Appointing an estate administrator is an important decision. This person will be responsible for settling your estate upon death, so it is best to select someone who can be trusted to make decisions for the good of your loved ones.
Most people designate family as their estate administrator. For many, this is the most logical choice. However, if family strife exists, appointing family members can cause Administrators additional grief. Sadly, it is not uncommon for war to break out over inheritance property.
The estate administrator will be in charge of multiple duties. Most will require guidance from a probate attorney or estate planner. Probate is the required legal process to settle decedent estates. The process typically lasts 4 to 6 months. During this time, estate assets cannot be sold, traded, or distributed to heirs and beneficiaries unless authorized by the court.
Probate begins once the decedent?s last Will and death certificate are submitted through court. Administrators are required to secure all property owned by the decedent. This duty often falls to the surviving spouse, if one exists. Valuable property must be appraised to determine date-of-death values.
The estate administrator is required to notify creditors of the decedent?s death and make arrangements to pay off outstanding debts. If decedents do not have adequate finances to pay off debts, the court may order estate assets sold. It is best to consult with a probate lawyer to negotiate debts. Creditors are usually willing to accept partial payoffs and write off remaining balances.
When decedents own financial portfolios, estate executors must obtain date-of-death value forms from the financial institution. These forms are sent to the county tax assessor?s office to validate decedents do not owe taxes.
If taxes are due, the estate is responsible for bringing payments current. Once taxes are current, date-of-death value forms are stamped and returned. Afterward, designated beneficiaries can claim inheritance money by presenting decedents? last Will, death certificate, and photo ID.
When decedents own real estate secured by a mortgage note, estate administrators are required to remit payments through the estate to the mortgage company. Failure to maintain installment loans could result in foreclosure. If the estate is financially incapable of remitting payments, the estate administrator will be in charge of listing the property for sale.
These are just a few of the duties required for estate settlement. Every estate is unique and will have different needs. The only way to avoid probate is to transfer estate holdings into a trust. Instead of appointing an estate administrator, trusts are managed by a Trustee. Trust duties are typically less cumbersome than probate because estate settlement requirements are prearranged. Inheritance property usually transfers to beneficiaries within 30 to 45 days instead of months.
The appointed estate administrator receives compensation for their duties. The fee is based on state probate laws and might be a flat fee, percentage of estate value, or hourly wage.
Estate executors must be 18 years of age and never convicted of a felony offense. It is best to appoint a responsible adult who is good with finances and can make difficult decisions under pressure.
It is recommended to designate two estate administrators within the last Will. If the primary administrator is unable to fulfill duties, the second administrator can assume the role. It is best to consult with the individuals you are considering to ensure they are willing and able to assume the role of estate administrator.
Estate planning and probate can be complex matters. Probate liquidator and real estate investor, Simon Volkov shares an extensive estate planning article library covering topics of how to avoid probate, considerations of appointing an estate administrator, ways to protect inheritance property, and minimize estate taxes at www.SimonVolkov.com.
Related posts:
- Bankruptcy in a Nutshell: The Different Types of Bankruptcy
- Getting A Discharge When Filing Bankruptcy
Source: http://www.lineofcreditbusiness.net/2012/03/23/tips-for-choosing-an-estate-administrator/
etch a sketch romney tim tebow ny jets ny jets sean payton saints bounty program toulouse france
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.