FAQ Estate & Trust Administration

An executor is a person appointed in a will to carry out the wishes of the decedent. Their primary responsibilities include filing the will with probate court, managing estate assets, paying debts and taxes, and distributing the remaining assets to beneficiaries. Executors are legally required to act in the best interest of the estate and beneficiaries, following the decedent’s instructions. They may hire professionals, such as attorneys and accountants, to assist with the administration process. If no executor is named, the court will appoint a personal representative.

A trust is a legal arrangement where a trustee manages assets for the benefit of beneficiaries according to the terms set by the trust creator (grantor). In estate administration, a trust can avoid the lengthy and costly probate process, as the assets within the trust typically pass directly to the beneficiaries. The trustee’s role involves managing the trust assets, ensuring compliance with the trust terms, and distributing the assets to beneficiaries as specified. Unlike estate administration through probate, trust administration is generally more private and can be faster.

Probate is the legal process of validating a decedent’s will, if one exists, and overseeing the distribution of their estate. During probate, the court will confirm the validity of the will, appoint an executor (if not already named), and ensure that debts and taxes are paid before assets are distributed. The probate process varies by state, but it typically involves inventorying assets, notifying creditors, and managing disputes among heirs. Probate can take months to complete, depending on the estate’s complexity, and is often public, which may lead some individuals to avoid probate through mechanisms like trusts.

Estate administration generally follows these steps:

1. Initiating Probate or Trust Administration: File the will with the probate court or begin trust administration.
2. Identifying and Valuing Assets: Inventory and appraise the decedent’s assets.
3. Paying Debts and Taxes: Settle any outstanding debts and file necessary tax returns.

4. Distributing Assets: After all obligations are met, distribute the remaining assets to beneficiaries as directed by the will or trust.

5. Final Accounting: Provide a final accounting of the estate’s financial activities to the court or beneficiaries.
   The process varies based on the size and complexity of the estate.

The duration of estate administration can vary significantly. For simple estates, the process might take 6-12 months, while more complex estates can take several years. Factors that influence the timeline include the size of the estate, the number of assets, any disputes among beneficiaries, and whether probate or trust administration is involved. Estates requiring court involvement tend to take longer, as the court must approve various steps in the administration. Trusts, on the other hand, often allow for a quicker transfer of assets because they bypass probate.

Yes, a will can be contested during estate administration. Common grounds for contesting a will include claims of lack of testamentary capacity (the deceased was not of sound mind), undue influence (the deceased was coerced into making changes), or fraud. Contesting a will is a legal process that requires evidence to support the claims. If successful, the will may be declared invalid, and the estate may be administered under a prior valid will or state intestacy laws. Will contests can delay the distribution of assets and lead to costly litigation.