Serving as an executor is an important responsibility, but it is also a role that carries risks. Executors are expected to administer the estate fairly, follow the terms of the will, and comply with their legal duties. When disputes arise or mistakes are made, executors can find themselves personally exposed to liability and conflict with beneficiaries.

One of the most significant risks for executors is personal liability. If estate assets are mishandled, if beneficiaries are treated unequally, or if debts and taxes are not dealt with before distributions are made, an executor may be held personally accountable. Delays in administration, undervaluing or mismanaging assets, and failing to act impartially can all result in claims against an executor. In some cases, the court may even remove an executor if they are seen to be acting improperly.

Taxation also presents challenges. Executors are responsible for ensuring that the estate complies with tax obligations, which may include lodging the deceased’s final tax return, handling the estate’s own returns, managing Capital Gains Tax on property or share sales, and paying any outstanding debts to the Australian Taxation Office. If these obligations are overlooked or handled incorrectly, the executor may face personal liability for penalties, interest, or unpaid tax. These obligations can be complex, particularly where large or diverse estates are involved, and it is easy for well-meaning executors to make mistakes without proper guidance.