How to Reduce the Time, Expense and Hassle of Administering a Decedent's Estate
January 29th, 2020 by admin
The administration of a loved one’s final estate can often be more difficult, expensive and time-consuming than it needs to be.
Over the years, I have handled hundreds of estate administrations, and the best legal problems one may have are the ones which never happen. But it takes some understanding of how these problems, often with expensive steps to fix or minimize the consequences, can be largely avoided.
Over the next few columns, we will provide some practical tips on ensuring a smooth estate administration.
- Where is the will? You would be surprised at the number of people who pass away and their last will cannot be located. Family members believe a will was done at some point, but they have no idea where it is.
Best Practice: Your executed will should be kept in a secure place, and your proposed executor (the person who administers the estate) or a trusted family member needs to know where it is. A will a family is sure was done but which cannot be located is no will at all.
- What happens if there is no will that can be found, or the loved one did not execute a will? The State of North Carolina, by statute, writes a will for you, and it is highly likely not going to go the way you would want it to go.
Best Practice: If you want to ensure more time delays, higher expenses, and increased lawyer fees, do not have a will. Without a will, there will be challenges created during the estate administration, and you will likely have greater problems after the estate is closed as well.
- What are the assets of the decedent?
A regular issue in an estate administration area occurs when an asset is discovered after the estate administration is completed (dividend checks on forgotten stock holdings, for example). The estate must be reopened, often at some considerable expense, further delaying the overall resolution of an estate, and it often takes a fair amount of time if notices to potential creditors must be run again.
A searching and thorough review of common asset categories on the front end of an estate is very important. It makes a lot of sense to be sure a knowledgeable person familiar with these issues is involved.
Even a trusted family member sometimes does not know what they do not know about their loved one’s assets. Decedents may be reluctant to discuss fully the extent of their assets with family members. It makes sense to contact a decedent’s financial adviser, accountant, and attorney to see if they have a more comprehensive picture of the decedent’s assets. These advisers also know more of the various categories/places to consider to be sure assets are not hurriedly overlooked.
Best Practice: Have a comprehensive list of your assets and be sure your loved ones or representatives know where it is.
4.Burial Wishes. Individuals may provide this information in their will, but the will is sometimes not reviewed until after one’s funeral services. Any instructions regarding one’s burial plans, burial plots, choice of burial or cremation, and funeral home of choice cannot be undone at that point.
Best Practice: Burial wishes should be included in one’s health care power of attorney, and one’s plans should be fully known by family members ahead of time so there is a clear understanding of your wishes, and any advance planning you may have already done. (The purchase of a pre-paid funeral burial/cremation plan, for example.)
The next column will address other common issues in the administration of an estate and practical ways to reduce problems and unnecessary expenses.
Remember: An informed choice is a smart choice.
This article was originally written by Mike Wells and published by the Winston-Salem Journal. To read the full article, visit the Winston-Salem Journal online here.
Posted in: WS Journal Articles