Can an Executor of a Will be Paid?

Sometimes parties may be nominated as an executor in a Will where their relationship to the deceased is one of a trusted friend or acquaintance. Similarly, where there is no executor or they have been cleared off, an administrator may perform the executor’s role. This decision is often made based on that trust and without consideration of the onerous tasks that occur in applying for a grant of probate and administering the estate.

Where an estate involves considerable work in administration, an executor or administrator can be granted remuneration for that work.

In South Australia, this principle is enshrined in Section 96 of the Succession Act 2023 (SA), which states:

The Court may allow an executor, administrator or trustee, whether of the estate of a deceased person or otherwise, such commission or other remuneration out of the estate or trust property, and either periodically or otherwise, as the Court considers just and reasonable.

Key Tasks Involved in Administering an Estate

When considering the tasks involved in the role of an executor, the responsibilities are significant, and the following list is by no means exhaustive. Among these tasks, there are multiple subtasks, and an executor or administrator may be required to perform the following tasks:

Initial Steps

• Searching for a Will, which may involve searches through Newspapers or the Law Society and the publishing of notices.
• Arranging the funeral.
• Obtaining a tax invoice for the funeral.
• Obtaining a Death Certificate.

Probate

• Identifying the estate and all its assets and liabilities. This may involve going through the deceased’s paperwork, contacting financial institutions, identifying and documenting any personal belongings and assets such as cars and boats.
• Arranging a solicitor to make an application for probate to the Supreme Court or completing all the required forms, necessary affidavits and the assets and liabilities to submit to the Court for a probate application.

Administration Steps

If the deceased owns property:

• Notifying utility accounts such as electricity, telephone and gas.
• Contact the bank if there is a mortgage.
• Contacting Council and Revenue SA regarding rates and water.
• Maintaining the property condition and organising the distribution or disposal of the furniture and personal belongings within.
• If it is to be sold, organise a cleanup of the property or clean it yourself.
• Organising a real estate agent to sell the property.

Bank Accounts

• Contacting banks to determine account balances and identifying any direct debits that may need to be cancelled.
• Obtaining statements and organising for all funds to be released into an estate bank account.
• Providing the necessary legal documentation to the bank for the release of the funds.

Shares

• Contacting the broker or share trading platform.
• Providing legal documentation and forms required to deal with the shares.
• If shares are to be sold, organise the sale.
• If shares are to be distributed, arrange for the shares to be transferred.
• Obtaining all records of dealings for the estate.

Superannuation

• Obtaining Membership Fund Statements.
• If superannuation is being passed to the estate, contact the superannuation fund and lodge an application with the trustee for payment.
• Determine if there was death insurance cover and, if so, submit an application.

Business & Partnerships

The list of duties here is considerable; however, noting just a few:

• Contacting the accountant and business partners.
• Examining any trust deeds.
• Payment of outstanding employee entitlements.
• Obtaining a business valuation and finding a sales agent.
• If the business is not to be sold, administer its transfer to the nominated beneficiary/s.
• If the business is to be closed, it should organise its liquidation.

Aged Care Facilities

• Contact the aged care facility to obtain a refundable deposit if there is one.
• Paying any outstanding fees and obtaining statements for the records of the estate administration.

Insurance Policies

• Contact any insurance providers to cancel any insurance not required.
• Maintaining payment of policies on estate assets that have not yet been distributed, such as cars and houses.

Taxation

• Lodging tax statements on behalf of the deceased or their business.
• There’s no inheritance tax in Australia, but a deceased estate may still be taxed if it earns income after the person’s death.

Service Providers

• Contact any service providers, such as clubs, gyms, and associations, to cease membership and pay any outstanding fees.
• Cancelling all accounts and home delivery services.

Digital Providers or Assets

• Contacting providers and cancelling accounts.
• Arranging for things like cryptocurrency to be sold and funds transferred to the estate.

Debts of the Estate

• Arranging payment of all outstanding debts.

Why Executors May Deserve to Be Paid

As seen from the summary list above, the tasks are numerous and onerous, and whilst an estate solicitor can lighten the load and manage the bulk of the estate administration, there will always be tasks for the executor or administrator to perform.

When dealing with large estates, it can take years to administer them correctly. It is not a job for the faint-hearted. If there are issues around family disagreement and demands on the executor or administrator, or the Will is contested, one can see why it is that an executor should receive a commission. Otherwise, it is not a job anyone would willingly sign up for.

How Much Can an Executor of a Will Be Paid?

This will be somewhat dependent on the tasks undertaken and may differ where the executor has some special skills that may assist in the administration of an estate, such as being an accountant, but in general, in South Australia, how much should be paid is guided by looking at the Barr Smith Scale which allocates a set percentage according to the size of the estate.

Can an Executor Use the Deceased’s Bank Account?

An executor cannot use the deceased’s personal bank account as if it were their own. Once a person has passed away, their individual accounts are legally frozen. The bank will only release funds for limited purposes, typically to pay funeral expenses, urgent estate debts, or taxes, and only after receiving proper documentation such as the death certificate or a grant of probate. After probate is granted, the executor must open a separate estate bank account in the name of the deceased’s estate. All money belonging to the deceased should be transferred into that account, from which the executor can then make payments and distributions in accordance with the Will and applicable laws. Any personal use of estate funds by an executor is strictly prohibited and may constitute a breach of fiduciary duty.

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Related Blog – How Long Does Probate Take in South Australia?

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