Estate administration refers to the process of probating the estate of a decedent, which generally includes collecting, inventorying and appraising assets; gathering and paying debts; filing and paying estate taxes; and distributing any remaining assets to beneficiaries. An experienced Raleigh probate and estate administration attorney can help simplify this complicated process. If you need help in the administration of an estate, contact Evan Lohr at (919)348-9211 or at email@example.com.
The estate is the total amount of property that is owned by the decedent at his or her death (excluding real property unless it is necessary to pay creditors) and that has not already been set up to transfer automatically (such as transfer by joint tenancy or payment to a named beneficiary of an insurance policy). If there is a will, the clerk of court will determine if the will is valid and then oversee the administration of the estate by the executor (the person appointed in the will by the decedent to oversee the estate). If there is no will or the will is determined to be invalid, the clerk of court will appoint an administrator and the decedent’s property will be distributed according to North Carolina’s intestacy statute.
The executor is the person named by the decedent in the will to administer the estate. The executor has many important functions to complete, including:
Gathering and inventorying all assets of the estate
Appraising the assets
Collecting any payments or debts owed to the estate
Paying any valid debts owed by the estate
Filing and paying local, state and federal taxes
Distributing assets to the beneficiaries according to the will or state law
The executor owes fiduciary duties to anyone who has an interest in the estate. This means that the executor owes a duty of loyalty and must act in the best interests of the estate. For example, if the executor mismanages estate assets and causes the estate to lose value, he or she can be held liable for these actions and may have to repay the estate the amount of the lost value.
Preserving Estate Assets
An important but sometimes neglected responsibility in administering an estate is to look for opportunities to preserve assets for distribution. Reducing estate taxes is one way that an estate can retain more of its wealth for the decedent’s heirs. Some of the ways to accomplish this are:
Consider whether administration expenses and casualty losses should be reported on the estate tax return or on the estate’s income tax return
Consider whether there are income tax savings opportunities on the decedent’s final return (such as whether or not a joint income tax return should be filed with the surviving spouse)
Consider whether assets should be valued at the date of the decedent’s death or six months later (or, if assets have been distributed prior to six months after the decedent’s death, the date of the disposition of the assets)
Probate and Non-Probate Assets
Probate assets are subject to court administration. Probate can be an expensive and long process, and beneficiaries may have to wait anywhere from one to two years to receive the property left to them in the will. Probate assets include assets owned only by the decedent that do not have a named beneficiary.
Non-probate assets do not have to go through probate. These assets are typically distributed more quickly to the appropriate beneficiaries since a probate proceeding is not required. Non-probate assets generally include:
Property owned in joint tenancy with right of survivorship or by tenancy by the entirety
Payment on Death (POD) bank accounts
Transfer on Death (TOD) securities
Life insurance policies that designate a beneficiary other than the decedent’s estate
IRAs, 401(k) accounts, and other retirement plans that name a beneficiary other than the decedent’s estate
Speak to a Probate Lawyer
Guiding an estate through the probate process and effectively administering that estate requires a thorough understanding of North Carolina probate procedure and tax laws. If you need assistance administering an estate, contact Evan Lohr at (919)348-9211 or firstname.lastname@example.org.
Many potential clients with whom I speak believe that the person who has legal title to a piece of real property has an interest that is unlikely to be successfully challenged. In many cases, however, this is far from the truth. There are several types of situations in which a person who has been wrongfully deprived of title to property can regain it or be entitled to money damages for their loss. One of the most common situations is when a person provides funds for the purchase of property and title to that property is taken in another person’s name.
A resulting trust arises “when a person becomes invested with the title to real property under circumstances which in equity obligate him to hold the title and to exercise his ownership for the benefit of another. A trust of this sort does not arise from or depend on any agreement between the parties. It results from the fact that one person’s money has been invested in land and the conveyance taken in the name of another.” Teachey v. Gurley, 214 N.C. 288, 292, 199 S.E. 83, 86-87 (1938).784*784 The trust is created in order to effectuate what the law presumes to have been the intention of the parties in these circumstances—that the person to whom the land was conveyed hold it as trustee for the person who supplied the purchase money. Waddell v. Carson, 245 N.C. 669, 97 S.E.2d 222 (1957).
The classic example of a resulting trust is the purchase-money resulting trust. In such a situation, when one person provides the funds to purchase property, title to which is taken in the another person’s name, a resulting trust commensurate with his interest arises in favor of the one furnishing the funds. There are two possible ways to form a resulting trust based on the time at which consideration is paid. Either the consideration is paid before or at the time legal title passes, or it is paid after such time pursuant to an earlier agreement between the parties.
Evan Lohr is a North Carolina estate dispute attorney and has successfully represented individuals pursuing resulting trust claims. He can be reached at (919) 348-9211 or email@example.com.