expected to distribute the estate within 12 months of death, and beneficiaries can ask a court to intervene if that deadline slips without good reason.

Choosing the right person

The best executor is organised, patient, comfortable with paperwork, and able to say no to family members when necessary. They do not need to be a lawyer or accountant, but they do need to be willing to pay for that advice out of the estate when it gets complicated.

Things to consider

• Age and health. Naming someone your own age means they may not outlive you.
• Location. An interstate or overseas executor faces slower paperwork and more travel.
• Emotional distance. A grieving spouse may not be the right person to negotiate with the bank in the first month.
• Willingness. Ask before you name them. Executors can decline, and it is easier to have the conversation now.
• Backup. Always name a substitute executor in case the first cannot or will not serve.

What executors are paid

In Australia, executors are entitled to be reimbursed for out-of-pocket expenses. They can also apply for commission for their time, either agreed with the beneficiaries or set by the court, usually in the range of 1 to 3 percent of the estate. Family executors often waive commission.

How to make the job easier

The single biggest gift you can give your executor is a clear record of what you own, where it lives, and who to contact. A workbook that lists your accounts, super funds, insurance policies, and adviser contacts can turn a two-year probate marathon into a few months of orderly paperwork.