Estate administration involves numerous steps, and even small mistakes can cause significant delays or legal complications. As a solicitor, it’s essential to help executors navigate these common pitfalls to ensure a smooth process. Here are five frequent errors and how to avoid them.
1. Failing to Apply for Probate in a Timely Manner
Delaying the application for probate can leave the estate in limbo, making it difficult to access assets or settle debts.
How to avoid it: Promptly apply for probate as soon as necessary documents are available to avoid unnecessary delays.
2. Not Fully Understanding the Terms of the Will
Confusion over the provisions of the will, particularly if there are ambiguities, can lead to disputes between beneficiaries or delay administration.
How to avoid it: Carefully review the will and, if necessary, seek legal clarification to ensure all terms are correctly understood before proceeding.
3. Incorrectly Valuing Assets or Miscalculating Taxes
Incorrect asset valuations or tax miscalculations can result in the estate being underfunded, potentially leading to financial complications or disputes.
How to avoid it: Use qualified professionals to help accurately value assets and calculate the estate’s tax liabilities to avoid errors and ensure compliance.
4. Missing Out on Identifying All Assets
Overlooking assets, particularly in complex estates, can lead to missed opportunities to pay debts and claims, leaving executors at risk.
How to avoid it: Thoroughly investigate all potential assets, including foreign holdings or digital assets, to ensure nothing is overlooked.
5. Distributing Assets Too Early
Executors sometimes distribute assets before ensuring that all debts, taxes, and liabilities have been cleared, which can lead to complications later on.
How to avoid it: Advise executors to wait until all debts and taxes are settled and the estate is fully administered before distributing any assets.
By understanding and addressing these common mistakes, solicitors can help executors avoid costly errors and ensure the estate is handled efficiently. Family Wise can assist with estate research, beneficiary tracing, and financial searches, offering professional support at every stage of estate administration.
If you need help managing estate administration, contact Family Wise today to see how we can assist.
