We’re so sorry for your loss. It can be overwhelming to think of all the tasks that come at this difficult time. Many tasks require immediate attention, where others may take a year to complete. This page provides an overview of the entire process.
1. Organ Donation
Generally, only 1% of deceased qualify for organ donation. The hospital will confirm if this is an option for your family. This needs to be decided a few hours before death. Organ donation cannot occur if the deceased registered their objection to organ donation or where there is disagreement or no consent from the family.
2. Doctor’s certificate of death
This certificate is provided within 48 hours of death by the attending doctor or paramedic. If your loved one planned to die at home, call their doctor to come and certify the death. If your loved one died in care the hospital or nursing home will arrange this for you. If the death was unexpected the paramedics or hospital can provide doctor’s certificate of death.
The doctor’s certificate of death is needed to begin arrangements with the funeral home. It is different from the Death Certificate from Births, Deaths and Marriages.
3. Funeral arrangements
If you are unsure what funeral your loved on may have wanted, check their will as this information is commonly included. While the next of kin usually make all the necessary arrangements, it is ultimately the executor named in the will who legally has final say for all aspects regarding deceased’s funeral. Funerals are usually held around a week after the death, allowing time for people to make travel arrangements. Never feel pressured into arranging a funeral on a timeline advised by a funeral home. The family may choose to wait weeks or months.
4. Funeral Payment
This is a considerable expense at a difficult time. Your loved on may have had funeral bonds, funeral insurance or a pre-paid funeral. If you are unsure you can search their files or emails. A small benefit may be available from Centrelink or the DVA, if eligible. The funeral may be paid from the deceased’s bank account, if they had sufficient balance. If there is no other way to pay for the funeral the immediate family will be responsible for the bill.
5. Death Certificate
The death certificate is essential to manage the deceased estate. The funeral director usually applies to Births Deaths and Marriages (BDM) for this on your behalf. The original usually needs to be shown or surrendered when applying to the court for probate. Next of kin, solicitors and the executor may apply to BDM for duplicate death certificates.
6. Organisations to be immediately notified
It’s advisable for a small number of companies need to be contacted immediately by the next of kin so that payments can stop or refunds can be requested. Some of these companies include: health insurance providers, Dept of Human Services, the ATO, banks and financial institutions, pension fund, foreign pensions, utilities. Many organisations can freeze the account on advice from any person and presentation of the death certificate. A court grant may be necessary for an asset to be released or a cheque may be issued in the name of the estate.
7. Apply for probate – The official proving of the will
The executor is the person named in the will as being responsible for the deceased estate. If the estate is simple enough the executor may apply themselves. Where the estate is more complicated or if the executor prefers they may engage a solicitor to apply for probate from the Supreme Court. Once approved the court issues a ‘grant of probate’. The grant is accepted by all Australian organisations and allows the deceased’s assets to be moved into the estate or liquidated.
If the deceased did not have a will the senior next of kin should instead apply to the court for ‘letters of administration’. This document has the same functionality as a grant of probate.
8. When you don’t need probate
Probate is not always necessary as some organisations may release the asset to the next of kin. Banks do not require a grant of probate or letters of administration where the balance is under $15,000. If the deceased had a joint bank account or property owned as ‘joint tenants’, the survivor will assume ownership of the asset without the need for a grant. Do your research before applying for probate as there may be no organisations that require the grant. The next of kin may request access to the deceased’s email account from the provider, which is helpful as many organisations and account numbers may be discovered.
Be mindful that a grant may be inevitable. Certain organisations, such as land title registrars, retirement units, and banks holding more than $50,000 may insist on a grant of probate or letters of representation before they can release the asset to the estate.
9. Organisations to be notified when convenient
The executor, next of kin or beneficiary may apply to the deceased’s superannuation fund for the release of all funds at any time. Some super policies may also have life insurance, so check with the fund.
Many organisations require the executor to request transfers or account closures. If you have set up a deceased estate, the executor should notify organisations such as; banks (where the balance is over $15,000), vehicle registrations (if the plate is being transferred), sale of business (if applicable), utilities, share registries and more.
10. Establishing and managing the deceased estate
The deceased estate is established once the court provides a ‘grant of representation’ to the executor or, if there was no valid will, ‘letters of administration’ to the administrator. One of the first steps will be have the bank change the deceased’s account over to an estate account, eg: ‘Estate of Jane Doe’.
The executor is responsible for payment of insurance policies on property and final bills from the estate’s bank account. The executor needs to keep a register of all assets and liabilities. The executor has the right to sell the estate’s assets to meet liabilities. The executor may sell of lower priority assets in preference of higher priority assets to settle debts. The accounts will be adjusted and beneficiaries compensated. The executor will also be responsible for the deceased’s final tax return.
11. Distribution and closure of the estate
Once all creditors have been paid, the balance of the estate can be paid out according to the terms of the will. If the deceased did not have a will, the first senior next of kin will receive the entire estate. This starts with the spouse. If no spouse, then children, followed by parents and siblings. This is known as the scheme of intestacy and varies slightly between Australian state and territories.
Once all beneficiaries have been gifted and there is no further business the executor may close the estate account. At the conclusion, an estate return is to be filed with the ATO. The executor may become a trustee if a trust is required. Trusts manage legacy gifts, such as ongoing payments to disabled persons or assets held in trust until minors come of age.