Estate administration isn't the simplest task, and if you're new to it, it can seem overwhelming. The good news is that you can work side-by-side with an attorney, so you know that you're making the right choices to carry out your loved one's wishes.
As the executor of an estate, you have the responsibility of paying off debts, taking care of the distribution of assets for the estate and other essential tasks. There are a few mistakes that you should avoid making since they could negatively impact the estate on the whole.
What's a significant mistake to avoid?
One of the most serious mistakes is making distributions too early. If you begin to make distributions to the beneficiaries before you pay taxes, pay off debts or take care of other estate processes, you could end up with trouble on your hands. These early distributions could end up being "at-risk distributions," which you'd be personally liable for in the case of mistakes.
Another mistake some people make is failing to advertise the estate. You may need to notify creditors, the Internal Revenue Service (IRS) and others that you're the executor and that the decedent has passed. Doing so gives them a chance to reach out to obtain past-due debts and taxes. Failing to do so may create liability if they later try to seek out compensation from the estate.
As you can see, there are a few major issues that can take place if you're not careful. Working with the right help can make sure you make good decisions when distributing an estate.