Disclaimer — This article is for general educational purposes only and is not legal advice. Executor liability depends on the…
Disclaimer – This article is for general educational purposes only. It is not legal advice. Executors, administrators and beneficiaries of Queensland estates should obtain personalised guidance from a solicitor experienced in succession-law administration.
Once the Supreme Court of Queensland issues probate or letters of administration, the executor becomes the estate’s legal representative. Alongside collecting assets and paying debts, an executor must keep accurate records and give beneficiaries clear, timely information. This obligation—known as the duty to account—is rooted in fiduciary law and reinforced by court practice directions. Failure to comply can lead to court-ordered account audits, removal of the executor, personal liability for losses, and adverse costs orders.
Why Transparency Matters
- Beneficiaries cannot protect their interests without information.
- Courts rely on executor accounts to approve interim or final distributions.
- Insurance policies, tax filings and asset valuations depend on consistent record-keeping.
- Lack of transparency is a primary trigger for contested-estate litigation.
Core Accounting Obligations under Queensland Law
| Obligation | Statutory / Common-Law Source | Practical Deliverables |
|---|---|---|
| Keep full and accurate accounts | Fiduciary duty; Succession Act 1981 (Qld) ss 52–54 (powers imply record-keeping) | Asset & liability register, receipts, bank statements, share transactions, loan pay-outs |
| Provide “timely and sufficient information” on request | Re Dawson [1966] 2 NSWR 211 (trustee standard), UCPR r 647 | Written updates on asset realisations, debts, litigation, expected distribution dates |
| Separate estate funds from personal money | Trust-law duty to segregate | Estate-only bank account, independent term deposits, no mixed payments |
| Prepare estate tax returns | Income Tax Assessment Act 1936/1997 (Cth) | TFN application, annual returns, PAYG instalments if required |
| File accounts for passing if court-ordered | UCPR r 648; Practice Direction 3/2023 (Wills & Estates List) | Form 46 sworn accounts, vouchers indexed and paginated, affidavit verifying accuracy |
Recommended Reporting Timeline
| Estate Phase | Typical Timing | Information to Send Beneficiaries |
|---|---|---|
| Grant obtained | Within 30 days | Copy of the grant; summary of major assets & debts; outline of next steps |
| Asset realisation stage | Every 3–6 months | Progress letter: assets sold, funds received, debts paid, forecast of costs |
| Pre-distribution | At least 30 days before proposed distribution | Draft statement of account showing: – initial inventory – receipts & payments – proposed shares of residue |
| Final distribution | With final payments | Final statement; tax clearance note; receipts for legacies |
Best-Practice Record-Keeping Tips
- Open a dedicated estate account as soon as possible—never use a personal account.
- Number every receipt and file electronically in date order; attach brief notes for unusual transactions.
- Keep an asset “movement register” (e.g., spreadsheet) logging sale contracts, settlement adjustments, brokerage, and capital-gains calculations.
- Retain source documents—valuations, invoices, insurance schedules—for at least five years after the estate is finalised; the ATO can audit.
- Use cloud storage with encrypted backup so beneficiaries can view read-only reports on request.
What Beneficiaries May Inspect
Beneficiaries are entitled to see more than just the will:
- Full estate accounts and vouchers (receipts, invoices, bank statements).
- Legal bills paid out of the estate.
- Share or property sale contracts and settlement statements.
- Litigation documents if estate funds are financing proceedings.
Executors may redact privileged legal advice obtained in anticipation of litigation against a beneficiary, but routine administration advice is generally disclosable.
Remedies for Non-Compliant Executors
If an executor ignores reasonable information requests, beneficiaries can:
- Request voluntary accounting—formal letter asking for accounts within 14 days.
- Apply for a court order under UCPR rr 645–648 compelling the executor to file and pass accounts.
- Seek removal of the executor for breach of duty (e.g., Re Cavill; Read v Waite [2020] QSC 31).
- Claim interest or compensation for delayed distributions or proven losses.
Courts expect beneficiaries to attempt informal resolution first; cost orders often penalise unnecessary litigation.
Frequently Asked Questions
Does every estate need to “pass accounts” before the court?
No. Formal passing is only required if the will demands it, a beneficiary or creditor applies, or the court sees grounds for concern.
Can an executor charge for their time keeping accounts?
Professional executors (lawyers, accountants, trust companies) usually charge hourly fees if authorised by the will or approved by the court. Lay executors may claim a commission (up to ~5 %) but must first obtain beneficiary consent or a court order.
Must I show beneficiaries every solicitor invoice?
If the estate pays the bill, beneficiaries are entitled to inspect the invoice and disbursement details. Narratives may be redacted if they reveal privileged advice about potential beneficiary claims.
What if a beneficiary refuses to sign the account approval?
Executors may apply to the court to have the accounts passed; the court will review objections and, if satisfied, approve the statement.
Key Takeaways
- Executors in Queensland owe a strict duty to account—accurate records, segregation of funds, and responsive reporting.
- Beneficiaries can inspect estate accounts, vouchers and legal expenses and may compel formal passing if transparency is lacking.
- Timely, proactive updates (especially before distribution) are the executor’s best defence against allegations of secrecy or delay.
- Courts will remove or penalise executors who persistently ignore reasonable information requests or intermingle estate funds.
Sources / Citations
- Succession Act 1981 (Qld) ss 51–54 — powers and duties of personal representatives.
- Uniform Civil Procedure Rules 1999 (Qld) rr 645–649 — filing and passing estate accounts.
- Re Cavill; Read v Waite [2020] QSC 31 — removal for failure to account.
- Queensland Supreme Court, Practice Direction 3/2023 (Wills & Estates List) — account-passing expectations.
- Re Dawson [1966] 2 NSWR 211 — trustee standard of care in accounting.