A guide to dealing with deceased estates

Dealing with the death of a loved one is one of the most difficult things any of us will ever do – and saying goodbye to their former home can be one of the most complex and painful parts of the process. Here’s how to handle this part.

Tick the legal boxes

Before you even think about property, you must ensure that the estate’s legalities are in order.

If the recently departed has named an executor in a last will and testament, this is relatively straightforward. If not, a family member will need to apply for a probate in court – a potentially lengthy process.

Decide on the property’s future

The treatment of the deceased’s property depends on its ownership. If the property was rented, it will need to be cleared and restored to its original condition – often in an extremely short timeframe.

“When you consider that some of the tenants may have been in houses for 35 to 40 years, properties may need to have big repair and restoration jobs,” says Warren O’Brien, founder of Deceased Estate Management Services Australia (DEMSA).

If the recently departed owned their home, then you need to decide whether you’ll sell the property, rent it out or reside in it. It may be worth renting the property out while you decide what to do, says O’Brien.

“Depending on when probate is obtained, you have 24 months to decide what to do with the property before ‘death taxes’ kick in,” says O’Brien. “When my father died, I decided to put his house on the rental market, then sold it just before the two-year mark. The rental income alone was enough to pay off the estate’s debts.”

Remove any possessions

No matter what, the deceased’s possessions will need to be removed from the property. This can be the most difficult part of the process.

“A lot of people find it’s too much emotionally,” says O’Brien. “There are often too many memories and they can’t do it.”

This is where firms like DEMSA come in. First, O’Brien asks clients to remove any items that are left to people in the will. Next, his staff complete a full inventory of possessions and consult with the executor about what should be done with them. Options include selling items piecemeal, in boxes via the public trustee at auction, donating them to charity or disposing of them at the local refuse centre.

Presentation for sale or rent

If you’re selling or renting the property, you may also need to make it presentable to potential buyers and/or tenants. O’Brien recommends consulting a local real estate agent or property manager – but warns against going with the first agent you speak to.

“It’s important to find an agent who understands the area and who will work with your timeframes rather than theirs.”

Deceased estate management services

If that seems like a lot of work to take on at a taxing time, you’d be right in thinking so. That’s why firms like DEMSA are increasingly hired to take the pressure off mourning families, especially those who live interstate.

Be warned, however: there is a number of rogue operators out there looking to take advantage of other people’s misfortune.

To avoid being a victim, carry out background checks before you hire anyone and ask around for recommendations. Follow your instincts – if you don’t feel comfortable in initial discussions, seek out a different operator.

Few people think about what happens after the death of a loved one until it takes place. Preparing for the legal process that occurs after a death will remove a lot of pressure at a difficult time and make the mourning period easier for everyone.