If any party makes a claim against the estate after distribution the executor or administrator may be personally liable and may have to pay the claim from personal funds.

This could happen if distribution happens before taking the time to fully account for all costs and liabilities.

In South Australia, family provision claims can be made up to six months after the date of probate so it may be safer to distribute after that date.

We strongly encourage you to work with a lawyer to manage the estate of the deceased to ensure all tasks are completed accurately and in the required time.

As the executor or administrator, it’s your right to seek professional assistance to fulfil your duties. The cost of meeting with a lawyer to review your estate administration, prior to distribution will be paid for by the estate.

Check all final debts and bills of the state have been paid and complete any outstanding payments.

After all debts have been paid you will need to lodge a final estate tax return if income has been earned or the sale of assets has resulted in capital gains over the tax-free threshold. You will need a tax assessment to know how much tax is payable from the estate (pay immediately or retain before distribution).

Following the payment of all debts, bills and taxes you should reconcile the assets and liabilities register to ensure it accurately reflects the estate.

It’s highly recommended you seek legal advice around beneficiaries and proposed distribution to ensure you are operating within the law.

Using the reconciled assets and liabilities register you should prefer a statement of distribution for each beneficiary to sign before issuing any inheritance.

If you anticipate any disagreement with beneficiaries about the proposed distribution you should seek legal advice.

Once the necessary notice period has expired (in South Australia the minimum time between date of grant of probate / letters of administration is issued and distribution of the estate is 6 months) you can distribute the residue of the estate to beneficiaries.

Once the estate has been distributed you can close any bank accounts associated with the estate and cancel insurances, subscriptions, or services held by the estate to assist in the administration of the deceased estate.

When the estate has been finalised you should file all documents for at least 7 years as these records may be needed if there is a tax or other inquiry into the administration of the estate.