Being named the executor of a will can feel like a quiet honour. Someone trusted you to carry out their final wishes. Then the reality lands: it is an unpaid job, it can swallow months of your life, and you will often have to pay real costs out of your own pocket before you see a cent back from the estate.
Most people have no idea what they are signing up for until they are in the thick of it. So before the bills start arriving, here is a clear-eyed look at what the role of executor of a will actually involves, the six costs that catch people off guard, and how to manage the cash gap while the estate catches up.
What does an executor of a will actually do?
In simple terms, you are the person responsible for sorting out everything the deceased left behind. The job runs from the day they die until the estate is fully wound up and the beneficiaries have their share. Along the way you will usually need to:
- Locate the will and the assets, and notify banks, super funds, utilities and government agencies.
- Apply to the Supreme Court for a grant of probate, which confirms the will is valid and gives you authority to act. In New South Wales you are generally expected to apply within six months of the death.
- Pay the deceased’s debts, bills and tax from the estate.
- Sell or transfer assets, then distribute what is left to the beneficiaries.
- Keep careful records of every dollar in and out, because you have to account to the beneficiaries for all of it.
The NSW Government’s guide for executors walks through each step, and the broad shape is the same in every state and territory.
The catch nobody mentions: you pay first, claim back later
Here is the part that blindsides people. The estate’s money is frozen until probate is granted, which can take weeks on top of the time it takes to prepare the application. But the bills do not wait for the court. Funeral homes, councils, insurers and the taxman all still want paying.
So in practice, the executor often has to cover these costs personally, or from a relative’s pocket, and claim them back later. You are entitled to be reimbursed for all reasonable expenses, but reimbursement only comes once probate is through and the estate has funds available. That gap, sometimes months long, is where the financial pressure on an executor really bites.
6 costs that catch executors off guard
Every estate is different, but these are the costs that most often land on the executor before any reimbursement appears.
1. Funeral costs
Usually the first and the biggest. If the executor arranges the funeral, they can be personally liable for the bill. Many banks will release money straight from the deceased’s account to cover it once you provide the invoice and the death certificate, so always ask. If they will not, the cost falls to you until the estate repays it.
2. Probate court fees and registry notices
Applying for probate carries court filing fees, which in most states scale with the value of the estate, plus a fee to publish the required online notice. These are payable up front, before the estate’s funds are released.
3. Legal and accounting fees
Most executors lean on a solicitor for the probate application and an accountant for the deceased’s final tax return. Some firms will wait to be paid from the estate, but many will not, leaving you to fund their fees in the meantime.
4. Property holding costs
If the estate includes a house, it does not look after itself while probate grinds on. Council rates, insurance, utilities, maintenance and even cleaning to prepare it for sale all keep ticking over. Letting the insurance lapse is a risk you cannot afford, because you can be held responsible for damage to a property you failed to secure.
5. Valuations and selling costs
Assets often need professional valuations, and if a property is sold you are up for agent’s commission, conveyancing and marketing costs. These come out of the proceeds eventually, but some have to be paid along the way.
6. Your own time and travel
This is the hidden one. Administering an estate can mean taking time off work, sometimes unpaid, and if you live far from the deceased, airfares, petrol and parking add up fast. Generally you are not paid for your time at all, which brings us to the next question.
Does an executor of a will get paid?
Mostly no, at least not for your time. The law expects you to act for free. You are always entitled to be reimbursed for reasonable out-of-pocket expenses, provided you keep the receipts, but being paid for the hours and the stress is a different matter.
You can only be paid for your effort in limited cases: where the will specifically authorises it, where all adult beneficiaries agree, or where the Supreme Court grants what is called commission. Commission is set by the court and is usually a modest percentage of the estate, never a windfall you can count on. And if you are also a beneficiary, the law generally assumes your gift under the will is your reward for taking on the job.
The personal liability you cannot ignore
This is the bit to take seriously. The executor of a will who gets it wrong can end up personally out of pocket, and not just for expenses. According to NSW Trustee and Guardian, if you distribute the estate before all debts and tax are paid, you may have to cover the shortfall yourself.
The ATO can hold you personally liable for the deceased’s unpaid tax if you hand out the money too soon. You can also be on the hook for selling assets below market value, or for damage to a property you failed to insure. The lesson is simple: do not rush to distribute, get the debts and tax squared away first, and when in doubt, get advice.
How long does it all take?
Longer than most people expect. The grant of probate itself usually comes through within weeks of a clean application, but that is just the start. The ATO notes that winding up a deceased estate commonly takes six to twelve months, and a complex one can run well beyond that. If you are an executor fronting costs, that is potentially a long stretch before reimbursement arrives.
Managing the cash gap while you wait
If you are fronting estate costs and feeling the pinch, you have options, though the right one depends on your situation. Start with the simplest: ask the deceased’s bank to release funds for the funeral directly, since many will. Push non-urgent costs back where you can.
If you are an executor who is also a beneficiary, an inheritance advance can bring forward part of your own inheritance to cover the costs, repaid from the estate when it settles. If you are not a beneficiary, or you would rather keep things separate, an emergency loan or an unsecured personal loan can bridge the gap instead. As an accredited finance broker, Get A Loan compares options across our panel of more than 70 lenders, and our service is free for you. Whatever you choose, fronting money while you are grieving and stretched is a moment for a clear head, so it is worth reading our warning about borrowing first.
Executor of a will: the quick checklist
- You are responsible for the estate from death until it is fully distributed.
- In NSW, apply for probate within six months of the death.
- Expect to pay funeral, legal, property and other costs before reimbursement.
- You are reimbursed for reasonable expenses, but generally not paid for your time.
- Distributing before debts and tax are paid can make you personally liable.
- Full administration commonly takes six to twelve months.
- Keep receipts for everything you spend on the estate’s behalf.
What if the role feels like too much?
Being an executor is a heavy job, and there is no shame in finding it overwhelming, especially while you are grieving. For a complex estate, a specialist solicitor is worth their fee and can keep you out of trouble. You are also not forced to accept the role: you can renounce it before you start, or appoint a trustee company such as your state’s public trustee to act in your place. If the costs are causing real financial stress, a free financial counsellor through the National Debt Helpline on 1800 007 007 can help you find a way through.
Final Thoughts
Being the executor of a will is a genuine responsibility, and the costs and the cash-flow gap are the parts nobody warns you about. Know what you are likely to pay, keep every receipt, never distribute before the debts and tax are settled, and lean on professionals where the estate is complicated. Handle it methodically and you will do right by the person who trusted you, without being left out of pocket yourself.
Disclaimer
The information in this article is general in nature and does not take into account your objectives, financial situation or needs. It is not personal advice, tax advice, legal advice or a recommendation to apply for any product. Before acting on any information, you should consider whether it is appropriate for your circumstances and seek independent financial, legal and tax advice where appropriate.
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