There is no specific amount of commission an Executor is entitled to. However, the court will typically award a commission in a lump sum or percentage of the estate. Here is an estimate of the ranges: 0.25% to 1.25% of the value of transferred assets.
Once probate is granted by the Supreme Court your executor has legal authority to collect monies, pay debts or distribute any assets to your beneficiaries. Before any estate can be finally distributed it is necessary to obtain a clearance from the Australian Taxation Office.
If you are appointed an executor/trustee by a Will, the general rule is that you will not be entitled to be paid for the time you spend in administering the estate. You can however recover your reasonable expenses.
Where the executor has not paid the legacy to the beneficiary within 12 months from the date of death, the beneficiary is entitled to claim interest until the legacy is received.
Reimbursement: An executor is also entitled to reimbursement from estate proceeds for legitimate and reasonable estate administration costs, such as death certificate copies, notarization of documents, the EstateExec licensing fee, and even travel costs strictly associated with managing the estate.
Executors receive 5% of the value of any money they actually receive or pay out in cash while handling their duties. They should not count any cash that was already in the decedent's bank account at the time of death though.
Wait Six Months (or sometimes longer)
By law the Executor has to hold onto estate assets for six months from the date Probate is granted, and cannot pay out any money to the beneficiaries before this time is up.
Finalising the estate
Straightforward estates are often wound up in less than 6 months. Others can take more than a year. It depends on: the complexity of the Will.
An executor can also be a beneficiary of the same will. This is common as many Australians choose to name friends or family as the executor of their will.
Typically, asset holders do not require Probate where an asset has a value of less than $50,000, however, sometimes the threshold is $20,000.
The general rule about legal costs is that the losing party will pay the successful party's costs, but the judge has a wide discretion. If, for instance, the judge felt that the matter proceeded to court because of something the testator did wrong, then he might decide that the costs should be met by the estate itself.
As well as deciding who to appoint, you should consider whether you would expect any of your executors and trustees to be paid for the time they spend dealing with your estate. As a starting point, all executors and trustees are entitled to be reimbursed for their out-of-pocket expenses.
If the Solicitors are acting as professional Executors then the value factor charge will be 0.75% of the value of any residence and 1.5% of the balance of the gross value of the Estate.
There is no specific amount of commission an Executor is entitled to. However, the court will typically award a commission in a lump sum or percentage of the estate. Here is an estimate of the ranges: 0.25% to 1.25% of the value of transferred assets.
What are the powers of the executor of a Will? Executors carry a heavy burden when someone dies. Not only are they required to manage the estate, but must also plan the funeral, cancel credit cards, gather documentation, and hire lawyers and financial planners who can help them crawl out of the administrative gutter.
In short, yes, an executor can be a beneficiary of a will, in fact, it's quite normal for that to be the case. The only people who cannot be beneficiaries under a will are those who witnessed the will when the deceased signed it.
“They appreciate the fact that their loved one may need professional support, particularly right after a death." Having a professional such as a lawyer or an accountant or a corporate trustee work together with a family member can be optimal, says Guerriero.
Sometimes, we can intervene on behalf of our beneficiary clients to ensure that the executor properly carries out the duties. If that doesn't work, we can make an application to the Supreme Court to either compel them to apply for a grant of Probate, account for the estate or remove them as executor.
Can the executor sell property without all beneficiaries approving? In some cases, the executor can sell the property after probate, if there's been no mention of keeping it in the will. However, because this is a sensitive situation, executors should take care to communicate with the beneficiaries.
There are no inheritance or estate taxes in Australia. However, you may have tax obligations for the assets you inherit: capital gains tax may apply if you dispose of an asset inherited from a deceased estate. income tax applies as usual to any dividends or rental income from shares or property you inherited.
Although there is no official ceremony for the reading of a will in Australia, wills should be read and dealt with within 12 months of the date of the deceased.
Can an executor of a will take everything? No. An executor of a will cannot take everything unless they are the will's sole beneficiary. An executor is a fiduciary to the estate beneficiaries, not necessarily a beneficiary.
On average, you should expect the Probate process to take nine months from the date of death through to completion. Typically, we see cases taking between 6 months and a year, depending on the complexity and size of the Estate Probate is being applied to.
While it is often beneficial to communicate with beneficiaries regarding the estate administration, executors are not required to comply with every single request for information. Beneficiaries are often surprised to discover that in reality they have a right to very little information regarding an estate.