The loss of a loved one is a traumatizing event in a person's life. In some cases, you know that the person is going to pass away soon. Other cases come as a total shock. No matter which one of these your loved one's death falls into, you might be the person who is faced with handling the estate.
Many people think that when they die, their debts die with them. This is exactly what happens for some individuals who don't have an estate to leave behind, but the debts of people who do have assets when they die will have to be paid following very specific guidelines.
Estate administration is something that is difficult to handle for some people. These duties come at a time when you are dealing with the loss of a loved one. This is why some people choose someone not related to them to handle these duties.
Naming the executor of your estate is a big decision. It is easy to just jot down the first person who comes to mind. However, the person you name has very specific duties to perform. If they can't do those in accordance with the applicable laws, there is a chance that your loved ones will suffer the consequences.
The administrators of an estate have a lot of responsibilities. Ensuring that you meet the responsibilities head-on is necessary because you need to get the estate handled. You are facing another challenge if you were close to the person who passed away because you have to try to set your emotions aside at this point.
The administrator of an estate has a lot of duties to fulfill. We recently discussed the duties of the administrator when the decedent has debts. This is only one consideration that the administrator has to think about. We understand how it might be a bit overwhelming to have to deal with the duties of estate administration when you are still trying to deal with your loved one's death.
The death of a loved one is a sad time under any circumstances, and it can be a stressful one if you have been tasked with administering the estate. However, what if you find out that the deceased had considerable debt? What are your responsibilities?
Probate is the process by which courts adjudicate estates. Courts apply state laws to the matter, and they also consider the legal documents that are present in the estate, including wills and trusts. Most estates go through some version of the probate process, though certain assets can be protected from the process by placing them in trusts. Payable-on-death accounts such as life insurance policies also don't have to go through probate.
When someone dies, there might be a need to go through the probate process. This is necessary if the person had significant assets that need to be handled. The probate process involves the administration of the decedent's estate by the person the named executor or personal representative.
Over your life, you worked hard to build wealth and gather assets. You might not want to leave them behind when you pass simply so they can go to waste. If you know that your heirs aren't great with money or you think they are shying away from success, you might create an incentive trust to encourage them to do something desirable.