How to Prepare Estate Accounts for Beneficiaries

Have a question about this? Ask the Guide → the chat widget at the bottom-right of this page can answer it. Reading time: 6 minutes | The Executor’s Guide — Plain English. Step by step. Written for the person who just found out.

---

Before you distribute the estate, you need to prepare estate accounts — a formal summary of every asset collected, every payment made, and what remains for distribution. This is one of your core obligations as executor, and the document that protects you if a beneficiary later questions what happened to the estate.

What Are Estate Accounts?

Estate accounts show: what the estate had at date of death; what came in during administration; what went out (debts paid, taxes, expenses); and what remains for distribution. Think of it as the estate’s financial report — every dollar in, every dollar out.

When Must You Provide Them?

Every beneficiary entitled to a share of the estate has a legal right to see the accounts before distribution. Provide them proactively — before you are asked. If you fail to provide them and a beneficiary challenges the distribution later, you are in a much weaker position. Also provide them at any interim point if requested, and to the court if there is a dispute.

What to Include

Section 1 — Capital Account (Assets)

List every asset at date-of-death value: real property (with valuation evidence), bank accounts, shares and investments (market value at death), vehicles, life insurance paid to estate, personal property of significant value. Then list all capital receipts during administration: proceeds from property sales, share sales, and other capital receipts.

Section 2 — Income Account

If the estate earned income during administration, list it separately: bank interest, rental income, dividends received.

Section 3 — Payments Made

List every payment from the estate with dates: funeral expenses, probate costs and legal fees, mortgage payouts, debts paid to each creditor, tax payments, maintenance costs during administration, executor’s commission if any, accountant and valuer fees.

Section 4 — Distribution Summary

Gross Estate + Income Received − Payments Made = Net Estate Available for Distribution. Then list each beneficiary, each specific gift already distributed, each beneficiary’s share of the residual, and the exact amount or asset each person receives.

Executor’s Commission

Executors are entitled to claim commission — a fee for administering the estate. It is not automatic. It must be agreed by all beneficiaries or approved by the Supreme Court. Typical range: 1–3% of estate value depending on complexity. If you intend to claim commission, tell beneficiaries before they see the accounts — not at distribution time.

Getting Beneficiary Sign-Off

Send the estate accounts to each beneficiary with a cover letter explaining each section and an invitation to raise questions within 2–3 weeks. Include a simple sign-off form. Once all beneficiaries have approved — or the period for objections has passed — proceed with distribution. Keep signed copies permanently. They are your primary protection if a dispute arises later.

After Distribution — Final Steps

• Close the estate bank account
• Notify the ATO the estate has been fully administered (to close the estate TFN)
• Retain all estate records for at least 7 years
• Retain the will and probate grant permanently — do not destroy these

---

The Executor’s Guide provides general information about estate administration in Australia. It is not legal advice. For complex estates or where beneficiaries are in dispute, seek legal advice before finalising and distributing accounts.

---

Related guides

• What to Do When Someone Dies in Australia
• What Is an Executor?
• Executor Duties in Australia: The Complete Legal Guide
• Do I Need Probate? A Plain-English Guide