How to manage finances, accounts and assets after someone dies
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Sorting out someone's money after they die can feel strange, even unkind, while you're grieving. But it's also one of the ways people look after their family one last time. You don't need to do it all at once, and you don't need to do it alone.
Where do I start?
Start with a list, not decisions. Write down what you know about:
- Bank accounts and credit cards
- Superannuation funds
- Life insurance policies
- Property, such as a home, car or land
- Shares and other investments
- Online accounts that hold money (PayPal, digital wallets)
- Debts, such as a mortgage, loans and unpaid bills
Keep the list in one safe place. A notebook works. So does a secure digital vault like Gaia Vault. Explore Gaia Vault
Who is in charge of the money?
The executor named in the Will looks after the estate. Their job is to collect what the person owned, pay what they owed, and pass on the rest as the Will says.
If there's no Will, a close relative can apply to the Supreme Court in their state to become the administrator. The administrator does the same job, following the state's rules.
The executor doesn't pay debts out of their own pocket. Debts are paid from the estate.
When should I contact the bank?
It's best to wait until you have the death certificate. When you call, the bank will usually:
- Freeze accounts that were only in the person's name
- Let the surviving owner keep using joint accounts
- Explain how to close accounts and release the money
Many banks can pay a funeral bill straight from the person's account, even before the estate is sorted. Ask about this.
What happens to super and life insurance?
Super is often one of the biggest amounts a person leaves. It also often includes life insurance.
- Super doesn't automatically follow the Will. The fund looks at who the person nominated.
- A binding nomination usually tells the fund exactly who to pay.
- If there's no valid nomination, the fund's trustee decides, usually paying dependants or the estate.
- Contact each fund early. Claims can take several months.
Life insurance held outside super is usually paid to the person named on the policy.
Do we need probate?
Probate is a court document that confirms the Will is valid and the executor can act. You're likely to need it if the person owned:
- A home or land in their name only
- Larger amounts in the bank (each bank sets its own limit)
- Shares
You might not need it if the estate is small, or if most things were owned jointly. A solicitor can help you check.
Will I have to pay their debts?
Usually not. Debts are paid from the estate. If there isn't enough money in the estate, many debts can't be passed on to family. The exception is debt you share, like a joint loan or a loan you guaranteed. Those stay with you.
Common questions
Check the person's papers, their solicitor, their bank, and your state's Will register if it has one. If there's no Will, the estate is handled under the state's rules.
A simple estate might take several months. Estates with property, many accounts or disagreements can take a year or more.
Often, yes. Ask the bank to pay the funeral director's invoice directly.
Written by Daniel Xuereb. Last reviewed .
This article is general information for people in Australia. It isn't legal or financial advice. Rules differ between states, so check with a solicitor or financial adviser about your situation.
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