Executor of Will - Transfer Deceased Estate to Beneficiary Before Paying Debts?

[Tipi888]

Can the executor of will transfer the deceased estate to the beneficiary before paying all the debits to creditors? What is the legal consequences of the executor of will, especially if he knows that deceased had some debt?

 

[Therese]

Hi Tipi88,

I believe that the executor needs to pay all debts prior to distributing the estate.
This may be a useful resource: Executor of a Will – Rights and Responsibilities - Legal Blog - LawAnswers.com.au

If this does not occur, it appears the distributions of the estate would be invalid and the court would rule that certain assets need to be used to pay the debts.

In addition, if the executor knowingly refrained from paying debts than he would be breaching his duties and may be personally liable or removed from role of executor.

 

[Tipi888]

If the executor of will is deliberately delaying his duty because he doesn't want to pay the debt owned by the deceased, what can I do?

The deceased estate (1/4 share) which owned by other people are still continuously rented and he is collecting the entire rent just like the deceased used to collect from this co-owned property. He has no intention to change this 1/4 to deceased's daughter because the deceased estate has to pay the back rent to other half owner(surviving) and also another 1/4 share deceased estate which hasn't been finalized last 4 years.

Is there any time frame that the executor has to complete his duty?