Choosing an executor for your Will – what do I need to consider?

Appointing an executor is an important decision when making your will. You should think carefully about the duties of an executor and the people in your life who you trust to fulfil your wishes before you name an executor in your will.

 

 

What does an executor do?

 

An executor is responsible for administering your estate, which means they implement the directions of your will or testamentary documents, settle any debts from available funds and finalise your affairs. They will, in most cases, be required to seek a grant of Probate through the Supreme Court of NSW, and then distribute your assets as instructed by you. Your legal advisor will tell you if it is not necessary to obtain a Grant of Probate.

 

For many estates, this is as simple as locating your will then taking steps to identify your bank accounts, if you own your home, and your superannuation and ensuring these are distributed. For other estates, business arrangements, complex investments and blended family arrangements can make this process more challenging. If there are legal disputes over your estate, your executor may need to participate in resolving these matters.

 

Executors usually seek the assistance of a solicitor through this process, with legal costs covered by the estate. Many executors will use the solicitor who assisted with your legal affairs, but they are under no obligation to do so.

 

If there are ongoing trusts in your will, or funds to be managed on behalf of a disabled or minor beneficiary until they are an adult, your executor will be responsible for overseeing these processes unless alternative arrangements are made.

 

If an executor is unwilling or unable to act on your behalf for any reason, then they are able to resign their position, known as ‘renouncing’ their role. This needs to be done formally as soon as possible after death.

 

Executors can apply to the Court for commission for their work.

 

 

What does an executor not do?

 

An executor is not personally responsible for your debts or liabilities if they are not covered by the estate.

 

 

Legal requirements

 

Any person over 18 who has legal capacity can act as an executor.

 

When making a will, you can nominate a single executor or multiple executors to act together. It is strongly recommended to name at least one substitute executor in your will in case your first preference is unwilling or unable to fulfil their duties for any reason.

 

 

Considerations

 

If your family circumstances and gifts in your will are simple, then naming a sole beneficiary and executor, such as your spouse or child, may be an easy choice for you.

 

If your estate is more complex, including trust, business and investment arrangements, or if you have more complicated family dynamics, your choice of executor may be more difficult.

 

It is important to choose an executor who you trust, and who you believe has the capacity to fulfil their legal responsibilities appropriately. When appointing multiple executors, you should consider their ability to work collaboratively. Appoint an executor whose interests are contrary to the interests of any beneficiaries should be avoided to minimise any personal conflict, but is not prohibited.

 

Being an executor can be a simple appointment, but it can also be a time consuming role. For this reason, you should consider whether the person you choose has the time and capacity to fulfil their duties. If their circumstances change between the making of your will and the will being administered, they can speak with a solicitor to renounce their appointment.

 

In appointing your executor and a substitute executor, you should give consideration to the likelihood that any person appointment is likely to survive your death.

 

The Court is unlikely to grant Probate to executors located overseas unless no other viable person is available.

Prior to nominating an executor, you should speak with them to ensure they are comfortable with the appointment. You do not have to disclose the contents of your will or any other details when doing so. Your executor should know the location of your will and where to find important information after your death.

 

 

Can a beneficiary be an executor?

 

It is very common for a beneficiary of a will to be an executor, including when the beneficiary is a spouse or child of the person making the will.

 

Conversely, it is not necessary for your executor to receive a gift in your will.

 

 

I don’t want to appoint a family member or friend as my executor, what can I do?

 

You can appoint your solicitor to be your executor, with provision made for relevant fees to be paid from your estate.

 

There are also trustee companies which can be appointed. Alternatively, arrangements can be made to appoint the NSW Trustee and Guardian. Both these options would attract substantial fees payable by the estate. Most lawyers discourage these options for because of the cost.

 

Ready to make a will? For advice on your Will and appointing an executor, get in touch with us today.

My family member or friend has died without a Will. What happens now?

If your loved one has died without a Will, you are not alone. Dying without a Will, which is known as dying ‘intestate,’ is a common but challenging issue which confronts many families across New South Wales and beyond during an already stressful time. According to the NSW Trustee and Guardian, approximately 60% of NSW residents do not have a Will in place to outline their wishes after they die leaving their families to navigate the complex process of intestacy.

