Assuming the role of executor comes with a great deal of responsibility. Not only do you have to manage the deceased's assets and liabilities, but you also have to adhere to state and federal laws. One of the most important duties of an executor is distributing the estate's assets to the beneficiaries. This process is not always simple, and there are a few issues that could arise.
One issue that might arise is if there are multiple beneficiaries who are entitled to different percentages of the estate. The executor would then have to determine how to disburse the assets in a fair and equal manner. Another issue that could come up is if there are no clear instructions from the deceased on how to distribute their assets. In this case, the executor would have to use their best judgment to make decisions on behalf of the deceased.
Video: What Issues Might Arise When Disbursing An Estate
Here are 10 issues that might arise when the time comes to disburse an estate:
- The executor may not have a clear understanding of the deceased's wishes regarding the distribution of assets.
- Family members or other beneficiaries may disagree about who should receive what from the estate.
- Taxes may claim a significant portion of the estate, leaving less for distribution to beneficiaries.
- Creditors may make claims against the estate, which could reduce the amount available for distribution.
- The probate process itself can be lengthy and expensive, eating into the value of the estate.
- The executor may be inexperienced or otherwise unable to handle the complexities of estate administration.
- Beneficiaries may live in different parts of the country or world, making distribution difficult to coordinate.
- Some assets may be difficult to value or divide, such as real estate or a family business.
- There may be disagreements about how to interpret the deceased's will or other estate documents.
- Emotions can run high during estate administration, which can make decision-making and communication more difficult.