Delay of estate settlement results in extra-legal costs
Source: The Monterey Herald
you left the estate administration “alive” as a way of keeping the memory of your parents alive. While this is not completely uncommon, it can be risky…
This article by Monterey Trust Management‘s Liza Horvath makes a prudent and practical case for the expedient administration of an estate. Citing an example of an estate wherein a beneficiary himself died before the distribution of assets shows how things can get complicated. When things get complicated, especially in an estate, things can get expensive. Any probate attorney will cite many such examples, and reasons to be swift in your execution.
Ms. Horvath explains that delaying the distribution of an estate—while emotionally understandable—can create significant legal and financial complications. In this case, the parents’ assets were effectively vested in the three children at the time of the parents’ deaths in 2010. Because one brother later died, his share now legally belongs to his children, bringing new parties and legal requirements into the estate administration.
The delay may require court involvement to resolve the deceased brother’s estate, especially if he died without a trust. If he had no estate plan (or died intestate), probate is likely required, and the court may mandate posting a bond to protect beneficiaries. Bonds are costly but are commonly required when there is no trust or will waiving that requirement. Distribution of the brother’s share would then follow intestate succession laws, potentially involving both his spouse and children.
The response also warns trustees to ensure all tax filings for the parents or their trust are completed, as trustees can be personally liable for unpaid taxes. Additionally, required real estate notifications to local authorities must be addressed to avoid penalties. The overall advice is to work closely with an experienced estate attorney to resolve these issues properly, minimize risk, and protect all parties involved.
The moral of the story here being, “Get ‘er done”.