Probate & Administration

There comes a time when the rubber meets the road and the estate planning must end. We all eventually die. When a family member dies, their estate will likely go through either or both, probate or trust administration. The process fundamentally looks similar either way.

Both probate and trust administration consist of marshalling assets, paying bills, providing an accounting to all parties, and finally, distributing the remainder of the assets to the beneficiaries of the estate. Each of these tasks often overlap the others, but can also be done in a complete step by step manner.

The process of gathering the assets of a trust or probate estate is called marshalling assets. This usually entails obtaining keys to the home and securing it and the personal property within it. It also includes locating bank accounts, investment accounts, and insurance policies, notifying the associated organizations that the owner has passed. Marshalling assets may also include picking up property in bank safe deposit boxes, and securing automobiles and other vehicles belonging to the decedent.

Once the assets have been gathered and protected, the trustee or personal representative pays the bills and expenses of the estate. Commonly, this includes routine bills such as utilities, cell phone plans, and debt payments. The trustee or personal representative also checks with healthcare providers for any remaining bills from prior healthcare visits and from the last illness of the decedent.

Now that the assets are gathered, and the bills paid, the personal representative or trustee of the estate prepares an accounting for all the beneficiaries. The accounting will include a list of all of the assets gathered and a list of all expenses paid. Generally, the accounting is provided to all beneficiaries, but sometimes, a beneficiary does not need or waives an accounting. Beneficiaries designated to receive a specific bequest such as a certain item, or a sum certain, usually do not receive an accounting when they are paid everything they are entitled to receive. Many waive their accounting as well if the assets transferred are few, when assets transferred have low value, or when trust is high between the beneficiary and those receiving the assets.

After the accounting, each party entitled to receive assets from the estate receive their distribution they are entitled. It is important to know the difference between per stirpes and per capita at each generation.

Marshalling Assets

To see what Paul Maxfield can do for your estate administration or probate needs, call Maxfield Law today:  (385) 298-0700