What is Estate Administration?
Estate administration is the process of carrying out the provisions of an estate plan after the owner of the plan dies. This process typically involves the following steps:
Probate:
If the decedent had a will, the will must be filed with the probate court. The probate process involves verifying the authenticity of the will, identifying the deceased's assets, paying any debts and taxes, and distributing the remaining assets to the beneficiaries according to the terms of the will.
Appointing an administrator:
If the decedent did not have a will, or if the will does not name an executor, the court will appoint an administrator to manage the estate.
Gathering and valuing assets:
The administrator or executor is responsible for identifying and gathering all of the decedent's assets. This may include real estate, personal property, financial accounts, and business interests. The assets must be valued for probate and tax purposes.
Paying debts and taxes:
The administrator or executor must pay any outstanding debts and taxes that are owed by the estate. This may include credit card debts, mortgages, and other debts, as well as federal and state taxes.
Distributing assets:
After debts and taxes have been paid, the remaining assets are distributed to the beneficiaries according to the terms of the will or trust. If there is no will or trust, the assets will be distributed according to state law.