Estate administration can be a very complicated and emotional process. A loved one – your spouse, parent, sibling, friend – has died and you are now faced with unfamiliar responsibilities. You also have an official new title: Executor, Trustee, or Administrator. If you are the Trustee of a Trust, you must properly administer the Trust, pay the bills, file the tax returns, collect the assets, and then distribute the estate to the beneficiaries. Since beneficiaries can question the actions of the Trustee and complain to the Court, you must be sure you comply with the myriad of legal requirements. If you are an Executor or Administrator, you have these same responsibilities, and must also comply with the Probate Court rules and timetables.
You have been placed in a position of great trust. The beneficiaries, the decedent’s creditors, the tax authorities, and even the Court can demand a lot of you. Although the beneficiaries are entitled to ultimately receive distributions from the estate, it is your responsibility to satisfy the obligations of the decedent, cover the expenses of administration, such as attorney’s fees, accountant’s fees, tax liabilities, expenses for the maintenance of various assets and other related expenses, etc. If you distribute the estate property to the beneficiaries before satisfying all the estates expenses, you may be held personally liable for those costs, effectively making the decedent’s creditors your own.
It is important that you understand your legal obligations and duties before acting in a fiduciary capacity. This will make the estate administration easier, prevent costly mistakes and potential personal liability.
For an appointment, please call the Law Office of Jane M. McNamara at 661-287-3260.