Executor Handbook NSW | 10 Common Mistakes Executors Make
None of these are rare. All of them are avoidable. Most cost money to fix. Some cost relationships. Knowing what to watch for is half the battle.
1. Starting to Clear the House Too Early
The most common mistake. Clearing in the first month, usually with good intentions and family pressure.
Why it matters. Until probate is granted and you've completed an inventory, everything in the house is estate property. You're personally responsible for it. Clearing without an inventory means you can't prove what was there or justify what happened to it. Junk turns out to be valuable. A beneficiary claims you threw away their inheritance.
What to do instead. Wait until probate is granted. Do a thorough inventory first. Photograph valuable items with date stamps. Get appraisals before removing anything. Time is on your side.
2. Forgetting the Unoccupied-Property Insurance Clause
Most home policies lapse automatically once a property has been unoccupied for 60 days (sometimes sooner). You assume the policy is still active. It's not.
Why it matters. The property gets burgled, or a pipe bursts and causes water damage. Insurance won't pay because the property wasn't covered. The loss comes out of the estate. Beneficiaries lose money because you didn't ask about one clause.
What to do instead. Ring the insurer the first week. Ask specifically about unoccupied-property cover. Confirm the policy is active and what the conditions are. Most insurers can extend cover for a small fee if you ask early.
3. Giving Sentimental Items Away Before Family Has Agreed
A teapot, a watch, a piece of furniture. These cause more fights than the money itself.
Why it matters. You give something away thinking it's junk. Six months later, a beneficiary says it was supposed to be theirs. Relationships fracture. Everyone gets angry. You're in the middle.
What to do instead. Photograph items where they sit. Ask all beneficiaries what they want before you distribute anything. Put preferences in writing. Agree on the rules (taking turns, fair allocation, etc.) before starting. Document everything.
4. Paying Estate Expenses from Personal Accounts
You pay the solicitor, the probate filing fee, the valuer, the property maintenance. You tell yourself you'll reimburse yourself from the estate later.
Why it matters. You lose track. Records become messy. Beneficiaries question whether you actually spent that money or pocketed it. You end up paying for it yourself because you can't prove the expense.
What to do instead. Open a dedicated estate account on day one. Every dollar for the estate goes through it. Keep all receipts. The solicitor will help you account for these expenses when you distribute. Clear records protect you.
5. Distributing Assets Before Debts Are Paid
A beneficiary wants their share. You give it to them. Later, a creditor claim comes in. You don't have funds left. Executors can be personally liable for debts paid out of money already distributed.
Why it matters. You're liable. You might have to pay the debt personally. It's a serious breach of fiduciary duty.
What to do instead. Pay all debts first. Funeral costs, legal fees, property maintenance, rates, council charges, mortgages, personal loans. Make sure the accountant has done the final tax return. Only then distribute what's left to beneficiaries.
6. Losing Track of Paperwork
One email folder becomes ten. Receipts end up in different places. You can't find a document when you need it.
Why it matters. You can't account for your actions. You can't prove you paid something. You can't defend yourself if a beneficiary questions your decisions. Administration becomes chaotic.
What to do instead. One folder, physical or digital. All receipts go in it. All correspondence goes in it. All documents stay in it. Use a spreadsheet to track major expenses. Back everything up. Thank yourself when you need to find something in month 11 of the process.
7. Not Keeping Beneficiaries in the Loop
You handle everything quietly, thinking you're being efficient. Then you tell beneficiaries about distributions in month 8 and they're upset they weren't involved.
Why it matters. Silence breeds suspicion. Beneficiaries assume you're hiding something or managing things badly. Disputes start over nothing. Relationships crack.
What to do instead. Send a short monthly email to beneficiaries. "Here's where we are. Here's what happened this month. Here's the timeline for next steps." It takes 20 minutes and prevents most disputes. People want to be informed. Transparency builds trust.
8. Missing the Super Death-Benefit Claim Window
Super funds have their own claim processes and their own deadlines. Some are as short as 3-6 months from the date of death.
Why it matters. You miss the deadline, and the beneficiary's entitlement is lost. It's a significant amount of money in most cases. The beneficiary loses out. It's a serious breach of your duty as executor.
What to do instead. Contact the super fund within the first two weeks. Ask about the death-benefit claim process and the timeline. If there are multiple super accounts, contact all of them. Keep records of deadlines. Put them in your calendar.
9. Trying to Do Everything Alone
You're grieving. You're managing probate. You don't want to burden anyone else. You try to handle everything yourself.
Why it matters. You miss things. You get overwhelmed. Simple tasks take longer than they should. You burn out. You make mistakes because you're tired and stressed.
What to do instead. Solicitors, accountants, valuers, and property specialists all exist for a reason. They're experts. Using them saves you time, money, and stress. Bring people in early. Delegate. Share the load. See our NSW contacts guide for professional services you'll need.
10. Forgetting to Look After Yourself
You're exhausted. You're grieving. You're managing financial and legal things you've never done before. You skip meals. You don't sleep. You keep going because there's a list.
Why it matters. You get sick. You make bad decisions. You snap at people. You prolong your own grief instead of processing it. You make mistakes because you're not thinking clearly.
What to do instead. Take breaks. Step away from the estate for a few days. Talk to people. Grieve. Delegate where you can. If you're feeling overwhelmed, that's the signal to bring in professional help, not to push harder.
FAQ
Can I be held liable as executor?
Yes, if you breach your fiduciary duty. This means acting dishonestly, not keeping records, making decisions that aren't in the beneficiaries' best interests, or distributing assets inappropriately. Professional indemnity insurance and a solicitor protect you.
What if I realise I've made a mistake?
Tell your solicitor. Some mistakes can be fixed. If you distributed money incorrectly, you might be able to recover it. If you gave something away that shouldn't have been given, you might be able to retrieve it. Don't hide mistakes. Address them early.
What if a beneficiary accuses me of mismanaging the estate?
Your records protect you. Photos, receipts, correspondence, decisions documented. If you've acted honestly and kept clear records, you have a defence. If you can't produce records, it's harder.
Do I need professional indemnity insurance?
Not legally required, but a good idea if the estate is large or complex. Some solicitors carry it as part of their service. Ask your solicitor about it.
Can I be personally liable for estate debts?
Only if you distribute assets before paying debts. If you pay debts first and then distribute what's left, you're protected. The beneficiaries inherit the estate minus debts, not the other way around.
Next: The Executor's Checklist
A practical, step-by-step checklist to work through. Print it. Cross things off as you go.
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