What happens to an estate after someone dies
Estate administration is the legal and practical process of settling a person’s affairs after they die. It typically falls to the executor named in the Will. Here is what that process involves.
Australian law · 8 min read
How long does it take?
Estate administration often takes several months and can take considerably longer depending on the assets, beneficiaries, disputes, tax issues and court requirements involved. More complex estates - particularly those involving property, business interests, overseas assets, or contested claims - can take a year or more.
The probate application itself can add several weeks from lodgment to grant. Everything else - settling debts, transferring assets, resolving tax - happens before and after.
An estate cannot be distributed to beneficiaries until debts are settled and probate is granted. During this period, beneficiaries often have no access to estate funds - even for urgent expenses.
The eight stages of estate administration
Register the death and obtain a death certificate
A death must be registered with the Births, Deaths and Marriages registry of the relevant state or territory. In most cases, the funeral director handles this as part of their service. The death certificate is an official document required for almost every subsequent step - obtain multiple certified copies.
Locate the original Will
The original signed Will is normally required for a straightforward probate application. If the original cannot be found, a court may in some circumstances admit a copy or other evidence, although additional evidence and procedures may be required. Common storage locations include: with a solicitor, in a safe at home, at the Public Trustee, or lodged with the Supreme Court registry (in some states). If the Will cannot be located at all, the estate may need to proceed under intestacy rules.
Notify immediate family and beneficiaries
Beneficiaries have a legal right to be informed that they are named in a Will, and to be told of the executor's intention to apply for probate. This notification does not require sharing the full terms of the Will at this stage.
Apply for a Grant of Probate (or Letters of Administration)
Probate is the formal court process by which the Will is validated and the executor is authorised to administer the estate. The application is made to the Supreme Court of the relevant state. It requires the original Will, the death certificate, and an inventory of assets and liabilities. If there is no Will, Letters of Administration are required instead - a more complex process. Probate notice and filing requirements vary between Australian jurisdictions. In NSW, notice of an intended application must generally be published before the probate application is filed.
Identify and secure all assets
The executor must identify every asset in the estate: bank accounts, property titles, investments, superannuation (noting this sits outside the estate unless nominated to the estate), vehicles, and personal property. Accounts should be noted but not accessed until probate is granted. Property should be secured and insured.
Pay outstanding debts
Before distributing anything to beneficiaries, all debts must be settled: mortgages, personal loans, credit cards, tax obligations, and any final expenses. Beneficiaries have no legal claim to estate assets until debts are fully satisfied. An executor who distributes assets before clearing debts can be held personally liable for any shortfall.
Lodge final tax returns
A final income tax return must be lodged for the deceased for the period up to their death. If the estate earns income during administration (rent, dividends), a trust tax return may also be required. The ATO should be notified of the death.
Distribute the estate to beneficiaries
Once debts and taxes are settled, assets are distributed according to the Will. Property is transferred; bank accounts are closed and proceeds distributed; specific items are delivered to the named recipients. Beneficiaries should receive a final accounting of how the estate was administered.
When is probate not required?
Not every estate needs a grant of probate. For small estates, or estates that consist primarily of jointly held assets (which pass automatically to the surviving owner), probate may be unnecessary. Many banks will release accounts up to a certain threshold without a formal grant - typically between $10,000 and $100,000 depending on the institution.
Check with each institution directly. Where significant assets are involved, a grant of probate is almost always required and protects the executor from personal liability.
What happens if there is no Will?
Without a valid Will, no executor has been appointed, and the estate must be administered under intestacy law. The next of kin - typically a spouse or adult child - must apply to the court for Letters of Administration, a more involved process than standard probate.
The administrator has the same responsibilities as an executor but is bound by the intestacy formula rather than the deceased’s instructions. Who inherits, and in what proportions, is determined by law rather than by the person’s actual intentions.
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