Being appointed as an executor in Australia isn’t just an honour—it’s a major responsibility. As we move through 2025, recent legal tweaks and a shifting financial landscape have made the executor’s job more complex than ever. Whether you’re named in a will or considering who should manage your own estate, understanding what’s involved is essential to avoid costly mistakes and delays.
What Is an Executor and Why Does It Matter?
An executor is the person (or sometimes a trustee company or law firm) nominated in a will to carry out the deceased’s wishes. Their primary job: manage the estate, pay off debts, distribute assets to beneficiaries, and deal with tax and legal paperwork. In 2025, with the rise of digital assets and more Australians holding property overseas, executors face new challenges beyond the traditional paperwork.
- Asset management: Identifying and protecting assets, including online accounts and cryptocurrencies.
- Legal compliance: Applying for probate, following state-specific succession laws, and dealing with any challenges to the will.
- Communication: Keeping beneficiaries informed—now often via digital channels—and managing expectations.
It’s a role that requires both diligence and diplomacy, especially when family dynamics are complex or the estate includes business interests or disputed assets.
Key Executor Responsibilities in 2025
Recent legal updates and financial reforms have added fresh layers to the executor’s job. Here’s what’s front and centre this year:
- Probate Applications Are More Digital Than Ever
Most Australian states now offer streamlined online probate processes. For example, in NSW and Victoria, probate applications moved almost entirely online in 2024, making it easier—but also more technical—to manage the process. Executors must ensure all documents are correctly uploaded and certified. - Tax Changes to Watch
ATO rules around the deceased estate tax-free threshold and capital gains tax (CGT) on inherited property changed in July 2024. Executors now have stricter reporting requirements and tighter deadlines for lodging estate tax returns and realising CGT exemptions. Failing to meet these deadlines can trigger penalties. - Managing Digital and Overseas Assets
The average Australian estate is no longer just property and superannuation. Executors may need to access digital wallets, online bank accounts, and shares held on overseas exchanges. Laws around digital access differ by platform and jurisdiction, so preparing for these hurdles early is essential.
Common Pitfalls and How to Avoid Them
Even the most organised executors can stumble. Here are some traps to dodge in 2025:
- Overlooking Debts and Liabilities: Credit card debt, personal loans, and even Buy Now, Pay Later balances must be paid before distributing assets. New reporting by credit agencies makes it easier for creditors to lodge claims.
- Family Disputes: Contesting wills is on the rise in Australia. If you’re the executor, document every step—communications, valuations, and asset transfers—to protect yourself against legal challenges.
- Ignoring Superannuation Rules: Super doesn’t automatically form part of the estate. The 2025 APRA guidelines reinforce that executors must check beneficiary nominations and follow fund-specific procedures, or risk delays and disputes.
- Failing to Seek Professional Help: Even simple estates can become complicated with blended families or business assets. In 2025, more executors are engaging estate lawyers or accountants for specific tasks, such as lodging final tax returns or managing property sales.
Executor Best Practices for a Smoother Process
While every estate is different, these practical tips can help executors stay on track:
- Start by securing the deceased’s home, valuables, and important documents—digital and physical.
- Notify banks, insurers, super funds, and relevant government agencies quickly. Most now have online notification portals.
- Keep detailed records of all transactions, communications, and decisions.
- Communicate early and often with beneficiaries to manage expectations and reduce the risk of disputes.
- Stay across state-specific succession laws and any updates from the ATO or state revenue offices.
Above all, don’t underestimate the time commitment. The average estate now takes 9–18 months to finalise, especially where real estate or business interests are involved.
Conclusion
Serving as an executor in Australia has always been a big job, but in 2025, it’s more complex—and more important—than ever to get it right. With tighter regulations, digital assets, and higher stakes, careful planning and up-to-date knowledge are essential. If you’re an executor or planning your own estate, now’s the time to get familiar with the latest rules and best practices.
