The Risks of the Public Trustee as an Estate Planner and Administrator
The Public Trustee (“PT”) of Queensland is a body that seemingly offers prospective Will-makers an Estate Plan, often free of cost and stress. But for those who employ the PT to write their Will and act as Executor, is this the reality? As more Australians recount their damning experiences with the PT, it becomes more apparent that the answer to such a question is no.
Each Australian State and Territory has its own PT that operates independently of the others. The most significant services provided by the PT are the administration of deceased estates (for more information on Estate Administration, read this) and Will-making.
These two services usually go hand-in-hand. It is very common for Will-makers who come to the PT to also appoint them as Executor. The Executor is tasked with following the wishes of the deceased according to their Will. While the fee offered by the PT for Will-drafting is very low, or sometimes free, their fees for acting as Executor are much higher. Will-makers may appoint anyone over 18 years to be Executor, such as a spouse, child or friend. In these cases, it is very rare for such a person to charge fees. Otherwise, a Will-maker may appoint a professional, such as their lawyer or accountant. In these cases, it is common for the professional to charge fees to do so.
Where the PT is appointed however, they will charge significant fees for acting as Executor, often in excess of any other company, such as a law office. This is of particular concern as the person at the PT who administers the estate may not even be a legal professional!
The PT will usually take its fees from the estate of the deceased. In the last few years, many families of deceased persons who have appointed the PT have come forward to report on significant depletions of the estate of the deceased, that fall outside of any realistic expectations. This means that the gifts made by the deceased to their family will be diminished.
A quick Google search will reveal many disturbing instances of the various PTs in Australia overcharging and under-delivering while administering estates. In one such case, the Queensland PT made enquiries regarding the deceased’s mental capacity at the time she made her will. This is a legal obligation for Executors, and on its own isn’t a problem. However, this investigation spanned two years after the death of the deceased and led to the PT charging the estate $20,000. What is worse is that no one was disputing the will, and the deceased had passed a cognitive test at her doctor three weeks before making it. After the family demanded an itemised bill from the PT, they found that the PT had charged the estate $378 per hour of work. For more information on this story, click here.
Perhaps the most damning account of the PT’s dealings as Executor comes from the experience of Siham Benz and her late mother, Amina Carollisen. Upon Ms Carollisen’s death, the PT of Western Australia began asking Ms Benz about household spending and after five months, she was arrested for theft. Two and a half years later, the matter was held in Court, where the jury found that Ms Benz was not guilty. What was most shocking about the matter was that the PT charged the estate, which was meant to go to Ms Benz anyway, $10,000 in legal fees. The PT billed for services such as $90.99 for sending a letter and $136.49 for phoning to report the matter to the police. For more information on this story, click here.
When anyone appoints the PT as their Executor, they risk sizeable portions of their loved one’s inheritances. They also risk a drawn-out and confusing process for their loved ones at a time of grieving. For straightforward Estate Planning free of agendas and transparent and effective Estate Administration, book a consultation with Direct Lawyers today.