Estate Administration: How Do I Administer a Deceased Estate in New South Wales?

If probate has been granted, then it is the responsibility of the Legal Personal Representative to administer the deceased’s estate in NSW in accordance with the terms of the Will, or legal rules if there is no Will. The Legal Personal Representative calls in the estate property to pay any debts that the deceased still owed upon death. Once debts have been paid, the Legal Personal Representative distributes the remainder of the deceased estate property to the beneficiaries named in the Will of the deceased or by law. Once debts have been paid and assets have been distributed, the estate administration process is complete. 

How long do you have to settle an estate in NSW?

The Legal Personal Representative must apply for a grant of probate within six months of the date of death of the deceased or face legal consequences for the delay. 

Once probate has been granted, the Legal Personal Representative should refrain from administering the estate until six months after the date of death. If the estate is administered before this time has passed and a person makes a successful challenge to the Will, then the Legal Personal Representative may be personally liable for their loss. 

The Legal Personal Representative has a duty to ensure that there is no undue delay in the estate administration process and may be personally liable if they fail to act within a reasonable time. Estate distributions should generally be made within 12 months after the date of death. 

What is the ‘deceased estate 3-year rule’?

The deceased estate 3-year rule in New South Wales is a regulation pertaining to capital gains tax obligations. Specifically, the executor or beneficiary of a deceased estate has a grace period of two years from the date of death to sell the deceased's main residence without incurring any capital gains tax, although a one-year extension can be requested if needed. After this period, the asset is subject to capital gains tax, which can significantly affect the net proceeds from the sale. The purpose of the deceased estate 3-year rule is to provide the estate executor or beneficiary sufficient time to manage and distribute the estate's assets. It is important to note that this rule is conditional; for example, the property cannot be used to generate rental income during this three-year period.

How do I begin my estate administration duties?

If you are a Legal Personal Representative seeking to begin the estate administration process, we encourage you to reach out to our experienced probate lawyers who would love to assist you with compassion and sensitivity. We invite you to book a free 15-minute discovery call using this link. 

By Jaime Dunn