The Ins and Outs of Estate Administration

7616 LBJ Freeway #120, Dallas, TX 75251Phone: (972) 386-4560
THE INS AND OUTS OF
ESTATE ADMINISTRATION

WHAT YOU NEED TO KNOW ABOUT
ESTATE ADMINISTRATION

It can be an incredible honor to be named as
executor of a loved one's estate.

The opportunity to serves as a
fiduciary – someone in a position of
trust and confidence – is an
important one.

But, if you don't have any
experience, you may feel a bit
overwhelmed.
This article will discuss some of the
basic duties of an executor and
general information regarding the
estate administration process.

WHAT IS INVOLVED IN
ADMINISTERING AN ESTATE?

First, the basic purpose of estate administration
is to provide court-supervision over the transfer
of estate assets in an organized manner

The process is based on the probate
laws of the state where the deceased
individual resided.

The two primary goals of the
probate process are to pay off the
remaining debts and distributing
the assets of the estate to the heirs
or beneficiaries.

HOW TO INITIATE THE ESTATE
ADMINISTRATION PROCESS

The probate process basically begins in the
appropriate court for the county where the
deceased was living at the time of his or her
death.

The first step is filing an application
with the court.
Once the application has been filed,
certain citations and notices must
be given depending on the case
before a hearing can be scheduled.

HOW ARE ASSETS DISTRIBUTED?

First in line to receive a distribution from an
estate are the creditors.

Put another way, before any assets
can be distributed to heirs or
beneficiaries, all creditors with
legitimate claims must first be paid.

Once those items have been paid,
the remaining assets can be
distributed to the appropriate heirs
and beneficiaries.

DISTRIBUTIONS MADE TO HEIRS
AND BENEFICIARIES

After debts and other expenses have been paid,
distributions required by will or trust are made,
including bequests of specific gifts, cash or
property.

Once those initial distributions have
been made, any property that
remains can be distributed to the
person chosen to receive the
remainder of the estate.

Based on the types of the assets
involved, the property can be
distributed directly to the heirs.

However, in some cases the
property must first be transferred to
a trust, if that is required by the
terms of the estate plan.

THE CONSEQUENCES FOR
EXCLUDING CREDITORS

This mistake could come with some very
serious consequences.

Although executors are not usually
held legally responsible for debts
and estate taxes, when creditors or
taxes are not paid and there are
insufficient funds remaining to pay
these expenses, the executor could
be held responsible.

MEETING DEADLINES IS
EXTREMELY IMPORTANT

Missing a court-imposed deadline or the deadline
for filing the estate tax return can be a significant
mistake.

If, for any reason, you are unable to
comply with a court deadline, you
should always appear in court and
explain why you were unable to do
so.

As for estate taxes, the estate tax
return (Form 706) is due within
nine (9) months of the decedent’s
death. Estate or trust tax returns are
due on April 15th, just like personal
income tax returns.

CONCERNS WITH THE
ADMINISTRATION OF A TRUST

Administering a trust is similar to administering
an probate estate.

There can be differences in how you
handle the principal of the trust and
the income derived from the trust
property.

One example may be transferring
the principal to one person, while
someone else receives the income. If
you mishandle these types of issues,
you may be held responsible for the
mistake.

GET EXPERT ADVICE IF YOU HAVE
QUESTIONS ON HOW TO
PROCEED

There is really no such thing as "standard"
distribution provisions.

The terms of every will, trust or
other estate planning document are
unique and should be reviewed
carefully. It would be a mistake for
any executor to make assumptions
about what needs to be done.

If you are confused about any
aspects of your duties as executor or
if you lack any financial experience,
consult with an attorney.

CONTACT US!

If you have questions regarding
estate administration, or any other
estate planning needs, please
contact The Vermillion Law Firm,
LLC either online.

LEARN MORE ABOUT THE INS AND
OUTS OF ESTATE ADMINISTRATION
IN TEXAS

(972)386-4560
www.VermillionLawFirm.com
The Vermillion Law Firm, LLC

The Ins and Outs of Estate Administration

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Mehr von Jennifer Vermillion

Mehr von Jennifer Vermillion (13)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

The Ins and Outs of Estate Administration