The assets of a deceased person, especially their property, is the deceased estate. While some of the deceased individuals who have valuable property may not leave a will, usually if they are wealthy and own a lot of property, they will make a will with the help of lawyers. In the will, they will specify the beneficiaries of their estate. They will also determine the executor of the will. Who will make the funeral arrangements, list of the assets and debts of the deceased, handle the insurance, file tax returns for the estate of the deceased. The executor is often a lawyer or a trustee.
In case no executor is specified for the estate in the will by the deceased, the court will appoint an estate administrator who will perform the duties of the executor which are listed above. The administrator of the estate is usually someone who is close to the deceased person and is a primary beneficiary of the estate. Like the executor of the property, the administrator should also get the will probated, and get the grant of representation from the relevant court to handle the estate.
The primary duty of executor that the debts of the deceased are settled from the proceeds of the estate. When any person with property and assets dies, the deceased estate should be reported to the relevant government body. Since the process of getting probate for the will usually take some time, which may vary from a few months to up to two years, the property will be controlled by a trust till then. After the probate is complete, the executor is given some time to complete all the formalities like valuation of the estate to settle it, usually one year.
In case the deceased person did not leave a will, the Australian inheritance laws are applicable, with family members and relatives being the primary beneficiaries. For some assets like the funds in the bank, the deceased person may specify a nominee. Similarly, the deceased may specify which family member or friend will inherit jewellery, paintings and other collectibles, in their will. The inheritance taxes which have to be paid vary in different countries. In Australia, citizens do not have to pay any charges for the property and other assets which they are inheriting.
Often there are many beneficiaries, While it is simple to divide the money among beneficiaries in the ratio or amount which has been specified. In the case of property, deciding the real value of the property is more complicated. There is always a possibility that the value of the property will increase or decrease after some years, so the notional value is not accurate. In some cases, one of the beneficiaries may wish to retain the property and will pay off the others who are also the beneficiaries with a stake in the property. However, in most cases, the recipients of the deceased estate will prefer to auction the property.
In case all the beneficiaries of the deceased estate agree, and the will does not prohibit property sale, the executor of the will can arrange for a deceased estate auction. Since most properties have several assets like furniture, interior decor item, gadgets, appliances, the executor should arrange to sell these items first. For this, it is advisable to use the services of a reputed auction firm like Historic Monroe which specializes in auctions of deceased estates. Their staff will first visit the estate free of cost, and then offer a written proposal for selling the deceased estate.
The staff will do a content valuation of the estate. They may offer to sell the content on behalf of the executor in a public auction or sell it directly to them for a special price. The executor can choose either option depending on his convenience and the kind of assets in the property. After the goods are sold, the auctioneers will pack and dispatch the items sold, and clean the property, so that it can be sold in public auction or using other methods. Many real estate buyers are interested in purchasing deceased estate since the cost of the property is usually lower than the market rate. Some websites provide information on deceased estates available, and real estate agencies may also have information.