Estate Bank Account Setup & Transfer of Deceased Estate Property

After going through the process of applying for a Grant of Probate or Letters of Administration, the most common questions people ask include: Once Probate is granted, what happens next? What happens after the Grant of Probate or Letters of Administration is finally issued to the Executor or Administrator?

With the issuance of the Grant of Probate or Letters of Administration, you are now empowered to formally communicate with various organisations and government agencies to initiate the transfer of assets and liabilities to the Estate. This includes bank accounts, investment accounts, real estate properties, vehicles, shares, and any other holdings that were owned by the Deceased.

When approaching organisations and government agencies, it is imperative to provide them with a certified copy of the Grant of Probate or Letters of Administration. This documentation serves as evidence of your legal authority to administer the Estate. Alongside this, you may also need to furnish a certified copy of the Death Certificate and any other supporting documents that the respective institutions may require.

It is equally important to address the deceased person's liabilities and debts during this process. You should inform creditors of the passing of the deceased and provide them with the necessary documentation. This allows for the orderly settlement of any outstanding debts from the assets of the estate.

The role of an Executor (or Administrator) is crucial in overseeing the distribution of assets and funds in accordance with the deceased person's wishes or in adherence to legal requirements (such as the applicable laws of intestacy in the absence of a Will).

In order for you as the Executor or Administrator to collect all assets of the estate for finalisation and distribution you need to set up the Estate.

Attention to detail, communication with various parties, and adherence to legal procedures are essential to set up the Estate for a successful and smooth transfer process. This will allow the deceased person's assets held by organisations to be transferred into your custody. It encompasses the transfer of cash, superannuation death benefit claims, insurance benefits, reimbursements, property and other types of assets.

• Register for a Tax File Number (TFN) for the Deceased Estate to avoid paying tax at the highest income tax rate by:
• registering online here;
• completing the Tax File Number (TFN) – application for a Deceased Estate form; or
• registering through your tax agent; and
• Open a bank account for the Deceased Estate. These are usually called 'Estate of the Late' bank accounts. As you work through the process with the banks as outlined in 30.3 – Set Up Estate Bank Account (Estate of the Late Account) you will be asked to set this up. You will likely need a Grant of Probate or Letters of Administration.

Where a testamentary trust is part of the Will or if you and the Beneficiaries have agreed to set a post-death testamentary trust up as outlined in the previous Step 29 – Opening a Testamentary Trust per the Will, you may still need to complete the above steps for the Deceased Estate if some cash assets will be finalised and distributed outside of the trust.

As you embark on this task, ensure you maintain meticulous records of all communications, documents sent, and received from organisations and government agencies. Clear and accurate records will not only facilitate the administration process but also serve as crucial evidence of your diligent execution of your fiduciary duties.

While you navigate the process of asset and liability transfer, it is advisable to consult professionals, such as lawyers, accountants and financial advisors, to ensure that all legal and financial aspects are appropriately handled. Additionally, legal counsel can provide guidance and assistance in the event of complex or unforeseen issues.

Estate administration includes setting up the Estate bank account to which all financial assets will be transferred to. Only the Executor(s) or Administrator(s) will have access to this account while in their trust and the Estate is being administered fully.

Any liabilities, bills, expenses, reimbursement claims and taxes will be paid from this account.

• Contact the bank: Contact your or the deceased person's bank to enquire about 'Estate of the Late accounts'. It is easiest to do this with a bank you already have an account with to save you from having to be identified and provide your information to open a new account.
• Confirm your identity:If you choose another bank to open an 'Estate of the Late' account, you will need to provide identification and personal details.
• Establish your role: Provide the bank with a certified copy of the Grant of Probate or Letters of Administration to confirm your role as Executor or Administrator.
• Provide required information: The bank will request specific information, including the deceased's full name, account number(s), and details about the Estate. You may need to complete forms or provide additional documentation as requested.
• Confirm access: The bank will provide you with details on how to access the Estate bank account via online banking or other means.
• Transfer funds to the Estate of the Late account: Depending on the bank's policies and the amount of funds involved, you might need to open a Deceased Estate bank account to receive the funds from the deceased person's account. Transfer the funds accordingly. This is outlined in more detail in Step 30.7 Transfer Funds From Banks and Other Financial Institutions below.

If you have applied for Grant of Probate or Letters of Administration to the relevant Supreme Court, and haven't heard back within the standard processing periods as outlined in Step 27.11, you should enquire with the court.

By this time, it is also assumed that you have secured and organised all essential paperwork, including originals and certified copies of death-related documents. See Step 11 – Certifying Death-Related Documents

Once you have received the documents, you should prepare certified copies that can be submitted to each organisation that requires these to initiate the funds release and transfer. Please note some organisations may require seeing the original documents and will not allow certified copies.

