Estate planning can seem like an exercise in document creation. Indeed, you have to state your wishes in writing in one way or another. However, estate administration is another facet that you should consider when you are devising your estate plan.
If you use a last will to serve as a vehicle of asset transfer, the person who will administer the estate is called the executor or personal representative. We should point out the fact that a female estate executor is sometimes referred to as an executrix.
The executor cannot act alone in a vacuum after you pass away. Except for small estates, the will would be admitted to probate, and the administration of the estate would be supervised by the probate court.
During probate, there is a proving of the will. The court examines the will to make sure that it is valid, and arguments could be presented during probate if anyone wanted to contest the validity of the will.
Final debts would be paid during this process, and ultimately, the executor would prepare the assets for distribution to the heirs.
Clearly, it is possible to name someone that you know to act as the executor. However, there are also professional fiduciary entities that can be engaged to handle the estate administration tasks.
If you would like to obtain some detailed information about the process of probate, download our special report on the subject. This report is free, and you can access your copy through this page: Free Probate Report.
Trusts can be useful for a wide range of people, and there are different types of trusts. One very commonly used trust is the revocable living trust.
The person or entity who handles the trust administration tasks is the trustee. If you use a revocable living trust, you can act as the trustee while you are living. In the trust declaration, you name a successor trustee to take over the role after you pass away.
Once again, you can name an individual to act as the trustee, but you could alternately utilize a trust company or the trust section of a bank. There are various different advantages that you gain when you use a corporate trustee. For one, there are no conflicts of interest, and there would be no longevity concerns.
Plus, you can be certain that the trust would be administered in accordance with professional standards.
We also have a free special report that you can download to obtain more comprehensive information about trust administration. To obtain your copy of the court, click this link: Trust Administration Report.
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If you would like to take things a step further, feel free to contact us through this page to request a consultation: Sacramento CA Estate Planning Lawyers.