Funeral expenses are the first debt in relation to a deceased estate that are to be paid.

The Executor or Trustee is entitled to claim any expenses relating to the administration of the estate that has been properly incurred before any other debts are paid.

Regularly, Executors or Trustees use their own personal funds to meet estate expenses, or at least the initial expenses before a Grant of Probate or Letters of Administration have been obtained and the deceased’s assets such as bank accounts can be accessed.

Executors or Trustees are indemnified by the estate for all monies that have been properly spent in the administration of the estate however, if there are insufficient funds in the estate, the estate may not be able to pay or reimburse such expenses. Special rules apply to those insolvent estates.

Beneficiaries are not liable for the debts of a deceased person. If however, the deceased person gave a beneficiary substantial assets shortly prior to passing away or if a beneficiary wrongly took assets of the deceased, those assets may be recoverable by an executor for the payment of creditors and proper distribution under the Will, particularly if the assets were given away to avoid paying the creditors.

Contact us

We can assist and advise the executors or administrators of a deceased person’s estate in relation to the proper administration and distribution of the estate and in obtaining a Grant of Probate or Letters of Administration where required.

For free initial telephone advice in relation to the proper administration of a deceased person’s estate or in relation to your own estate planning needs, please call one of our Estate and Estate Planning Lawyers on (02) 9525 8688.