Death brings many duties to those left behind, especially for the person who must handle the deceased’s estate. Many executors face this task for the first time, and the rules can seem daunting. Learning about common errors now will help you avoid problems later.
What does estate administration mean?
Estate administration involves managing money and property after someone dies. The executor must gather assets, pay debts and taxes and give out what remains to the heirs. State laws set strict rules for this process, and executors must follow them carefully. So, before you start handling an estate, know these key errors that often cause trouble:
Early asset handouts
Giving away assets before paying all debts puts you at risk. Wait until you’ve cleared all bills and taxes. Once that’s done, then proceed to handing out assets.
Bad record keeping
You need proof of every dollar spent and received. Save all receipts, bills and bank statements relating to the estate.
Tax filing fails
Missing tax deadlines brings fines. File all required returns on time for both the deceased and the estate to avoid paying unwanted fees.
Going solo
Many people try to save money by not hiring help. This often leads to higher costs when mistakes happen.
Poor communication
Keep heirs informed about your progress. Silent executors often face angry questions or lawsuits from family members.
Taking on estate duties means strictly following state laws. Each error can bring profound results, from fines to personal liability. While these tips help spot common issues, estate law changes often. A qualified attorney can guide you through this process and help protect you from costly mistakes.
