Five Surprising Facts About Estate Administrations

1.  You are not required to pay estate administration expenses out-of-pocket. You can be reimbursed by the estate for any out-of-pocket expenses you incur.

In most states, individuals are first in line to be repaid over any other creditors, even if your estate is insolvent. We can help you determine if/how creditors are paid.

2.  It is not always necessary to hire a lawyer for estate administration.

Estate lawyers are generally only essential when dealing with an extremely wealthy decedent that requires post-mortem tax planning, instances where the Will or Trust is not clear and requires court interpretation, or conflict among estate beneficiaries. We can help you with everything else.

3.  You can get paid for your service as an Executor or Personal Representative.

Executors and Personal Representatives are usually entitled to compensation. This executor fee is usually around 3.5% of the total estate plus a percentage of the income generated by the estate for each year that you work on it. We’ll help you determine the appropriate amount to pay yourself from the estate.

4.  When someone dies, they still need to file income taxes.

You are still required to file an income tax return for the deceased for the year they died, as well as income tax returns for the estate if it generates income. We’ll help guide you through the process of filing taxes on behalf of the deceased.

5.  The Executor or Personal Representative does not have to pay all of the decedent’s bills.

Executors and Personal Representatives are often sent phony bills. We’ll help you determine which expenses are real and which are fake.