• Health Professionals: chiropractors, dentists, medical practitioners, nurses, optometrists, pharmacists, physiotherapists;
• Legal Professionals: legal practitioners, patent attorneys, trademarks attorneys;
• People in Court Positions: bailiffs, justices of the peace, judges, magistrates, registrars, or deputy registrars, clerks, masters of a court, CEOs of Commonwealth courts;
• Elected Government Representatives: Federal, State or Territory or Local;
• Public Servants: Federal, State or Territory or Local – employed for five years or more;
• Members of: Chartered Secretaries Australia, Engineers Australia, Australasian Institute of Mining and Metallurgy;
• Bank officers, building society officers, credit union officers, finance company officers – employed for five years or more, veterinary surgeons, accountants (member of ICA, ASA, IPA or CPA, ATMA, NTAA); and
• Ministers of religion, marriage celebrants, notaries public, police officers, sheriffs or sheriff's officers, teachers (full-time) at a school or tertiary education institution.

• Justices of the Peace;
• Notaries public;
• Australian Consular Officers or Australian Diplomatic Officers (within the meaning of the Consular Fees Act 1955); and
• Employees of the Commonwealth or the Australian Trade Commission who works outside Australia.

From your previous contact with each organisation to find out the balance of the assets and liabilities held by them, you were likely informed about what other specific forms and documents are needed for each organisation.

Remember, if you used the simplyNotify Tool or notified the organisations directly of the death, you may have received information or even a complete kit with forms and necessary documents via email or post, which you should review.

Going through your finalised Assets & Liabilities Inventory showing all Estate assets, you can work your way through one-by-one to make a request for transfer or release. Make sure to keep track of the dates when you submitted the requests and when you expect the transfer to occur, so you can monitor the progress in case you need to follow up.

Some organisations will allow you to email or post documents for an asset release while others may ask you to post the documents or even make an appointment with you in person. Make sure to always check beforehand what documentation, forms and identification are required prior to submitting anything to prevent unnecessary processing time delays. Also, make sure that the original documents are returned to you or else make it a point to only submit certified copies.

You will need to inform the relevant organisations of the bank account details, if you want the particular asset to be transferred to the trust account, 'Estate of the Late' account or the Next of Kin's account.

It is recommended that you use our Assets & Liabilities Inventory to ensure all Estate assets and liabilities are accounted for at all stages of the administration process. Any oversight or error at this stage can have significant ramifications on the succeeding steps and is certain to cause undue stress on all parties concerned.

30.6.1 Overview

You will, in most cases, not be able to transfer property (real estate) directly to the Beneficiaries without transferring it to the Deceased Estate first.

Where a property was solely owned by the deceased person or as tenants in common, the transfer of property typically involves a two-step process. Initially, the property must be transferred to the Deceased Estate to establish the Estate's ownership. This enables the Executor or Administrator to take custody of or manage the property, including potential sale or subsequent transfer to the designated Beneficiaries. This sequential approach ensures proper legal transition and allows for effective decision-making regarding the property's ultimate disposition as outlined in Step 34 – Finalisation & Distribution of Estate to Beneficiaries

30.6.2 Transfer Property From the Deceased Person to the Deceased Estate

As the Executor or Administrator, you should read the below steps on how to transfer the property to the Deceased Estate. The Deceased Estate property transfer process (to transfer property from the Deceased Estate to the Beneficiaries) is explained in Step 34 – Finalisation & Distribution of Estate to Beneficiaries.

Note: You may be personally liable if a claim against the Estate is made and you didn't follow the notice requirements and periods prior to distribution.

Remember, where deceased estate property is owned jointly between the deceased person and another person, the property will, in most cases, be transferred to the surviving joint owner. The process to transfer property is outlined by state/territory below under the heading Joint Tenants.

simplyEstate has listed the most common processes by state/territory in which the property is registered for your convenience as follows:

Note: Stamp duty on the transfer of property from a Deceased Estate generally applies, except where the property is transferred to a surviving joint tenant per the property title or when the property is transferred to the Estate, so that the Executor or Administrator can deal with the property in accordance with the Will, legislation and/or as agreed with the Beneficiaries.

30.6.3 Can a Beneficiary stop the sale of a property?

There may be instances where a Beneficiary (or Beneficiaries) may be unhappy or opposed to selling property that forms part of the Estate. Hence, the question: Can a beneficiary stop the sale of a property?

A Beneficiary does have the ability to contest or seek to halt the sale of a property that is part of the Deceased Estate under certain circumstances. However, their ability to do so is subject to legal processes and considerations.

Beneficiaries who believe that the sale may not be in line with the deceased's intentions, the terms of the Will, or applicable laws, can explore legal avenues to challenge the sale. Beneficiaries should consult with legal professionals experienced in Estate matters to understand their rights, options, and the potential impact of their decision on the overall Estate Administration process.

30.6.4 Transfer of Property From the Deceased Estate to Beneficiaries

At this stage, it is assumed that Estate ownership of the property in question has already been legally established or confirmed. It is now time to transfer property from the Deceased Estate to the Beneficiary (or Beneficiaries).

