Compiling a Register of Assets and Liabilities
As soon as possible you should start compiling a list of all known items, possessions or property of the deceased as well as outstanding debts or liabilities. Locating all the assets and liabilities of an estate can feel like detective work, it can also be time consuming and frustrating.
Creating a register of assets and liabilities will help you understand the size and value of the estate, ascertain if a grant of probate or letters of administration are required, and provide an overview to beneficiaries.
If a grant of probate or letters of administration is required a statement of assets and liabilities of the deceased estate will need to be provided to the court with your application.
You can download a printable assets and liabilities sheet HERE or create a spreadsheet of your own.
As the executor or administrator, you are responsible for identifying all estate assets and liabilities and you are responsible for accurately and truly reflecting the estate’s financial situation. You may be personally liable to pay any unpaid debt if you have distributed the residue of the estate and cannot collect the distributed inheritance back from the beneficiaries.
Debts, leases, loans and mortgages make up the liabilities of the estate. Common liabilities include:
- Mortgages
- Solar loans
- Rent
- Car loan
- Car lease
- Personal loans
- Buy now pay later loans
- Credit card debts
- Centrelink advance payments
- Ambulance services
- Postponed council rates
- Unpaid bills
- Unpaid income tax*
- Money borrowed from friends or relatives
As the executor, it is your job to settle these liabilities from the estate assets before distributing any residue of the estate to beneficiaries.
Any personal tax liabilities (ie the deceased person’s income tax) and capital gains tax which may apply to certain assets (ie investment properties and shares) must be paid by the estate prior to distributing to beneficiaries.
Estate assets should be valued as accurately as possible to ensure fair distribution among the beneficiaries and to ensure accurate tax reporting. The valuation process can vary greatly depending on the nature and extent of the assets involved, and how they will be sold and distributed.
Some key assets include:
- Real estate (based on independent valuation or market value)
- Investments (based on market value)
- Bank accounts
- Superannuation*
- Vehicles (Red Book can provide a general value)
- Personal belongings
- Collectibles such as artwork, jewellery, and antiques (independent valuation)
- Business interests (independent valuation)
- Shares (based on market value)
- Digital assets such as cryptocurrency (based on market value)
- Rental bonds or Refundable Accommodation Deposit (RAD)
Assets located in another state or territory are considered part of the deceased estate however they may be subject to individual state or territory laws. As executor, you may need to apply for a grant of probate for the state or territory where the deceased’s assets are located.
Accounts and assets held overseas are still considered part of the deceased estate under Australian law. This can create complexities as different jurisdictions have their own legal and tax implications which will require specific legal advice.
If the deceased has nominated for their superannuation death benefit to be paid to the “legal personal representative” it will be recognised as a deceased estate asset and claimed by the executor on behalf of the estate. However, superannuation does not by default form part of the estate.
Assets that are held jointly generally pass directly to the surviving joint owner. Assets held in trusts, and life insurance policies with nominated beneficiaries do not form part of the estate.
Disclaimer: All estate management information provided in this document is general in nature and may not apply to your specific circumstances. Please seek independent, specific legal advice from Your Estate Lawyer for your unique situation.