The Essentials of Avoiding Common Trust and Estate Mistakes
As an executor, administrator, or trustee, you must act responsibly in your role. Know how to handle property sale agreements, pension plans and IRAs, and trust payments. Interact judiciously with an estate’s heirs and beneficiaries, and meet probate court and tax deadlines. Exercise sound fiduciary judgment and avoid unsanctioned shortcuts.
Write a New Property Sale Agreement for an Estate
If you are administering an estate in which the decedent was in the middle of a property transfer at the time of death, cancel the old purchase and sale agreement. Then write a new agreement in which the [more…]
Roll an Estate’s Pension Plan or IRA to the Heirs
If you are administering an estate with a pension plan or IRA, roll the account to the estate heirs. Do not take a lump sum distribution on the pension plan or IRA for the estate, because the estate will [more…]
Handle an Estate’s Heirs, Legatees, and Beneficiaries Wisely
As the executor of an estate, interact with the estate’s heirs, legatees, and beneficiaries wisely and with care. Be sure to divide the estate’s personal property fairly among the heirs. Also be sure to [more…]
Meet Probate Court and Tax Deadlines for Estates and Trusts
You must meet all probate court deadlines to avoid being removed as executor or trustee and to avoid fines or even jail sentences. File income tax returns, Form 1041, and estate tax returns, Form 706, [more…]
Exercise Good Fiduciary Judgment for an Estate or Trust
As the executor or trustee, it is crucial that you use good fiduciary judgment. Seek sound professional advice, invest the estate or trust assets wisely, and pay beneficiaries and all bills on time. Be [more…]
Don’t Take Unsanctioned Shortcuts for an Estate or Trust
Treat your job as an executor, administrator, or trustee with care and act reasonably and responsibly. Realize that this job is a major, and often time-consuming, commitment to fulfill the wishes of the [more…]
Make Proper Payments from the Trust Income and Principal
As a trustee, you must know when to make payments from the principal of the trust and when to make payments from the income of the trust. For your trustee fees, create an equitable formula so that a percentage [more…]
