When a person who has an estate plan passes away, their estate administrator takes on the responsibility of handling the estate’s affairs. Throughout the process of handling the estate, it’s critical that the administrator follows the estate creator’s wishes. They also must uphold the best interests of the beneficiaries.
There are many duties that the estate administrator needs to complete. These include:
Gathering assets
One of the first tasks the estate administrator must do is to locate the assets involved in the estate. This can include things like personal and real property, financial accounts, investment accounts and anything else named in the estate documents. These assets may need to be secured, which can include notifying the banks of the decedent’s death or changing locks on real property.
Paying debts and taxes
Another duty of the estate administrator is paying all the outstanding debts of the estate. They must ensure the estate’s taxes are filed and pay any taxes that are due. They also need to pay off bills and loans.
Notifying beneficiaries and creditors
The administrator must handle all formal notifications, including those that must be made to creditors and beneficiaries. Publishing a newspaper notice may be necessary to alert creditors.
Distributing assets
The assets that remain after debts are paid have to be passed to the beneficiaries, so this is the duty of the administrator. This is done according to the instructions in the estate plan. If there’s no estate plan, the state’s intestate laws are followed.
Closing the estate
Having a legal representative can help ensure they handle all necessary tasks before formally closing out the estate. This involves filing a final accounting of all transactions to the court.