Settling an estate is more than a legal procedure – it’s a vital process carrying deep emotional and financial significance for beneficiaries. Understanding the timeline and duties involved in this process is crucial, especially for beneficiaries who may depend on the estate for their financial security. This article aims to demystify the timeline and responsibilities of an executor in New Zealand and offer guidance to beneficiaries on dealing with delays and executor misconduct.
Understanding the timeline for probate applications in New Zealand
The executor’s first duty after the death of the will-maker is to locate the will and apply for probate. If there is no will, an application is instead made by a family member for letters of administration. In either case, the application should ideally be made within three months of the will-maker’s passing. (There is an exception in the case of small estates, where probate or letters of administration are unnecessary. Read more about small estates and the exceptions that apply here.)
If an executor fails to apply for probate within the three-month period, beneficiaries, co-executors, or creditors can invoke sections 19 and 53 of the Administration Act 1969. These provisions allow them to request the appointment of a new executor or compel the current executor to proceed with the probate application.
Furthermore, the Public Trust, under section 80 of the Public Trust Act 2001, holds the authority to apply for executorship if there’s more than three months’ delay. However, the Public Trust is often hesitant to intervene unless it was specifically named in the will or had prior involvement in the estate planning process.
The probate process: duration and expectations
Once the application for probate has been made, there is then a further waiting period while it is processed. The New Zealand Probate Registry targets a 15-working-day turnaround for probate applications. On average, however, the process can take about four to eight weeks, and as of 2024, there’s an expected delay, extending the processing time to approximately 12 weeks.
Executor’s responsibilities post-probate
After probate is granted, executors are required to hold the estate’s assets for at least six months. This period allows for any potential claims against the estate to emerge. Following this, executors are expected to execute the will and distribute the assets.
Generally, executors should complete the estate’s administration and distribute its assets within 12 months of receiving probate, often referred to as the “executor’s year”. However, complex or large estates, unresolved claims, or specific will conditions may extend this timeline. In such cases, executors must balance timely administration with the need to adhere to the will’s stipulations and resolve any claims.
Dealing with delays and executor misconduct
In instances where an executor fails to efficiently administer and distribute the estate, beneficiaries have legal avenues to address this. Executors who cause loss due to their inaction or mismanagement may face personal liability. The comprehensive guide to executor misconduct claims offers detailed insights into the duties of executors, scenarios leading to their removal, and the legal implications thereof. Additionally, the guide on removing an executor provides practical steps and legal considerations for those seeking to replace an executor.
Seek expert legal advice
Facing challenges with an executor can be overwhelming. We recommend consulting with inheritance law specialists to address any concerns effectively. Delays in taking action against a problematic executor could result in further estate damage. Timely legal intervention is crucial, particularly as strict time limits apply for lodging claims against executors.
Conclusion
The role of an executor in settling an estate in New Zealand is bound by specific time frames and responsibilities. Understanding these timelines and your rights as a beneficiary is crucial. If you suspect executor misconduct or face undue delays in estate administration, it’s vital to seek expert legal advice promptly. In matters of inheritance disputes, experienced legal guidance can make a significant difference in protecting your interests.