• Valuation: The property value is assessed to determine its worth within the Estate (see Step 17 – Deceased Estate Property Valuation & Preparation for Rent or Sale).
• Grant of Probate/Letters of Administration: If required, proof or legal authorisation is presented to authorise the Executor (or Administrator) to manage and distribute Estate assets, including the property (see Step 27 – Grant of Probate Application or Applying for Letters of Administration).
• Tax implications: Any tax liabilities associated with the property transfer are addressed, including capital gains tax considerations (see Step 28 – Inheritance Tax & Tax Effective Estate Distribution in Australia).
• Property title transfer: A legal transfer of property title occurs from the Estate to the beneficiaries. This involves lodging documents with the relevant land titles office (see Step 34 – Finalisation & Distribution of Estate to Beneficiaries).
• Record-keeping: Thorough records are maintained, documenting the property transfer process for transparency and future reference.

It is not uncommon that the property is sold by the Executor (or Administrator) on behalf of the Estate, and the proceeds of sale distributed accordingly.

When it comes to the transfer of funds from banks and certain financial institutions, you (and perhaps the Beneficiaries as well) may find yourself asking: How long do banks take to release money after Probate in Australia?

The timeline for banks to release money after Probate in Australia can vary. Generally, it takes several weeks to a few months for banks to process and release funds. Factors influencing the duration include the complexity of the Estate, compliance requirements, and any outstanding debts. It's advisable to consult the specific bank and legal professionals to get accurate estimates in each case.

30.7.1 Transfer Lower Value Assets

Assets that are of a lower value and don't need a Grant of Probate or Letters of Administration may have already been transferred by you.

30.7.2 Transfer Higher Value Assets

Where a Grant of Probate or Letters of Administration is needed, can now also be requested to be released and transferred to the 'Estate of Late' bank account or trust bank account you created.

30.7.3 Address Outstanding Transactions

Review recent account activity to identify any outstanding transactions, such as pending deposits, withdrawals, or payments. Ensure that any outstanding checks or payments are addressed.

30.7.4 Settle Liabilities

If there are any outstanding debts or liabilities, work with the bank to settle them using funds from the Estate. This may include paying off loans or credit card balances.

Like other assets, shares held in the deceased person’s name generally need to be transferred to the Deceased Estate. Once this has occurred, shares can either be sold or transferred from the Estate to the Beneficiaries.

Follow the steps outlined in Step 20.6 Selling or Inheriting Deceased Estate Shares on Death.

• Timeframe: The process duration may vary. However, the RAD should be refunded within 14 days of the issuance of the Grant of Probate or Letters of Administration.
• Documents needed:Typical documentation required to claim the RAD include the Death Certificate, Grant of Probate or Letters of Administration, the original agreement between the resident and aged care provider and details of the Estate bank account.

Note: Interest on the RAD continues accruing until the deposit is repaid, transferred, or deducted. Also, providers may deduct outstanding fees or charges from the RAD before repayment.

If you established in Step 16 – Deceased Estate House Clearance that the deceased person paid an aged care bond or refundable accommodation deposit (RAD), you should find out from the aged care provider or nursing home what documents you need to provide together with the notice to request the transfer of the bond or deposit to the Estate.

• the entire bond or deposit;
• the bond or deposit minus any eligible deductions such as rent and care costs; and/or
• interest since the date of death.

Getting the appropriate legal advice and maintaining open communication with the aged care provider is recommended for a smooth and timely process.

Tip: Check the aged care agreement to confirm the arrangement and what the total claim amount should be.

Once all requests for asset transfer or release were made, you should follow up by checking the 'Estate of the Late' or trust bank account to determine if cash was deposited. If the release was not made in cash but in the form of property (real estate), you can search for the title to determine if the owner's name has been legally changed.

Make sure to keep all receipts of funds deposited, transferred and provided to the Estate.

Where the Will requires an asset to be sold so that the cash can be distributed, you as the Executor or Administrator, can now complete the sales process of those assets.

Note: Make sure to keep evidence of the valuations, advertising and sales contracts to show that you acted in the best interest of the Estate and managed to sell each asset at the market rate in case you are questioned later.

Where the Will is silent about selling assets, you ideally should have discussed and agreed with the Beneficiaries on how the Deceased Estate is to be best structured as per Step 28.4 – Deceased Estate Structure. You may have agreed to sell some or all assets for cash distribution. You should update the inventory to record sales and cash proceeds.

Alternatively, you may want to discuss with the Beneficiaries how they would like the assets in question to be split and if a sale is needed. Make sure that you and the Beneficiaries seek tax advice, so everyone can make an informed decision.

As outlined in Step 14 – Paying Deceased's Bills Before Probate (Solvent & Insolvent Estates) you should have always kept a good eye out for any Deceased Estate bills, debt notices or debt repayment requests that are due to avoid late payment, additional interest or other charges while you administer the Deceased Estate.

Now that you have a good understanding of the Estate value, if it is solvent or insolvent and funds are being transferred to the 'Estate of the Late' or trust bank account, you may want to start making outstanding payments that you had negotiated a deferral earlier. Refer to Step 14 – Paying Deceased's Bills Before Probate (Solvent & Insolvent Estates) for more details.

You must remember that as the Executor or Administrator, you are also responsible for managing the taxes of the Estate for the duration it is in your custody. More details are available in Step 32 – Preparing the Deceased Estate Tax Return – Death & Taxes.