Losing a loved one is an emotional and challenging time, and dealing with the legal and financial matters of their estate can feel overwhelming. The process of finalising a deceased estate in Western Australia requires careful attention to legal requirements, financial settlements, and asset distribution. For executors and administrators, the responsibility can be complex, and for family members, the process can feel daunting.
Understanding each step of the deceased estate process will help ensure everything is handled correctly and in compliance with WA laws. You can use this guide as a starting point.
If you require professional assistance, Lotus Legal is available to provide expert guidance. We are here to help.
Closing Bank Accounts
One of the first administrative tasks after a person’s passing is to close their bank accounts. Banks require formal notification of the death, and the process will generally require the executor to provide a certified copy of the death certificate along with proof of their executor status, which could be a Grant of Probate or Letters of Administration.
Once the bank receives the necessary documentation, they will release the funds held in the deceased’s account to an estate account, where they can be managed and later distributed to beneficiaries.
In some cases, banks may release small amounts to cover funeral expenses before probate is granted, but this depends on individual bank policies. It is advisable to contact the relevant financial institutions early in the process to ensure compliance with their specific requirements.
Claiming Superannuation Death Benefits
Superannuation is not automatically included as part of the estate and must be claimed separately. Many people assume their superannuation benefits will be distributed in accordance with their Will, but this is not always the case. Instead, super funds follow specific rules about who is eligible to receive the deceased’s superannuation.
The first step is to determine whether the deceased had a binding death benefit nomination in place. This document specifies who should receive the superannuation benefits, and if they are valid, the super fund must follow these instructions. If no valid nomination exists, the super fund will decide who receives the funds, usually distributing them to a dependent or the estate.
Executors or beneficiaries administering a deceased estate should contact the deceased’s superannuation fund to initiate the claims process. This will generally require submitting a claim form, proof of identity, and the death certificate. Each super fund has its own procedures and timelines, so it is important to check their specific requirements.
For more information on how superannuation is handled after death, visit the Australian Taxation Office’s (ATO’s) guide.
Selling or Transferring Shares
If the deceased owned shares, the executor must decide whether to sell them or transfer them to the beneficiaries. This process requires obtaining a Grant of Probate, as share registries will not allow transactions until the executor has the legal authority to act on behalf of the deceased’s estate.
To begin, the executor must contact the relevant share registry, such as Computershare or Link Market Services, to confirm the deceased’s holdings and the transfer or sale process. The executor must provide certified copies of necessary documents, including the Grant of Probate, before the shares can be liquidated or transferred.
If the decision is made to sell the shares, the executor should be aware that this may trigger Capital Gains Tax (CGT), depending on the date of purchase and sale. Seeking financial advice is recommended to ensure the tax implications are understood before any transactions are completed.
Lodging Final Tax Returns
The responsibility of finalising a deceased person’s tax affairs falls on the executor, who must ensure that all outstanding tax obligations are met. This typically involves submitting two types of tax returns:
- The deceased’s final individual tax return, covering income earned up to the date of death
- A deceased estate tax return, required if the estate generates income after death, such as from rental properties or investments
To initiate this process, the ATO should be notified of the death. Executors may also need to apply for a Deceased Estate Tax File Number (TFN) if the estate earns income during the administration process. The ATO has specific guidelines regarding tax obligations for deceased estates, and professional accounting advice can help ensure compliance and avoid penalties.
For further details, visit the ATO’s deceased estate page.
Publishing a Creditors’ Notice
Before distributing the assets of an estate, it is important to settle any outstanding debts. To protect the executor from future claims, a creditors’ notice should be published in The West Australian newspaper or an approved online platform. This notice informs any potential creditors that the deceased has passed away and provides a 30-day window for them to come forward with any claims against the estate.
If no creditors step forward within the specified period, the executor can proceed with distributing the assets. Failing to publish a creditors’ notice may result in the executor being personally liable for any debts that surface later. This step is an essential part of responsible estate administration and can prevent future complications.
Liquidating or Transferring the Estate
Once all debts and taxes have been settled, the final step is distributing the estate according to the Will. This can involve selling assets and distributing proceeds or transferring ownership of properties and investments to the named beneficiaries.
If a property is part of the estate, the executor may need to apply for Probate or Letters of Administration before the title can be transferred or sold. Each asset must be carefully managed to ensure legal and tax obligations are met before the estate is fully finalised. Beneficiaries should also be made aware of any tax consequences related to inherited assets.
The executor’s role is not just about asset distribution — it also involves ensuring fairness, transparency, and legal compliance. Beneficiaries may have questions or concerns, and clear communication can help prevent disputes. Executors who feel overwhelmed by these responsibilities should seek professional legal advice to ensure all obligations are met properly.
For further information on probate, visit the WA Supreme Court’s probate page and application guide.
Finalise a Deceased Estate with Guidance
Finalising a deceased estate is a significant responsibility that requires careful legal and financial management. Executors must ensure that accounts are closed, superannuation is claimed, assets are properly handled, taxes are lodged, and debts are settled before distributing inheritances.
The process can be complex, and mistakes can lead to costly delays or legal disputes. If you are an executor or beneficiary in need of support, professional guidance can make all the difference.
Contact Lotus Legal today to ensure the estate is administered efficiently and in full compliance with Western Australian law.
Disclaimer: Laws are subject to change, and the information provided is general in nature. Readers are encouraged to seek professional legal advice tailored to their specific circumstances to ensure accurate and relevant guidance.