Advice from Someone Administering an Estate

Dan McKenzie • Nov 24, 2023

Administering an estate can be daunting, especially if you’re doing it for the first time. Here are some pieces of advice many of our clients say they would give to someone just starting this process.


1. Establish Trust with Beneficiaries Early and Often

The first step is to establish communication with the beneficiaries as quickly as possible. Earning their trust early on will ensure a smooth process moving forward. If you’re administering the estate of a loved one, the beneficiaries might be grieving and anxious about what will happen next. Communicating openly and honestly can help alleviate their concerns and build trust.


You will want to keep communicating regularly and consistently throughout the process to maintain that trust. Remember that administering an estate can be more complex than many realize. As the executor, the beneficiaries can potentially sue you for mistakes that cost them money, even if those mistakes were innocent and made with the best intentions. This is less likely to happen when you have established a pattern of open, honest communication that demonstrates your good faith.


2. Set Aside Personal Feelings

In many situations, the estate executor is closely related to both the decedent and the beneficiaries. You will bring a long history of thoughts and opinions into the job if that describes you. Your job as the executor, however, is to follow the instructions given in the decedent’s will or trust, not to make your judgments about what was a good idea and what was not. Setting aside your feelings about the instructions or the beneficiaries is essential. You might disagree with how the assets are distributed, but it’s not your place to change that. You must carry out the decedent’s wishes as outlined in the will or trust or according to state law if there is no governing document.


3. Be Conservative with Promises to Beneficiaries

Be conservative with promises to the beneficiaries about when and what they will receive. Both you and the heirs need to understand that your job is not just to hand out money to the beneficiaries but also to identify and resolve creditor claims against the estate. You also need to ensure that you correctly handle the taxes. Both of these tasks can take longer than people expect. A beneficiary might expect to receive their inheritance quickly, but it could take longer if outstanding debts or taxes must be paid.


The most challenging situation is when a beneficiary is in a difficult financial situation and badly needs the money. A good executor understands their competing responsibilities, carefully evaluates all their options, and balances their legal obligations with compassion for the beneficiary's situation.


4. Treat the Estate Like a Business

Treat the estate like a business. This means keeping good financial records, communicating regularly and candidly with all the stakeholders, setting your emotions aside to make the best decisions for the estate's good, and hiring good people to help you complete the tasks you don’t know how to do on your own. For example, you might need to hire an accountant to help with the estate’s taxes or a lawyer to help with legal issues.


5. Seek Professional Help

Don’t hesitate to seek professional help if you need it. Administering an estate can be complex, and admitting when you’re out of your depth is okay. For example, you might need to hire a business valuation expert if the estate includes a business. If the estate has substantial personal property, you might need to hire an estate sales expert or organizational guru.


Remember, your role as an executor is serious, and it’s essential to carry out your duties with diligence and integrity. By following these pieces of advice, you can help ensure a smooth and efficient administration process.


See this article for additional thoughts and advice from someone who has been through this process before.


what next?

If you have been nominated to administer an estate and think you might need assistance, you can:


  1. Call us at 720-821-7604 to schedule an "Attorney Evaluation Session," to determine whether our firm would be a good fit for your needs. Or fill out our contact form to have us call you.
  2. Visit our estate administration page to learn how proactively thinking through your estate plan can protect you and your family, minimize hassle, lower the chance of family discord, and minimize or eliminate taxes.
  3. Learn more by reading our blog or watching our videos.

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