Administration of the estate typically involves facilitating the release of assets to the estate, and the subsequent distribution of the estate to the beneficiaries in accordance with the will. The administration of an estate may typically require:
- The transfer of real property;
- The transfer of shareholdings and personal property such as vehicles or jewellery;
- The release of assets from financial institutions such as banks to the estate;
- Collection of any debts owing to the estate including loans payable to the deceased;
- Management of any will challenges or other legal matters outstanding against the deceased;
- The bequeathing of specific gifts to beneficiaries that are listed in the will; and
- The distribution of the estate to beneficiaries in accordance with the will.
Administration of an estate can involve some complex legal issues with respect to preferences of payments and the timing of distributions to ensure that the executor is indemnified by the estate.
Executor Commission and Remuneration
An executor may make an application to the court to be remunerated for their services as an executor. This is referred to as executor commission. Executor commission is usually calculated as a percentage of the size of the estate. Executors who are professionals may be able to be compensated in accordance with their usual professional rate.