When a person does without a Will, it is important that their surviving loved ones seek professional advice to ensure that his or her property passes legally and completely, and to minimise disputes between potential beneficiaries.

 

Complete or partial intestacy

Intestacy occurs when a person passes away with no Will at all, if a Will is invalid, or if their Will does not sufficiently deal with all of their assets.

In these cases, NSW intestacy laws determine how the deceased’s estate is distributed. This distribution may be completely contrary to the wishes or expectations of the deceased.

 

How can you be sure there is no Will or testamentary document? 

Prior to administering an Estate without a Will, a thorough search needs to be conducted to confirm that no formal or informal Wills exist. This could include checking the deceased’s home, contacting any local solicitors or accountants who may hold documents on behalf of the deceased, and any other practical steps available to confirm no documents exist to indicate the deceased’s wishes.

 

Who is entitled to administer the Estate? 

Without a Will, the Court must determine who can apply under the Succession Act 2006 to for the distribution of the Estate, known as seeking Letters of Administration.

People who are commonly able to apply include:

  • Spouse or de facto partner
  • Children
  • Parents
  • Siblings

If no family or next of kin are able to apply, the Court may appoint a person who can, in the opinion of the Court, be trusted to administer the Estate in accordance with the law.  

A successful applicant becomes responsible for calling in the assets of the deceased, settling any debts, and distributing any remainder according to the provisions of the Succession Act 2006.

 

Who is entitled to inherit from the Estate? 

The division of the Estate is dependent on the composition of the deceased’s family, taking into account:

  • Spouse or de facto partner
  • Children (including from current or previous relationships)

Adjustments will be made to provide adequately for the spouse of the deceased.

If no partner or children are able to inherit from the Estate, the Court will look to:

  • Parents
  • Siblings
  • Grandparents
  • Aunts and uncles

If no person is able to inherit under the Succession Act, then the deceased’s property passes to the State.

 

What now?

The administration of an Estate without a Will can be complicated, so seeking advice from an experienced Estate lawyer is critical to ensure the process is appropriately followed.

Our experienced Estate lawyers can guide you through the process, help you avoid disputes, and ensure the estate is distributed legally and efficiently.

If your loved one has passed away without a Will, or with a Will which does not adequately account for all their property, contact us today to discuss the next steps to finalise their estate.

Gifting Superannuation Through A Will

Superannuation is often the biggest asset a person will have in their lifetime and can be the largest part of a person’s Estate when they pass.

However, gifting your superannuation to family or friends after your death is more complicated than it first appears, as it does not always form part of your Estate.

Depending on your personal circumstances, it is important to understand the most effective way to leave a gift from your superannuation for your loved ones.

 

I HAVE A BINDING DEATH NOMINATION THROUGH MY SUPERFUND – HOW DOES THIS WORK?

A binding death nomination is a formal document lodged with your superannuation fund to specify who can receive a payment directly from the fund after your death.

If you have dependents, including a spouse, child or other family member, a binding death nomination may be the best way to provide for them after your death. Superannuation funds are only able to directly pass funds to dependent persons listed under law, including your spouse, minor child or dependent adult child.

A binding death nomination generally expires after a set period of two years and needs to be regularly updated. Some funds offer non-lapsing nominations on request.

 

I WANT TO LEAVE MY SUPERANNUATION TO SOMEONE SPECIFIC

If you have no dependents, or you wish to leave your superannuation to someone other than a dependent for any reason, a binding death nomination is unlikely to be the most effective way to leave a gift, as your superfund may not legally be allowed to pay this person.

Examples of gifts to non-dependent beneficiaries:

  • Gifts to non-dependent adult children
  • Gifts to grandchildren, nieces and nephews or cousins
  • Gifts to friends
  • Gifts to charitable organisations

In these circumstances, your binding death nomination should be to your “personal legal representative,” which gifts the balance to your Estate allows your Executor to handle your superannuation as part of your Estate.

You can then specify in your Will how you would like your superannuation to be distributed.

 

WHAT HAPPENS IF I DON’T MAKE A BINDING DEATH NOMINATION

If a person dies without making a nomination through their superfund, it is up to the trustee of the superfund to make payment to dependents or to the Estate of the person.

This can result in complicated financial implicated for recipients who are on Income Support, receiving Aged Care payments, or for minors.

