If you’ve been selected as the administrator of a friend or family member’s estate, it’s essential that you settle the deceased’s debts and distribute the assets from their estate to their beneficiaries according to their wishes. With the help of an experienced Pennsylvania estate administration attorney, you can avoid making some of the most common administration mistakes.
Delaying Opening the Estate
One of the first mistakes some administrators make is failing to open the estate in a reasonable time. In Pennsylvania, an estate can only be opened once the administrator files a petition with the Register of Wills in the county where the deceased lived.
Delays in opening the estate may result in some records and assets being misplaced before the administrator can account for them, or lead to the unauthorized acquisition of the deceased’s property by potential beneficiaries.
The simple way to avoid this mistake is to obtain a copy of the deceased’s will and file the petition with the Register of Wills as soon as possible.
Mismanaging Assets
Estate administrators are responsible for managing the deceased’s assets until they can be distributed to beneficiaries through the probate process or other estate planning tools. Failing to manage these assets properly could result in missing assets or assets losing significant value, such as in the case of a home that sustains severe damage.
To avoid this mistake, administrators should keep property insured, regularly check the status of major assets, and review financial documents to make sure everything is accounted for. While this can be overwhelming for someone without prior estate administration experience, a lawyer can help.
Making Premature Distributions
If beneficiaries are pressuring an executor to distribute assets to them, the executor may do so before they are legally allowed. In Pennsylvania, the estate’s debts and expenses must be paid before beneficiaries can receive asset distributions. Failing to handle the estate in the proper order could lead to liability for creditor claims.
An administrator should always follow the proper procedures for paying off creditors and other expenses to prevent assets from being prematurely distributed.
Poor Communication With Beneficiaries
Failing to keep beneficiaries informed about the estate’s status can lead to a wide variety of problems, including suspicions that the estate isn’t being handled properly. If beneficiaries lose confidence in the administrator’s ability to manage the estate, it may result in disputes between them and even litigation over the distribution of assets.
While administrators should not give in to beneficiary pressure, they should keep all beneficiaries informed, including by notifying them whenever there is a disruption that could slow down the probate process. Clear communication is the most effective way to avoid disputes.
Failing To Keep Detailed Records
Administrators must document all assets that make up the estate to make sure they are accounted for and distributed to the intended beneficiaries. This also helps the estate pay off creditors without depleting its assets.
Poor record-keeping can lead to a range of issues, including missing assets, delays in distributions, and litigation from beneficiaries. To avoid this, administrators must keep receipts, bank statements, lists of assets and their values, and records of other financial activities performed by the estate to make sure the process of closing it proceeds smoothly.
Contact Our Pennsylvania Estate Administration Lawyers
Are you the administrator for an estate in Cambria, Somerset, Bedford, or Indiana County? Contact Silverman, Tokarsky & Forman, L.L.C., to speak with an estate planning lawyer about your role and for assistance with your duties as executor. Our law firm offers insight, strategy, and action to estate administrators in need.
