Executor Duties in Victoria: Commission, Accounts & Personal Liability 

Being appointed as an executor or trustee of a deceased estate in Victoria is both an honour and a serious legal responsibility. Executors are entrusted to carry out the deceased’s wishes, administer the estate in accordance with the will, and act in the best interests of the beneficiaries. 

However, with these duties come legal, financial, and ethical challenges — from managing estate accounts and applying for commission to addressing conflicts of interest and avoiding personal liability. At Pentana Stanton Lawyers, our probate lawyers in Melbourne provide trusted advice and representation to executors and trustees across all aspects of wills, estates & probate in Victoria. We help clients understand their obligations, mitigate risks, and navigate complex estate administration with confidence. 

Understanding Executor Duties in Victoria 

Under Victorian law, an executor’s core duties include: 

• Identifying and protecting estate assets; 

• Paying estate debts and taxes; 

• Distributing the estate to beneficiaries; and 

• Keeping detailed and accurate estate accounts. 

These responsibilities require diligence and transparency. Executors must comply with both the Supreme Court of Victoria’s probate rules and the equitable fiduciary principles established by case law. Errors, omissions, or misuse of estate funds can expose an executor to personal liability. 

For a detailed overview of estate administration and executor responsibilities in Victoria, visit our Wills, Estates & Probate hub or read our guide on Executor of a Will in Victoria: Duties, Probate & Legal Tips. 

Executor Commission in Victoria 

When Executors Can Claim Commission 

Executors are not automatically entitled to payment for their work. However, if their efforts in administering the estate have been substantial, they may apply for executor’s commission. This payment compensates for the “pains and troubles” involved in managing the estate — recognising the time, skill, and responsibility required. 

Applications can be made to: 

• The Supreme Court of Victoria, or 

• By consent of all adult beneficiaries if they agree on a fair commission amount. 

How Executor’s Commission Is Calculated 

Courts typically assess the value and complexity of the estate, the diligence shown by the executor, and the quality of administration. While each case is unique, commissions commonly range between 1% and 5% of the estate’s gross value. 

The Victorian Law Reform Commission recommends that commissions reflect the work’s complexity and benefit to the estate.  

Our probate lawyers assist executors in preparing and presenting commission applications that meet legal requirements and withstand scrutiny, ensuring that compensation is fair and compliant. 

Passing of Accounts: Accountability and Transparency 

Why Executors Must Keep Proper Accounts 

Executors have a fiduciary duty to act honestly, maintain accurate records, and account to beneficiaries. The passing of accounts is a process through which the Supreme Court reviews estate transactions to ensure funds have been properly managed. 

Maintaining full, detailed accounts protects the executor from claims of mismanagement and demonstrates transparency in handling estate assets. 

When Accounts Must Be Passed 

Executors may be required to pass accounts when: 

• A beneficiary requests it; 

• There is a dispute about estate management; 

• The executor is applying for commission; or 

• The court orders it. 

Executors who fail to comply with accounting obligations risk being personally liable for losses or even removed from their role. Our team assists in preparing compliant financial accounts and liaising with the court to ensure smooth proceedings. 

For procedural details, see the official Supreme Court of Victoria Probate Rules or explore our feature on Probate in Victoria 2025: Costs, Timeframes & Mistakes for insights into the broader probate process. 

Managing Conflicts of Interest 

Conflicts of interest often arise when an executor is also a beneficiary, or when they have a personal or financial interest in an estate asset. Executors must act impartially and avoid situations that place personal interests ahead of their fiduciary obligations. 

Common Conflict Scenarios 

• Buying estate property personally; 

• Favouring one beneficiary over another; 

• Using estate funds for personal gain; 

• Engaging family members or associates in estate transactions without disclosure. 

At Pentana Stanton Lawyers, we help executors identify potential conflicts early and take corrective action to avoid legal disputes. Transparency, disclosure, and independent valuation are key tools in maintaining integrity and compliance. 

Executors facing challenges or disputes may also find our article on Challenging the Validity of a Will or Defending Against a Challenge to a Will useful for understanding the legal process and available options. 

Executors may also find practical estate-management resources from State Trustees Victoria. 

Personal Liability and Risk Management 

When Executors Become Personally Liable 

Executors can be held personally responsible for financial loss if they: 

• Distribute assets before debts or taxes are paid; 

• Fail to secure or insure estate property; 

• Misapply funds; or 

• Breach their fiduciary duties. 

Even well-intentioned mistakes can lead to significant financial exposure. The law holds executors to a high standard of care, as they are managing assets that belong to others. 

Reducing the Risk of Personal Liability 

To mitigate risk, executors should: 

1. Obtain probate before dealing with assets; 

2. Keep thorough records of every transaction; 

3. Communicate transparently with beneficiaries; 

4. Seek judicial advice from the court when uncertain; and 

5. Obtain professional legal guidance from a wills, estates & probate lawyer in Melbourne. 

Our team regularly advises executors on how to manage risk and comply with their legal obligations. Executors may also consider executor insurance for additional protection. 

For further information on contesting wills and related disputes, visit Victoria Legal Aid’s guide to challenging a will. 

Executor Commission Applications: Key Considerations 

Preparing a successful commission application requires attention to detail and compliance with court procedures. Executors should: 

• Provide affidavit evidence outlining their work; 

• Submit complete and verified accounts; 

• Disclose any conflicts or disputes; and 

• Justify the commission amount based on the estate’s value and complexity. 

Courts typically award higher commissions for complex matters, such as managing litigation, resolving disputes, or administering businesses or real property. 

Our lawyers assist executors in drafting persuasive applications that reflect both the workload and the benefit delivered to the estate. 

Why Executors Choose Pentana Stanton Lawyers 

Administering an estate can be legally intricate and emotionally demanding. At Pentana Stanton Lawyers, our experienced probate lawyers in Melbourne guide executors through every stage of the process. 

We assist with: 

• Probate and estate administration; 

• Executor commission and reimbursement claims; 

• Passing of accounts and financial reporting; 

• Managing conflicts of interest; and 

• Defending executors against allegations of breach or negligence. 

Our goal is to ensure executors fulfil their duties lawfully, efficiently, and with minimal personal risk. 

For related guidance, see our Wills, Estates & Probate service page. 

Frequently Asked Questions (FAQs) 

Trusted Guidance for Executors in Victoria 

Acting as an executor or trustee in Victoria involves significant responsibility and complex legal obligations. From managing estate assets and applying for commission to addressing conflicts of interest, every decision requires care, compliance, and sound judgment. 

At Pentana Stanton Lawyers, our experienced probate lawyers in Melbourne provide clear, strategic advice to help executors meet their legal duties with confidence. Whether you need assistance applying for commission, passing accounts, or navigating potential liability, we deliver practical, outcome-focused support tailored to your circumstances. 

Speak with our team today to receive expert guidance from trusted wills, estates & probate lawyers in Melbourne.