HOW LONG DOES IT TAKE TO ADMINISTER AN ESTATE – AND WHEN WILL BENEFICIARIES BE PAID?
Estate Administration rarely follows a single, predictable timeline. A straightforward Estate with simple assets and no disputes may be finalised in six to twelve months; a complex Estate involving real property, business interests, disputed debts or family provision claims (also known as a Part IV Claim) can take several years. Understanding the legal framework, and in particular the concept of the “Executor’s year”, helps both Executors and beneficiaries know what to expect.
WHAT IS THE EXECUTORS YEAR?
The “Executor’s year” is the general principle recognised under Victorian law, that a personal representative (whether an Executor under a Will or an Administrator in an intestacy) should try to complete the administration of the Estate (calling in assets, paying debts, and distributing to beneficiaries) within 12 months of the date of death of your loved one.
Critically, however, the Executor’s year is a rule of convenience, not a rule of law. Section 49 of the Administration and Probate Act 1958 (Vic) confirms that a personal representative is not obliged to distribute the Estate before the expiration of one year from the date of death. This means beneficiaries cannot compel an Executor to distribute sooner, provided the delay is not undue or unjustified.
WHAT HAPPENS IF AN EXECUTOR IS TAKES TOO LONG?
While the Executor’s year sets a target, unjustified delay can expose a personal representative to risk:
- Interest on pecuniary legacies – under section 39B(3) of the Administration and Probate Act 1958 (Vic), a beneficiary entitled to a pecuniary legacy (a specific cash gift) has the right to claim interest on any unpaid amount once the Executor’s year has elapsed. That interest rate is set at 2% above the RBA cash rate as at 1 January of the relevant year;
- Personal liability – a personal representative who, without justification, fails to administer the Estate within the Executor’s year may be personally liable for any loss suffered by beneficiaries as a result of the delay. Delay is only one of the several risks an Executor faces;
- Removal application – if the 12-month period has passed and the estate remains undistributed, beneficiaries may apply to the Supreme Court to have the Executor removed;
- Impact on commission – unjustified delay may also affect the personal representative’s entitlement to claim Executor’s commission, which in Victoria is assessed by the Supreme Court under the Administration and Probate Act 1958 and typically ranges from 1–3% of the net estate.
Distributing Too Early – the six month rule
Separate from the Executor’s year, there is an important practical rule regarding when distribution can safely occur.
Under section 99 of the Administration and Probate Act 1958 (Vic), eligible persons have six months from the date probate is granted (not from the date of death) to make a family provision claim. For this reason, Executors are strongly advised not to distribute the Estate until at least six months after the Grant of Probate or Letter of Administration has been issued. If an Executor distributes too early and a successful family provision claim is later made, the Executor may be held personally liable for any shortfall.
how long does each stage take?
The administration process generally moves through these stages:
| Stage | Typical Timeframe | What Happens |
| Immediate Steps | Weeks 1-4 | Funeral arrangements, obtaining the death certificate, locating the original Will, notifying institutions, and beginning the asset and liability inventory |
| Probate Application | Months 1-3 | Advertising notice of intention to apply, preparing affidavits, and lodging the application with the Probate Office |
| Grant Issued | 4-8 weeks after filing | Probate or Letters of Administration granted if uncontested |
| Administration | Months 3-9 post-grant | Collecting assets, selling property if required, paying debts, filing tax returns, and obtaining ATO clearance |
| Distribution | From 6 months post-grant | Distributing to beneficiaries once the window for a family provision claim has closed and all liabilities are resolved |
Whilst this timeline ideal, delays in the application for a Grant of Probate/Letters of Administration and the administration of an Estate itself are common as you may encounter a contested estate, complex tax issues, property sales in a slow market, overseas assets and unresolved family provision claims.
HOW CAn kpa help?
In our Wills, Trusts and Estates team at KPA Lawyers, we endeavour to ensure that Executors and beneficiaries are informed at each stage of the process, to ensure that we can provide you with the best service possible during a difficult time.
Get in touch with one of our team to discuss your situation and how one of our experienced lawyers can assist you.
