Being named as an executor in someone’s will is an honour—but it’s also a significant legal and financial obligation. As Australia’s population ages and estate values rise, executors are facing more complex responsibilities than ever before. In 2025, updates to probate laws and digital estate management mean it’s crucial to understand exactly what’s involved. Here’s a clear, up-to-date guide for anyone acting as (or considering appointing) an executor in Australia this year.
What Is an Executor?
An executor is the person or institution chosen in a will to manage the deceased’s estate. Their core duty: carry out the wishes set out in the will, handle debts, and distribute assets to beneficiaries. Executors are legally and financially accountable for getting it right.
In 2025, it’s common for Australians to appoint more than one executor (sometimes a trusted friend plus a professional, such as a solicitor or trustee company) to ensure expertise and impartiality. Digital assets, superannuation balances, and cross-state property ownership are all adding layers to the job.
Executor Duties: Step-by-Step
- Locating the Will: The first task is to find the most recent valid will. This document is essential for guiding every step of the estate administration process.
- Applying for Probate: Probate is the legal process that confirms the will is valid and gives the executor authority to act. As of 2025, several states have streamlined online probate applications, but requirements and fees vary—NSW, for example, now mandates digital submissions for most estates.
- Identifying Assets and Debts: Executors must compile a full inventory—bank accounts, property, shares, vehicles, superannuation, digital assets (such as cryptocurrency and cloud storage), and outstanding debts.
- Paying Debts and Taxes: Before distributing inheritances, all debts, funeral expenses, and tax obligations must be settled. The ATO has increased scrutiny on deceased estates in 2025, particularly regarding capital gains tax on property sales.
- Distributing Assets: Only after debts and taxes are paid can the executor distribute remaining assets to beneficiaries according to the will. This might involve selling property, transferring shares, or facilitating payouts from super funds.
- Keeping Records: Executors are required to keep thorough records of all transactions, correspondence, and decisions. This protects against disputes and is essential if the estate is challenged.
2025 Updates: What’s New for Executors?
This year brings several noteworthy changes:
- Digital Probate and E-Filing: Most major states now require or strongly encourage online probate applications. This can speed up the process, but digital literacy is increasingly important.
- Increased ATO Oversight: The ATO’s 2025 compliance focus includes cross-checking property transfers and capital gains on inherited assets, so executors must be meticulous with tax reporting.
- Superannuation Changes: New superannuation rules impact death benefit payments and may require executors to liaise directly with super funds, particularly when beneficiaries are not dependents.
- Managing Digital Assets: With more Australians holding cryptocurrency, online businesses, or significant digital libraries, executors need to understand how to identify and transfer these assets. Some states have introduced specific guidelines for handling digital property.
Common Challenges and Tips for Executors
- Family Disputes: Executors often find themselves caught between warring beneficiaries. Keeping clear, transparent records and communicating regularly can help prevent misunderstandings.
- Complex Estates: Multiple properties, business interests, or international assets can slow down administration. Professional advice may be needed for estates with complex structures.
- Personal Liability: Executors are personally liable for mistakes, such as distributing assets before all debts are paid. Take time to understand your duties, and don’t rush key decisions.
- Executor’s Commission: If the will doesn’t specify payment, executors can apply to the court for commission (usually a percentage of the estate), but this must be reasonable and justifiable.
Example: When Sydney resident Helen was appointed executor for her late aunt’s estate in 2024, she discovered several cryptocurrency wallets and an Airbnb property in Queensland. Navigating the new e-probate system, she sought guidance from a digital asset specialist to locate and transfer the crypto, while also working with a tax adviser to ensure compliance with the latest ATO rules.
Should You Accept the Role?
Being an executor can take months—or even years for large or disputed estates. If you’re asked to take on the job, consider:
- Your relationship with the beneficiaries
- The complexity of the estate
- Your capacity to handle paperwork, legal processes, and potential conflict
- Whether professional support is needed (and whether the estate can pay for it)
It’s possible to renounce the role before starting, so think carefully before accepting.
Conclusion: The Importance of Getting Executor Duties Right
Executors play a pivotal role in protecting assets, honouring legacies, and supporting families through difficult times. With 2025’s legal updates, digital innovations, and increased regulatory scrutiny, the job demands diligence and care. Whether you’re writing your own will or preparing to act as executor, understanding your responsibilities is more vital than ever.
