Managing an estate for deceased parents can be a big responsibility.

Although the death of parents is a part of every child's life, it does not make this experience easy.

The loss is deep, emotional, and lasting.

Loved ones, once available for support, advice, and encouragement, are no longer present.

If they have tasked you with administering their estate, you may find yourself desiring to reach out to them.

According to the Bereavement Advice Centre, many adult children struggle to understand their roles after the death of their parents.

Whether your parents died without a plan or created a will or trust, managing an estate requires practical, financial, and legal action to be taken.

Administrators and executors must pay off debts, distribute assets, and comply with local probate laws.

Managing an estate is worse if you do not understand the requirements.

What Does It Mean to Manage an Estate?

Managing an estate requires the designated individuals to settle the affairs of their deceased loved ones.

What must this executor or administrator do?

They must find out whether a will or trust was created and locate the documents.

If there is a last will and testament, it must be filed with the probate court.

The court will appoint an administrator when no estate plan is created.

Often, the court will appoint a close relative to serve in the role.

The executor or administrator must inventory liabilities and assets and then pay taxes, debts, and administrative costs.

After these payments are made, they must distribute assets to beneficiaries according to the terms of the last will and testament or trust.

Throughout the process, state laws must be followed.

The Role of Probate in Estate Administration

Probate is a legal process where a last will and testament is validated, and the courts oversee the estate administration.

With a last will and testament, managing an estate requires a petition to be filed with the probate court where your parents lived.

What are the common steps in probate proceedings?

First, the last will must be presented to the court if one has been created.

The courts will appoint the administrator or executor according to the terms of the document.

The executor or administrator must notify beneficiaries and creditors and resolve liabilities and debts.

Lastly, assets will be distributed to beneficiaries according to the document terms or state law.

When assets like accounts with beneficiaries or jointly owned property are part of the estate, these can bypass probate.

Steps to Managing the Estate of a Parent

Locate the Will and Other Key Documents

All estate planning documents must be located to effectively administer an estate.

Trusts and wills designate the executor or trust administrator and have instructions for the distribution of assets.

Should no plan be located or in existence, then intestacy laws will govern distribution.

In addition to locating estate planning documents, managing an estate requires finding and gathering certified copies of the death certificate, bank and financial statements, insurance policies, property deeds and titles, and tax returns.

Organizing the documents will make the administration more efficient.

File for Probate

When probate is required, you must file the necessary documents with the court.

This should include submitting a petition to open probate and the last will and testament if it exists.

The court will officially appoint the executor, giving you legal authority to act on behalf of the estate.

Inventory the Estate

A detailed inventory of assets and liabilities is key to effectively managing an estate.

You should include bank accounts, real estate, digital assets, investments, and personal property.

Liabilities might include unpaid bills, credit card balances, or mortgages.

This inventory will be used to determine the estate's value and ensure all necessary payments are made before asset distribution.

Pay Debts and Taxes

Beneficiaries cannot receive their inheritances until the estate pays debts.

You must notify creditors and pay balances with estate funds.

If you do not address the debts, the beneficiaries may face financial complications and legal challenges.

If applicable, final income and estate taxes must also be paid.

Working with an experienced tax professional can help you navigate these steps.

Distribute Assets

After all administrative expenses, taxes, and debts have been paid, the remaining assets can be distributed to beneficiaries.

The best practice is to document all actions to give a clear record to beneficiaries and the probate court.

Common Estate Administration Challenges and How to Address Them

Complications can arise when managing an estate.

Common issues include beneficiary disputes, ambiguous last wills, and surprise debts.

Yikes!

You should openly communicate with all parties to minimize the risk of disputes.

You can also require a probate attorney to mediate the conflict if disagreements arise.

When documents are confusing or missing, you can work with the probate court to resolve the lack of clarity.

Should debts exceed assets, you can consult with an attorney to learn your options for resolving estate insolvency.

Ultimately, the best courses of action are to be proactive and work with experienced attorneys when navigating estate issues.

The Importance of Professional Guidance

The administration of an estate is complex.

Because mistakes can have significant legal and financial consequences, working with a probate attorney and tax professional can help minimize your risk of errors or complications.

Honoring the Legacy of Your Parents

Because managing an estate is a significant responsibility, you should take special care when fulfilling your role.

By utilizing available supports, you can more easily honor the wishes of your parents.

What are Key Takeaways for Managing an Estate.

All estate planning and supporting documents must be gathered and organized to effectively administer an estate.

A petition must be filed with the probate court to validate the will and grant legal authority to the executor to settle debts and taxes before distributing assets.

To reduce the risk of issues, estate administrators should document their actions, communicate clearly with all parties involved, and seek legal advice when necessary.

This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.

Reference: Bereavement Advice Centre "Who is Responsible for What after Someone Dies?"