-- Estate Planning Attorney Michael Smith has revealed the warning signs a trustee or executor should spot when they become immersed in managing a person’s estate.
For more information, please visit https://smithbarid.com
The founder and managing partner of Smith Barid, LLC in Georgia, said an estate manager had to balance the demands of ensuring an estate is handled responsibly against the pressure and grief of the late person’s family.
Smith said that failing to adequately communicate with beneficiaries and the family at large could invite unnecessary arguments, rising frustrations, and even litigation.
He elaborated: “A will is not a secret to be held by the estate manager. Unless documents state otherwise, beneficiaries requesting a copy of the will should receive the estate plan.”
Failing to handle tax debts or liabilities is another area where estate managers can face problems. He added: “Some tax issues will arise, such as filing the person’s last income tax return. Debts negotiated less than the original amount owed could trigger a tax liability. Generally, this is not an issue, but you should confirm with a creditor what their intentions are with regard to filing a 1099-C.”
He advised estate managers to seek legal advice and draw up a checklist of the areas they needed to cover to ensure a seamless probate process for an estate.
Smith also cautioned against seeking shortcuts. This can either involve gifting before death, which can generate capital gains tax liabilities, or distributing assets after death but before creditors’ claims have been settled.
He said: “Debts need to be paid first and then beneficiaries. Failing that, the personal representative could have personal liability if insufficient money is left to meet those taxes and debts.”
To avoid issues, a personal representative should be diligent in meeting deadlines, communicate about key events, and be transparent in the accounting of the estate.
Smith concluded: “A personal representative should seek professional advice from an estate planning attorney if they believe they are failing in their duties.”
“Simply guessing their way through the process, or not clearly understanding either their responsibilities or the process, could cause further grief and turmoil for the family concerned.”
Source: http://RecommendedExperts.biz
Contact Info:
Name: Michael Smith
Email: Send Email
Organization: Smith Barid, LLC
Address: 7393 Hodgson Memorial Dr #202, Savannah, GA 31406, United States
Phone: (912) 352-3999
Website: https://smithbarid.com
Release ID: 89174851
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