Estate Administration is rarely a straightforward responsibility. Problems can arise at every stage — and as the Estate Administrator, you are responsible for handling each one for the benefit of the estate and its beneficiaries. The experienced estate attorneys at Promise Law have guided many families through this process in Virginia. Here are some of the most common risks and challenges of estate administration.
What is Estate Administration?
“Estate administration is the process by which an individual’s lifetime financial affairs are wound up and their property and assets are distributed after they die.” Each state has its own laws that govern these affairs. In Virginia, the primary governing statute is Title 64.2 Wills, Trusts, and Fiduciaries.
Two of the most helpful guides for Virginia estate administrators are:
- Virginia Bar Association Guide to the Administration of Decedents’ Estates in Virginia
- Probate in Virginia Administration of Estates by the Virginia Court Clerks’ Association
The duties of estate administration include locating the Will and verifying its status; submitting the Will to the court; locating and notifying beneficiaries; establishing the current value of assets; reviewing outstanding taxes and debts; distributing assets according to the Will; and ultimately, closing the estate. Each of these duties carries risk. The most common challenges are reviewed below.
Common Risks and Challenges Estate Administrator Face
- Locating and Verifying the Decedent’s Will – If the location of the Will is unknown, or if the family is unaware one exists, this can create serious problems. Dying intestate, or without a Will, leaves the administration of the estate up to the court, which may appoint someone the family or the decedent would not have chosen. Even when a Will is found, it may be outdated, failing to account for new marriages, divorces, children, or assets acquired or transferred after it was drafted.
- Locating Beneficiaries – When there is no Will or known family, tracking down beneficiaries can be an enormous challenge — and even with a Will that names them, locating beneficiaries sometimes requires a professional investigator. The estate administrator can be held personally responsible if assets are distributed to the wrong people.
- Identifying, Securing, and Valuing Assets – Estate assets are often more complicated than a few bank accounts, a home, and a vehicle or two. Family members may unearth stock certificates or dividend records for assets not mentioned in the Will. Assets can also surface after distribution has already been made. Foreign or out-of-state assets add another layer of complexity and can be extremely difficult to secure and control. Mishandling assets is one of the most serious risks for estate administrators.
- Verifying and Paying Debts – Creditors are the first beneficiaries of an estate and their claims must be satisfied before anything is distributed to named beneficiaries. Some debts may be invalid, outside the statute of limitations, or otherwise not legally owed. Others, including taxes the decedent should have filed before death, must be made current. An estate administrator can be held personally responsible for debts that are missed or paid when they should not have been.
- Distribution of Assets – Distributing assets is not simply a matter of dividing what remains equally among beneficiaries. The Will may contain specific instructions, special bequests to individuals or organizations, or provisions requiring that certain assets be placed in trust for minor or financially vulnerable beneficiaries. Errors or mismanagement in distribution can create personal liability for the estate administrator.
How Can a Virginia Estate Attorney Help Me?
Contacting a Virginia Estate Attorney early — ideally before you take any significant action — is one of the wisest steps an estate administrator can take. An experienced estate attorney can help you understand your duties under Virginia law, locate assets and beneficiaries, verify and address debts, resolve tax issues, work with the Commissioner of Accounts, and avoid the “quicksand” mistakes that create unnecessary stress and personal liability.
If you have been appointed as an estate administrator in Virginia and you want to understand your options, start by downloading Promise Law’s free “Guidance After the Death of a Loved One” booklet. It is a step-by-step resource covering the days, weeks, and months following a death.
When you are ready for personal help, contact Promise Law in Newport News at 757.866.3730 to talk about whether a Probate & Estate Administration consultation is the right next step for your situation.
