26th June, 2026
When a person dies in New South Wales (NSW), their assets form their estate and are managed by an executor. The executor must distribute the estate according to the Will or, if there is no Will, the rules of intestacy. However, this process is not always as simple as selling everything and dividing the proceeds.
In many estates, executors can distribute assets “in specie”. This means transferring specific assets directly to beneficiaries instead of converting everything into cash. This may be supported by powers in the Will or under the Trustee Act 1925 (NSW).
What Is Appropriation?
Appropriation refers to an executor’s ability to allocate estate assets towards a beneficiary’s entitlement under the Will. For example, one beneficiary may receive the family home, while another receives cash, shares, or other assets of equal value.
This allows an estate to be distributed without requiring all assets to be sold. Beneficiaries may therefore receive actual property or items rather than a cash payout.
Importantly, fairness is assessed by market value rather than sentimental attachment.
How Does Asset Distribution and Balancing Work?
Executors often balance entitlements by allocating different types of assets between beneficiaries. This is sometimes referred to as asset adjustment.
For example, one beneficiary may receive real estate, while another receives investments and cash. Jewellery, vehicles, or personal items may also be used to balance entitlements under the Will.
Where values differ, cash adjustments may be applied to equalise shares. This helps ensure each beneficiary receives their intended entitlement.
Valuing Estate Assets in NSW
Accurate valuation is essential in estate administration. Executors may obtain independent valuations for property, shares, or high-value items to ensure fairness.
Disputes can arise where beneficiaries disagree on value. Clear records of valuations and decisions made under the Will help reduce conflict.
Why Executors Use These Powers
Executors may use these powers to avoid unnecessary sales of estate assets. Selling property or investments can create delays, costs, and exposure to unfavourable market conditions.
In addition, families may prefer to retain certain assets within the estate, particularly the family home or sentimental items.
However, executors must always act impartially and in accordance with their duties under the Will and NSW law.
Risks And Disputes
Although this approach can make administration more efficient, disputes may still arise. Beneficiaries may disagree on valuations or the perceived fairness of distribution.
Careful drafting of the Will and early legal advice can reduce these risks significantly.
How We Can Help
In New South Wales, appropriation and in specie distribution provide executors with flexibility when administering an estate under a Will. These mechanisms allow assets to be distributed fairly without requiring everything to be sold.
Castrikum Adams Legal assists clients with Will preparation, estate planning, and estate administration across Byron Bay, Bangalow, Ballina, Murwillumbah, Mullumbimby, Tweed Heads, Alstonville, and Lismore. We provide practical guidance to executors and families to help ensure estates are managed efficiently and in accordance with legal requirements.
If you need assistance understanding your rights as an executor or beneficiary, our team can provide clear and tailored advice.
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The content of this Blog does not constitute legal advice, is not intended to be a substitute for legal advice and should not be relied upon as such. You should seek legal advice or other professional advice in relation to any specific matters you or your organisation may have.