Potential Liabilities for Executors of a Will in NSW

11^th November, 2025

Being appointed as an executor is a serious responsibility and, moreover, can involve personal risk. If you have been named as the executor of a Will in New South Wales (NSW), you should understand the legal duties and potential liabilities that come with the role.

What does an executor do?

An executor steps in once the person named in the Will has passed away. You will need to apply for a Grant of Probate from the Supreme Court of NSW before you can fully act. Next, you must identify and secure the deceased’s assets, pay their debts (including tax liabilities), and distribute the remaining estate in accordance with the Will and relevant law.

Governing laws and bodies

Executor duties in NSW are mainly governed by several key pieces of legislation, including the Succession Act 2006 (NSW), the Probate and Administration Act 1898 (NSW), and the Trustee Act 1925 (NSW). The Supreme Court of NSW oversees probate matters and estate disputes, while the Australian Taxation Office (ATO) regulates tax compliance for deceased estates.

Key areas of potential liability

Failure to collect or properly manage estate assets

You must act with care and diligence when handling estate assets. If you fail to protect property, delay collecting funds, or sell assets at a loss without justification, you could be personally liable.

Distributing the estate before debts and tax are paid

Before distributing any assets, you must ensure all debts and tax liabilities are finalised. If you distribute too early and a creditor or the ATO later makes a claim, you may have to repay the shortfall yourself.

Premature distribution or failing to wait for claims

Under the Succession Act 2006 (NSW), certain family members may make a claim on the estate within 12 months of death. Distributing assets too soon can expose you to personal liability if a valid claim later arises.

Administering the estate without proper accounting or transparency

Executors must maintain accurate records and keep beneficiaries informed. If you fail to provide information or cannot properly account for funds, you may breach your fiduciary duties.

Acting unfairly or in conflict of interest

Executors must act impartially and avoid favouring one beneficiary over another unless the will allows it. Acting in self-interest or showing bias can lead to disputes or personal liability.

Minimising your risk

To reduce your risk:

• Seek legal and financial advice early.
• Keep detailed records of all transactions and communications.
• Wait for statutory notices before distributing assets.
• Provide regular updates to beneficiaries.
• If unsure, seek directions from the court before acting.

For more related information, read our previous blogs, “Who Can Be the Executor of a Will?” and “Should You Appoint a Solicitor as Executor of Your Will?”.

How we can help

If you’ve been appointed as an executor and need clear legal advice, contact our friendly team today at Castrikum Adams Legal for professional guidance and peace of mind. We proudly assist clients with estate administration and matters relating to the liability of executors in Byron Bay, Ballina, Lennox Head, Lismore, Murwillumbah,Bangalow, Ocean Shores, and across the Northern Rivers region.