Administering an Estate | Inheritance Recovery Guidance

One of the most common questions in this area of law is regarding the financial aspects of an estate. Typically this includes inquiries regarding the steps to obtaining financial information and the time it takes for assets to be disbursed. Administering an estate is an extensive process, and it is vital to understand its intricacies to best plan and time for disbursement.

The Trustee is in charge of all aspects of the Trust, including the release of financial information and, eventually, the disbursement of assets. Once a Trustee notifies all beneficiaries of the Trust, they now bear the responsibility of collecting and obtaining financial information. This, however, does not mean they are not required to communicate with the beneficiaries throughout this process; A Trustee owes all beneficiaries full transparency of the financial handling. It is part of a Trustee’s fiduciary duties to provide all beneficiaries with financial documentation and a formal Trust accounting when able to do so. Unfortunately, this is not always the case. Trustees who mishandle an estate may prolong the release of this information or deny a beneficiary’s request to an accounting. In these situations, beneficiaries can request a court-ordered trust accounting and seek legal counsel if the situation exacerbates.

The type of assets in the estate will greatly affect the duration of time between execution to disbursement. In general, for a Trustee to be permitted access to any assets, they must first prove their legal authority over the estate. Liquidated assets like money, bank accounts, IRA accounts, etc., require documentation to be presented to the relevant financial institutions. Real property, however, requires additional steps before the transfer can be completed. Like liquidated assets, a Trustee needs to establish legal rights over the property and, for such reason, must file change of ownership documents with the county recorder’s office. Once legal authority is established, the Trustee can take any necessary precautions to ensure the properties are handled as instructed in the Trust. Essentially this means the Trustee can now evict any tenants from the property if the home is meant to be sold, have the property formally appraised, and make any necessary repairs or remodeling. The goal of the Trustee is to leave the Trust in its best financial standing, which can be done by doing what is necessary to increase property value. This, however, can lengthen the time it takes for beneficiaries to receive their portion of the estate. Prepping property for sale and transfer is a lengthy process and, on average can take months. In situations where the assets are more complex, like the sale or transfer of businesses, it may take longer.

Overall, the steps to valuating assets are intricate and timely, and beneficiaries should expect the process to take a year, if not longer. If, however, you believe that the process is being delayed and assets are being mishandled, please reach out to the Inheritance Recovery Attorneys to see what you can do. Our firm offers free consultations and specializes in Trust and Will litigation. We are here to help you protect your inheritance and ensure your loved one’s wishes are fulfilled honestly.