Transferring assets from the estate

How do you set up an estate bank account?

Before transferring any assets, open a dedicated estate bank account in the name of "The Estate of [full name of deceased]." This account receives all estate funds: proceeds from closed accounts, asset sales, and any income earned by the estate after the date of death.

All estate expenses are paid from this account, including legal and accounting fees, ongoing property costs, and any debts of the estate. All distributions to beneficiaries are made from it. This keeps estate funds separate from your personal finances and creates a clean record of the entire administration.

Most major banks offer estate accounts. You will generally need the death certificate, your identification as executor, and usually the grant of probate to open the account. Ask the bank what they specifically require before visiting, as requirements vary.

How are bank accounts and cash handled?

Contact each bank where the deceased held an account and notify them of the death. Provide the death certificate. They will advise what they need to release funds, which generally depends on the account balance. Small balances may be released without probate. Larger balances typically require the grant of probate, though thresholds differ between institutions.

Sole accounts will be closed and funds transferred to the estate account. From there, the executor distributes to beneficiaries according to the will once all liabilities have been settled. Do not distribute before debts are paid.

Joint accounts generally pass automatically to the surviving account holder by operation of law and do not form part of the estate. Notify the bank and provide the death certificate to update the account to sole ownership. The surviving account holder can usually continue using the account in the interim.

How does superannuation get paid out?

Superannuation does not automatically form part of the estate. It is held in trust by the fund and passes according to the fund's own rules: either via a valid binding death benefit nomination or at the trustee's discretion. Contact the super fund directly as early as possible and follow their process for lodging a death benefit claim.

The tax treatment of superannuation death benefits depends on who receives them and the tax components of the fund balance. The ATO publishes detailed guidance on this at ato.gov.au, under the deceased estates section, which is worth reading before the benefit is paid out. A tax adviser can also explain the implications, particularly if there is a choice between paying the benefit to the estate versus directly to a dependant.

If the super fund requires information from the estate or if the estate is named as beneficiary, your estate solicitor and the fund's claims administrator will need to liaise directly. Allow extra time for this process: superannuation claims can take weeks to months depending on the fund and the complexity of the nomination.

How are shares and managed investments transferred?

To transfer listed shares, contact the relevant share registry (Computershare, Link Market Services, or others depending on the company) and request their transmission or transfer form. Provide the grant of probate and death certificate. Each registry has its own form and process. If shares are held across multiple companies you may be dealing with several registries simultaneously.

The executor can choose to transfer shares directly to a beneficiary or sell the shares and distribute proceeds through the estate account. Get tax advice before deciding: the capital gains tax implications differ depending on which option you choose and when the transfer or sale occurs.

For managed funds and other investment accounts, contact the fund manager or platform directly. They will have their own redemption or transfer process. Provide the same documentation: death certificate and grant of probate.

How do you transfer a vehicle from the estate?

Vehicle transfers are handled through the relevant state or territory transport authority. You will need the death certificate, evidence of ownership (vehicle registration papers), and in most states a completed transfer form. There is generally a transfer fee.

Some states allow a simplified process for vehicle transfers to a surviving spouse or immediate family member without requiring probate. Check with the transport authority in your state for the current requirements before proceeding.

If the vehicle is to be sold as part of the estate rather than transferred to a beneficiary, make sure it is insured until the sale is complete. Notify the insurer of the death so the policy is properly maintained in the interim.

How is personal property distributed?

Personal property such as furniture, jewellery, artworks, and collectibles passes to beneficiaries according to the will, or by family agreement where the will does not specify particular items. For items of significant value, obtain a professional valuation for estate accounting purposes before distribution.

Keep a written record of what has been distributed to whom, and ask beneficiaries to sign a receipt for anything of meaningful value. This protects the executor against future disputes about what was received and when.

Where the will leaves the residue of the estate to multiple beneficiaries and personal property was not specifically bequeathed, that property forms part of the residue. If beneficiaries cannot agree on the allocation of specific items, the executor has the authority to sell them and distribute the proceeds.

What happens to digital assets and online accounts?

Digital assets are an increasingly important part of estates and can include online investment accounts, cryptocurrency holdings, digital businesses, intellectual property, and online subscriptions. Gaining access to digital accounts after a death can be difficult. Some platforms such as Google and Apple have specific legacy or next-of-kin access processes. Cryptocurrency is particularly complex if the deceased did not leave clear instructions or access credentials.

If there is reason to believe significant digital assets exist, engage a solicitor with experience in digital estate matters early. For ongoing subscriptions and services, locate them through bank or credit card statements and cancel them to avoid ongoing charges to the estate.

If the deceased used a password manager, this can be invaluable for identifying and accessing digital accounts. Note that accessing another person's online accounts without authorisation may raise legal issues in some circumstances. Your solicitor can advise on how to proceed appropriately.

What records should you keep of every transfer?

For every asset transfer, keep copies of the transfer documents submitted, the institution's confirmation of completion, the value of the asset at the date of death (for capital gains tax cost base purposes), and who ultimately received it.

Prepare a summary estate account listing all assets received, all expenses paid, and the final distribution to each beneficiary. This is provided to beneficiaries and forms the basis of any tax returns lodged on behalf of the estate.

Keep all estate records for at least seven years. The ATO has the right to audit estate tax returns within this period, and beneficiaries may raise questions long after the estate is formally wound up.