Steps to take when a loved one dies
Written and accurate as at: Dec 13, 2024 Current Stats & Facts
Losing a loved one can be a devastating time, and it’s made all the more difficult if it falls to you to handle all the death-related admin. As executor, you have the unenviable task of rounding up assets, notifying organisations, and making sure debts and any other loose ends are sorted. Here’s an overview of some of the items that should be on your to-do list.
Locate the Will
The first step when finalising your loved one’s affairs is to retrieve their Will.
This is usually kept in a secure location at their home, in a safe deposit box at their bank, or with their lawyer, accountant or financial adviser. If you’ve been named as the executor, the deceased will have hopefully informed you of its whereabouts after drawing it up.
Make funeral arrangements
When it comes time to plan the funeral, make sure to read over the Will in case the deceased had any specific requests. As organiser, you might have to pay for the funeral out of pocket before being reimbursed with funds from the estate down the track. Some people plan ahead, however, so it’s worth checking if your loved one pre-paid their funeral or had taken out a funeral insurance policy.
Get a death certificate
The death certificate is usually ordered for you by the funeral director after they register your loved one’s death, but you’ll also have the option to apply for one yourself by contacting your state or territory’s registry of births, deaths and marriages. Take care when providing details so any delays are kept to a minimum.
Apply for probate
Before you can begin the task of retrieving the deceased’s assets, you may need to obtain a grant of probate. This acts as proof you have legal authority to administer their estate. While it might not be necessary if the assets are minimal or were held jointly with you, it’s good to have in your back pocket if property or large amounts of money are involved.
Notify banks and other institutions of the death
A big part of financial death administration is informing institutions of your loved one’s passing and either cancelling the accounts they held or transferring them to your name. Banks, utility companies and Centrelink will probably be among the first you reach out to, but make sure you don’t forget insurance companies, local councils (if the deceased owned property), transport authorities, and their place of work.
Find out if you’re entitled to any super
If the deceased had super you will need to contact their fund to kickstart the claims process. Super doesn’t automatically become part of a person's estate when they die. Instead, the fund trustee has to pay it either as an income stream or a lump sum to either a valid nominated beneficiary or to their dependents.
You’ll be asked to provide a few documents, such as a copy of the death certificate, details of all of the decaesed’s dependents (generally their spouse and children) and evidence of your relationship to the deceased, so make sure to have them handy.
Claiming a super death benefit is more complex than closing a bank account. The super fund will be able to guide you through the claims process so don’t hesitate to reach out to them with any questions.
Repay any debts
Once you’ve collected all the deceased’s assets, you’ll need to begin the task of settling any debts they owed. It’s expected that the executor will pay them off using the money from the estate, but if the available funds fall short, it might be necessary to start selling assets or liquidating investments.
In cases where even these aren’t enough, the outstanding debts might not have to be repaid. A common worry is that creditors will chase up relatives for the money, but other people can only be liable if they were a joint borrower, a guarantor, or the loan was secured against one of their assets. If neither of these apply, you and other relatives are generally in the clear.
Lodge a final tax return on their behalf
As exasperating as it might seem, taxes are unavoidable even in death. That means if the deceased was still earning taxable income, you’ll need to set aside time to lodge a final tax return on their behalf. Any tax payable will be calculated from the start of the income year until the date they passed away.
Sell or distribute their assets
Once taxes and debts have been paid off, you can then start the process of distributing what’s left of the estate in accordance with your loved one’s wishes. This involves multiple steps — not only will you have to take inventory of all the assets and have them valued, depending on your state or territory you may also need to advertise your plans to distribute the estate by publishing an online notice.
The purpose of this notice is twofold: (1) it gives people and creditors the chance to make a claim if they believe they’re entitled to a share of the estate, and (2) it can help shield you from personal liability in case of any future claims.
After a sufficient notice period, you can start transferring assets to beneficiaries as listed in the Will. Try to keep the beneficiaries informed early on in the process so they don’t have any unrealistic expectations about what they’re receiving and how soon they’ll be receiving it.