It can also lead to your superannuation being granted to an unintentional recipient.

Even if provision has been made in your Will to gift your superannuation to a particular person, this may not be enforceable without a nomination.

 

WHAT ARE THE TAX IMPLICATIONS OF GIFTING THROUGH MY WILL INSTEAD OF THROUGH MY SUPERFUND

The financial implications of gifting funds through a Will instead of a superfund can vary. We recommend seeking financial advice to understand any complexities of your individual circumstances.

 

WHEN SHOULD I UPDATE MY WILL TO GIFT MY SUPERANNUATION

If you have changes in your personal circumstances, such as having children, entering a relationship, separating from a partner or significant changes to your personal assets, then you may wish to amend your Will and your Binding Death Nomination arrangements.

For advice on your Will and gifting superannuation, get in touch with us today.

I Want To Donate My Body To Science – What Legal Steps Do I Have To Take?

Some people wish to contribute to science and medical research by bequeathing their body to a research institution. This is an important contribution to universities and organisations across the state, however, if not done properly, your gift may not be legally possible.

 

DONATING THROUGH A WILL?

In New South Wales, it is not possible to consent to donate your body to science through your Will alone, and research organisations will not be able to accept donations from your executor.

 

WHAT SHOULD I DO INSTEAD?

To make an effective donation of your body, there are important steps to take:

  • Identify which organisation you’d like to receive your donation

There are a number of organisations which may benefit from your donation, including universities, the Organ Donor Register and the Brain Bank. A list of these organisations is available at the bottom of this page.

Each organisation has its own list of criteria which may make you ineligible, including certain illnesses or risk factors. Consider carefully whether your chosen organisation will be able to accept your contribution

  • Register with the organisation

Each organisation has a registration process for donors, including medical disclosures. Get in touch with them directly to commence the process

  • Prepare your Will and nominate your executor

Make sure the person responsible for managing your affairs when you pass is aware of your registration with the organisation and has a copy of relevant paperwork. When you pass, there is a very limited window of time for your donation to be accepted by the organisation and transported to their facilities for use. Your executor can take steps as soon as you pass to contact the organisation and increase the chances of a successful donation. Your executor should also be aware of your alternative preferences if your body cannot be accepted.

 

HOW LONG CAN MY REMAINS BE STORED

Under NSW law, human specimens can be stored for a maximum of four years, with a possible extension for an additional four years.

 

WHAT HAPPENS ONCE MY REMAINS CAN NO LONGER BE USED?

While each organisation will have different processes, many organisations will arrange for cremation at the end of the retention period, and will cover the costs of the cremation. Your family will then be able to receive your ashes.

 

WHAT HAPPENS IF MY REMAINS CAN’T BE ACCEPTED?

There are many reasons why an organisation may be unable to accept your donation, including illnesses or medical reasons, if you pass outside of their donation area or if there is limited capacity to accept your donation. If this happens, your executor or family will be responsible for making decisions about if your body should be buried, cremated or otherwise managed. It is important you communicate your alternate wishes with your loved ones.

 

ORGANISATIONS ACCEPTING DONATIONS

University of New South Wales School of Biomedical Sciences – Bequeathal Program: https://www.unsw.edu.au/medicine-health/our-schools/biomedical-sciences/partner-with-us/bequeathal-program

University of Technology, Sydney – Body Donation Program: https://www.uts.edu.au/about/faculty-science/surgical-and-anatomical-science-facility/body-donation-program

University of Sydney – Body Donor Program: https://www.sydney.edu.au/medicine-health/industry-and-community/support-us/body-donations.html

Macquarie University – Body Donations: https://www.mq.edu.au/faculty-of-medicine-health-and-human-sciences/engage-with-us/body-donations

Western Sydney University – Body Donor Program: https://www.westernsydney.edu.au/body-donor-program

Australian Organ Donor Register: https://www.donatelife.gov.au/register-donor-today

MS Australia Brain Bank: https://msbrainbank.org.au/

Lions Eye Bank: https://lionssavesightfoundation.org.au/lions-nsw-eye-bank (Please note, donations to the Eye Bank can be facilitated through the Australian Organ Donor Register)

Please note this list is not exhaustive.