Estate administrators experience a variety of challenges as they carry out their responsibilities. As an administrator, you should understand the potential disputes that result from the probate process.
Recognizing the most common sources of probate challenges may help you prepare in case of any disputes while you carry out your duties.
Beneficiary issues
Sometimes, a beneficiary feels neglected, overlooked or unfairly treated in the will. When there are questions about the fair distribution of the estate, one family member might file a dispute for reconsideration. This prolongs the probate process. Discuss the importance of clarity with your loved one to reduce this risk.
Creditor claims
Another potential dispute you might experience as you manage the probate process is an unexpected creditor claim. When creditors come forward with claims against the estate, take time to validate the balance first. Remember that you cannot confirm the account with the deceased, so the more information you can get from the creditor, the better.
Tax challenges
The probate process often includes dealing with tax liabilities, including final income tax filings as well as estate taxes. Many administrators struggle with tax liability management, especially with complex financial situations and high-value assets.
Probate administration takes time and requires a commitment to see it through. You not only have asset distribution and estate settlement to handle, but also the court’s probate process to navigate. Understand the responsibility when you take on the role of administrator. The more you know in advance, the easier it is to prepare for potential complications.
