If you’re the executor of an estate, then you have a lot of responsibilities on your plate. And if you don’t carry out your duties like you’re supposed to, then beneficiaries could miss out on their inheritances and the estate can lose a significant amount of value due to otherwise avoidable costs. Therefore, you need to be able to navigate the probate process with confidence.
While this certainly requires reading up on what the probate process entails, it also means recognizing some of the most commonly made mistakes. Being aware of these pitfalls allows you to quickly identify them and swiftly act to avoid them, thus protecting the estate’s interests and the well-being of named beneficiaries. With that in mind, let’s look at some of the biggest mistakes that can be made when navigating the probate process and what you can do to avoid them.
Avoid these mistakes when dealing with probate
There are several missteps that can be made when administering an estate. Some are minor or easily correctible, while others can have devastating consequences. Here are some of the more severe mistakes that you’ll want to avoid:
- Neglecting to keep accurate and complete records: When you administer an estate, you’re responsible for keeping track of the estate’s assets and paying its debt obligations. You’ll also need to keep record of asset distributions. If you have incomplete or inaccurate accounting records, then your ability to fulfill the fiduciary duty will be drawn into question. This could lead to your own legal issues. So, read through everything like you’re a judge who is scrutinizing the records and itemize everything. Also, make sure that all changes in value to the estate are clearly documented and explained.
- Failing to remain in contact with beneficiaries: As an estate executor, you should have the estate and its beneficiaries in mind with every action you take. Therefore, you should remain in close contact with heirs and beneficiaries identified by the estate. If you fall out of touch with them, then you could wind up under a cloud of suspicion, with each beneficiary suspecting you of wrongdoing. This is easily avoidable by simply remaining in touch, either directly or through your attorney.
- Releasing assets too soon: When an estate goes through probate, creditors have a specified timeframe during which they can file a claim to recoup debts owed by the estate. If you succumb to pressure from beneficiaries who are looking to quickly seize their inheritance, then you could end up creating even more legal headaches for the estate that prove costly. So, be sure to educate yourself on the timeframes applicable to creditor claims and hold off on asset distribution until you’re in the clear.
- Sitting on the estate for too long before initiating probate proceedings: You need to be timely in initiating probate proceedings, otherwise there may unexpected issues that arise. This can include the incurrence of additional fees and taxes, as well as threatened litigation by creditors and heirs. Make sure you understand your obligations as an estate executor so that you can take timely action to fulfill your duties.
Know how to navigate the probate process with confidence
There’s a lot to think about when you’re responsible for managing an estate. And the stakes are high. Fortunately, you don’t have to shoulder the burden on your own. Instead, you can secure assistance from your attorney, who can help you abide by the law, protect the estate and ensure that you fulfill your obligations as it relates to paying debt and distributing assets. With this assistance on your side, you can rest easy knowing that you’ll fulfill the vision that the estate plan’s creator envisioned.
