estate administration
Whether it’s a living trust, a last will and testament, or an intestate estate, “administration” is the process of addressing final expenses and transferring assets at a loved one’s death. While all administrations follow the same general pattern below, there can be additional steps, including a visit to probate court, depending on the type (i.e. living trust, last will and testament, or intestacy). It is best to retain a knowledgeable attorney to assist with an administration.
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Phases of Trust or estate Administration
- Fiduciary Appointment. First, the person in charge, known as a “fiduciary” is appointed. This person is a trustee for a living trust, an executor or executrix in a last will and testament, or an administrator or administratrix in an intestate estate. A probate court judge must appoint the fiduciary unless it is a living trust administration.
- Marshal Assets. The fiduciary must gather the location and value of all estate assets.
- Notify TennCare. The fiduciary must notify the Division of TennCare (Tennessee’s version of Medicaid) of the decedent’s passing and obtain a release from them before closing the estate.
- Notify Heirs and Beneficiaries. Next, the fiduciary must notify the heirs and/or beneficiaries of the administration.
- Pay Final Taxes. The fiduciary must be sure that all applicable state and federal taxes are paid before distributing the assets. While Tennessee does not currently have an inheritance tax, the estate may be subject to federal estate tax.
- Address Creditor Issues. The fiduciary must resolve any outstanding creditor issues. This may include publishing notice of the administration in the local newspaper. If any creditors file claims in probate court, the fiduciary must address them.
- Distribute Remaining Assets. The fiduciary must then distribute the remaining assets to the heirs or beneficiaries according to the governing document (trust or last will and testament) or the intestate succession laws of Tennessee.
- Close Estate. Finally, the fiduciary is relieved of their role and may close the estate.