Collect assets and pay debts
You can start collecting an estate's assets and paying the debts once probate or letters of administration has been granted. If a grant is not required, the estate can be distributed under the rules of intestacy after debts have been paid.
After probate or administration
Once you have been granted probate or letters of administration, you will be able tocollect assets and pay off estate debts. You may publish a Notice of Intended Distribution on the NSW Online Registry to give creditors one month notice to make a claim on the estate before you distribute the estate to the beneficiaries.
You may need to sell assets in order to pay beneficiaries, if no specific gifts were made in the will.
This might involve:
- setting up a bank account
- selling property or shares
- collecting interest.
To make recording this easier, you can set up a single bank account in the name of the estate to deposit any money from sales or interest.
Collecting assets
The executor or administrator is responsible for confirming and protecting the assets owned by the deceased until it is ready to be distributed to the beneficiaries. An executor or administrator can be held personally liable for any loss or damage to property.
Different organisations have different processes for releasing assets to an executor or administrator. Sometimes a formal application for a grant is not required if the deceased does not have a large estate or property in their own name.
Often you will need to provide:
- a certified copy of the grant of probate or letters of administration
- personal identification.
Learn more about collecting assets at Legal Answers.
Selling assets
Sometimes the will might leave money to beneficiaries, rather than property.
In some cases, you will need to sell property or shares to make this possible.
As an executor, you are legally required to get a fair price for any assets you sell. If you do not sell assets at a fair price, you might be personally liable for costs, if beneficiaries sue.
To make sure you are getting a fair price for any property you sell, it might be useful to talk to an independent valuator before the sale.
Paying debts
Before anything from the estate can be distributed to the beneficiaries, any existing debts need to be paid from the estate.
This is the case whether or not probate or administration was needed.
Debts might include:
- loans (credit cards, mortgages)
- funeral expenses.
You should get legal advice before you pay any debts owed by the estate.
Find out more about dealing with the estates debts at Legal Aid NSW.