Philip M Hawes, Esq

Philip M Hawes
Attorney & Counselor

Estate Administration Fundamentals . . . .

Estate Administration is a general term that stands for what occurs when someone else is managing your assets (your “estate”) and financial affairs, both during your lifetime and following your death.

For more information, please refer to the article “An Overview of Estate Administration” that is linked here and on the Resources & Links page.

The lifetime management of your estate may be done by the Trustee of your living trust, by a Conservator appointed by the court, and sometimes by an Agent under a power of attorney. All of these fiduciaries have a set of very stringent duties of fidelity and a high standard of care that, by law, are owed to you and, in some cases, to your beneficiaries.

What do I mean by “administration” in this context? If someone other than you steps in as the trustee of your living trust, or is appointed as your conservator or agent under power of attorney, that person must act in accordance with fiduciary standards, which are described on the page “What Trustees Must Know”.

As a practical matter, your fiduciary will take charge of your finances, pay your bills, oversee the investment of your assets (if you have invested assets), keep your property (your home and any tangible items) in a good state of repair, maintain insurance on your property, provide you with food, clothing and shelter items, attend to your tax returns, arrange for care you may require, etc. In other words, just what you would do for yourself if you were willing and able.

After death, the focus of estate management shifts to settling your affairs and distributing your estate as directed in your Trust, your Will, or by the default rules for succession that are part of the Probate Code. Your estate may be managed informally by the trustee of your trust, by using the small estate provisions in the Code, or formally in a court-supervised probate. However this is done, your fiduciary’s task is slightly different than while you were living. For example, your Trustee must . . . .

- Arrange or assist to arrange the disposition of your remains according to your wishes (refer to Advance Health Care Directive or pre-arrangement with funeral home).

- Obtain certified copies of death certificates and locate documents relating to the ownership and transfer of assets: for example, real estate deeds, vehicle titles, other title documents, access to your safety deposit box (where is the key?), all your financial records, tax returns, current bills and accounts, access to your computer, phone and any other electronic accounts, including logins.

- Locate life insurance policies and process claims for benefits. You will be asked to provide a copy of the death certificate and accurate contact information for each beneficiary.

- Locate, safeguard and value your assets: prepare a full and accurate inventory and valuation of the assets in your estate, both in and outside of your trust. Copies of the completed inventory and valuation should be shared with beneficiaries.

- Determine whether probate will be required for any assets not held in your trust, and initiate the probate proceeding if needed.

- Provide notices as required by law, such as notice to the beneficiaries of your death, notices to government agencies that have provided you certain benefits while you were living, etc. If you have a living trust, the beneficiary notice will include information about the trust and trustee and the opportunity to contest any part of the trust within a limited period of time. Your trustee should provide each beneficiary with a copy of the trust in its final form as of your death, including any amendments you made to it before that time.

- Ascertain and pay all valid debts and obligations remaining after death, including obligations of your estate or trust that are incurred in relation to this task.

- Maintain accurate and complete books and records of account and prepare at least one full and complete accounting of your acts and transactions in your fiduciary capacity (as Trustee, Executor, or Administrator of the estate), which must be provided to all beneficiaries in most cases.

- Prepare and timely file the decedent's final income tax returns and, if required, returns for the estate and/or trust you are administering. If the estate will be required to file an estate tax return, obtain professional help.

- When all is said and done, distribute the net estate or trust assets in the manner and to the persons and/or entities specified in the decedent's plan documents or, if none, determine the decedent's heirs at law for this purpose.

These are many, but certainly not all, of the typical duties performed by your Trustee, Executor or the Personal Representative of your estate after your death, the goal of which is to settle all of your obligations and distribute your estate according to your instructions.

I can imagine that all of this is “new information” for most people, and that someone undertaking these tasks would benefit from some coaching.

I have ample experience in this area and have assisted many individuals and families through this maze. I am able to simply provide you with the pointers you will need for the particular estate you will manage, or take a more “hands-on” approach and do some or all of this work for you. I am ready to lend a hand!