‘Administer the estate’ means locating and protecting your loved one’s assets (land, money, property rights, investments, chattels, etc), paying any debts, resolving any claims, filing any tax returns, and distributing what’s left to the right people (‘beneficiaries’).
You have to do what the will says, or what the law says if there is no will. You cannot change it, UNLESS (a) everyone who is affected by the change is over 20 and agrees; OR (b) the High Court agrees.
You have to keep records to show what was there, where it went, and why.
Use Kiwilaw for broad general guidance, and for land.
Use professionals wisely, as appropriate – solicitor, accountant, valuer, financial adviser, mediator, property manager, real estate agent.
If you haven’t already done so, use mytrove.co.nz to notify government agencies, banks, insurance companies, local councils, and power companies of your loved one’s passing. (You may find bank accounts you did not know about.)
Get it right
Know what you need to do, and how to do it.
Make a plan.
Get professional advice and assistance – as much or as little as you need.
Executors and administrators have legal duties and powers. Most of them are common sense, although sometimes that isn’t so ‘common’. Get specific legal advice if you are unsure.
Keep the beneficiaries informed on a reasonable basis. What is ‘reasonable’ will vary, depending on circumstances. Get specific advice if there are issues here.
Important principles
- know what the will means – you may need legal advice to check this
- do what the will says – not what you think it should have said
- if there’s no will, find out what the law says about who gets what – and then do it
- double-check who are the beneficiaries of the estate and make sure you have their up-to-date contact details
- if you cannot locate a beneficiary, get legal advice about what to do with their share
- be impartial – don’t give more information to some beneficiaries than to others, and don’t favour one beneficiary more than others
- deal with the estate assets properly – don’t use them for your own benefit, don’t waste them, do invest them wisely if they are not being distributed immediately
- be honest
- get advice quickly if you need it
- if all the beneficiaries agree and are over 20, the will can be changed, or (if there is no will) the distribution set out in law can be changed – this should be documented properly and everyone needs the opportunity to have their own legal advice
- if someone is under 20 or someone disagrees, you need High Court approval for any changes, otherwise you may have to pay out yourself, to whoever misses out
- if there is more than one executor/administrator, they must act jointly – that means they must agree on what is to be done, before one of them does it
- if the executors/administrators cannot agree, they should get expert advice; professional mediation services can help; if they still cannot agree, they can apply to the High Court for directions
- if you are the executor/administrator, you should progress things steadily
- check whether any tax returns have to be filed for the estate – usually they do, and there may be a refund
- you should also allow enough time for any claims or debts to be dealt with before you distribute any of the estate to beneficiaries – otherwise you can be personally liable to pay, if there is no money in the estate and a legitimate claim is made – get legal advice about the details of this
