Before the estate can be distributed, the executor/administrator needs to arrange for payments or be prepared to pay the deceased's debts, funeral and other estate-related expenses.
Debt
Debts can arise both before and after the decedent's death. For example, the deceased may have used his or her credit card to purchase items and died before the balance was due. An example of a debt that arises after death is the management fees of property owned by the deceased. All debts must be identified and paid, or provisions for payment must be established, before the estate can be distributed to beneficiaries.
Tax
The estate is required to pay the salaries tax, profits tax and property tax payable by the deceased up to the date of his death.
Other fee
In addition to funeral expenses, other costs to be paid out of the estate include: costs incurred in obtaining legal advice, fees and expenses incurred in applying for a Grant of Representation, and court fees.
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If the executor does not want to prove the will himself for whatever reason (such as awkward family relationships or time constraints), with the consent of the beneficiary of the will, a Hong Kong registered trust company can be appointed to handle the Grant of Representation.
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