What is Probate and Trust Administration?
Trust administration involves the managing and overseeing of a trust by a trustee. The trustee must ensure the terms of the trust are properly executed, including ensuring beneficiaries receive their intended benefits while all legal and tax requirements are adhered to. Trust administration can go on for many years if the person who set up the trust has provisions that allow beneficiaries or charities to receive benefits incrementally.
Probate is a process whereby a decedent’s assets go through a court-supervised estate administration (the court is not involved in a trust administration). The administrator of an estate must gather, manage, and distribute the decedent’s assets as per the will—or according to NC laws if there is no will. The Clerk of the Court reviews a will, and it must be approved before the probate can move forward.
In addition to gathering and identifying all assets belonging to the decedent, the executor or administrator of an estate must also notify creditors, determine which debts must be paid, file income tax returns, and file reports with the Clerk of the Court before dividing all remaining assets to beneficiaries. Probate and estate administration usually takes about a year to complete. Both trust and probate administration can benefit significantly from having an experienced NC Planning estate attorney guiding the process.
Case Illustration of a Designated Executor
Jim has been designated as the executor of his brother Walter’s estate. At the time Walter chose Jim, they both lived in Wilmington. Jim has since moved out of state, so he is struggling to find the necessary time to spend in Wilmington, probating his brother’s estate, and handling all the necessary tasks. Although Jim considered passing the job of executor on to another person because of the distance he must travel, he wants to honor his brother’s wishes—and he suspects that if he doesn’t handle the job himself, Walter’s family members will quarrel over the estate.
Jim has gathered and organized all applicable documents and submitted the will to the local probate court in Wilmington. He has alerted all necessary heirs, creditors, and agencies of Walter’s death, and has inventoried all assets associated with Walter’s estate. At this point, however, Jim has spent far too much time away from his job and his own family, and he is growing weary of dealing with Walter’s family members who all want their inheritances “now.” Jim contacts a Wilmington probate and estate administration attorney from NC Planning to discuss his options.
After one meeting, Jim is feeling much more positive about his duties as executor. He has hired NC Planning to ensure all probate paperwork has been properly filed and that once probate is complete, all heirs will receive their designated inheritances. Having an experienced probate and administration attorney who is familiar with probate and trust administration laws and rules gives Jim peace of mind, knowing the process will be taken care of in a professional, timely manner.
Jim no longer worries about traveling back and forth to attend necessary court hearings, plus now that there is a “neutral” party handling the probate, Walter’s family members are no longer constantly calling Jim about their inheritances. This allows Jim to maintain good family relationships while honoring Walter’s wishes. Once a Wilmington probate and estate administration attorney is involved, there is a reduced chance of contests or challenges to the will or trust, and family members are more likely to believe the estate is being properly administered.
What Do Estate Administration Attorneys Do?
Estate administration attorneys may have prepared the estate in question and were asked by the decedent before his or her death to administer the estate. In other cases, a family member may have been named as executor but may have neither the time nor the necessary skills and knowledge to carry out the duties of executor.
In this case, the executor may contact an estate administration attorney who will ensure the administration of the estate carefully follows NC laws. In particular, larger estates can become very burdensome for an executor who has no prior experience or knowledge of the process. An estate administration attorney handles the probate and estate administration process from start to finish, including:
- Preparing all court documents
- Filing tax returns on behalf of the estate
- Inventorying all assets
- Transferring or selling real estate when necessary
- Liquidating financial accounts
- Handling impatient beneficiaries
- Dealing with creditors
- Preparing a comprehensive accounting of the estate and probate process
The process can be lengthy, so the sooner an estate administration attorney is contacted after the funeral and burial, the better it will be for all those involved. A Wilmington probate and estate administration attorney from NC Planning can offer knowledgeable advice regarding dealing with life insurance, joint accounts, non-probate assets, IRAs, and much more before beginning the process of preparing and filing the necessary court documents.
For a complex, high-net-worth estate or when there are other complicating factors like beneficiary disputes, having an estate administration attorney can be an invaluable resource during this difficult time. Following the death of your loved one, managing the seemingly endless executor tasks can be extremely challenging. When you have knowledgeable Wilmington probate and estate administration attorneys from NC Planning by your side, these challenges are significantly reduced.
What is the Estate Administration Process?
The process for administering a North Carolina estate will differ somewhat for each estate, but the basic process includes:
- The decedent’s will must be filed with the Clerk of the court in the last county the decedent resided in.
- The person named in the will as executor must make a request to the court to be appointed as executor of the estate.
- Letters will be issued to the executor or administrator, giving them the legal right to handle the estate.
- All assets associated with the estate must be inventoried, and this inventory list must be filed with the probate court.
- All banking accounts associated with the estate are usually consolidated into one account unless the estate is very large. It can simplify the job of the administrator or executor to have only one account when paying bills and making distributions to the beneficiaries. An estate account can be established with the help of a Wilmington probate and estate attorney from NC Planning.
- Valuations and appraisals must be obtained for higher-value assets.
- The decedent’s personal property is generally distributed before the money, in accordance with the directions in the will.
- A Notice to Creditors must be published in the local newspaper. This notice will contain a date by which creditors must make their claim against the estate.
- All bills associated with the decedent’s estate must be paid.
- Final tax returns must be filed on behalf of the decedent. Estates that have more than $5 million in assets definitely require professional advice regarding estate taxes—and even smaller estates can benefit from such advice.
- Assets are distributed to the named beneficiaries; the executor or administrator will want to retain a reserve for any unanticipated claims as well as for the costs associated with closing out the estate.
- A final account must be filed with the Clerk of the Court that shows any additional assets and income received since the original inventory, along with payments made to creditors, and distributions to beneficiaries. Receipts from beneficiaries must be provided for amounts distributed in accordance with the decedent’s will.
- Once the Clerk’s Office approves the final account, the executor is discharged from further duty and responsibility relating to the estate.
Choosing the Best Probate and Estate Administration Attorney to Secure Your Legacy
Choosing the right Wilmington probate and estate administration attorney is a crucial step in securing your legacy. You can choose your estate administration attorney as a part of the estate planning process. This means that once you have passed, your loved ones will not have to worry about finding an attorney to administer your estate. When you are choosing an estate planning and estate administration attorney, consider the following:
- Does the firm offer outstanding client care? Client care is easy to talk about, but consistently delivering exceptional client care is what the NC Planning attorneys live and breathe.
- What does the firm stand for? Our firm stands for open communication, accountability, compassion, and responsiveness. We constantly strive to improve our service to clients, working to zealously represent each and every client in the best way possible.
- Do you feel comfortable with the attorneys and staff? At NC Planning we take a friendly, compassionate, family-like approach with our clients.
How NC Planning Will Help You Plan for the Road Ahead
When you choose a Wilmington probate and estate administration attorney from NC Planning, you have taken an important first step in ensuring your loved one’s estate is administered properly and as quickly as possible. The NC Planning legal team has a deep understanding of how to minimize tax burdens, protect assets, and limit exposure to creditors when helping you plan your estate—and when administering your estate. NC Planning has offices in Wilmington, Raleigh, and Cary for your convenience. Contact us today to schedule a consultation with a Wilmington probate and estate administration attorney from NC Planning.