While you must be mindful of your firm’s policies and procedures and the regulatory requirements associated with estate administration, at the minimum advisors can do several things: The resulting litigation left permanent scars on the family, delay in distribution and management of estate assets, and diversion of estate funds to pay legal costs.Īdvisors can take a proactive approach in the development of communication protocols, supporting the executor. When I was engaged to help, it was obvious that the anger the siblings aimed at the executor was less about the allegations and more about a lack of communication and consultation. The siblings alleged, despite a lack of evidence, that the executor was “on the take” with the realtor chosen to sell their mother’s house. I recall a situation when an executor, who was a beneficiary and had siblings who were also beneficiaries, was accused of receiving estate-related kickbacks on the disposition of estate assets. Unfortunately, executors don’t help their cause when they fail to consistently communicate with beneficiaries, explain estate-related milestones and objectives, and anticipate and resolve perceived or actual conflicts of interest. My own experience is that beneficiaries may be predisposed to hostility toward an executor because of family dynamics, anger and frustration with the deceased, and general mistrust of the estate administration process. With a modest estate potentially taking a minimum of 12 to 18 months to settle, angst and resentment have plenty of time to fester. Thus, communication protocols should address these themes. They outline that beneficiaries complain about delays in distribution of estate assets lack of formal accounting perceived mismanagement of estate investments, property and funds or unfair treatment. Best practice guidelines for estate administration highlight the need for communication between an executor and beneficiaries but rarely describe an effective approach. While the legal obligations are clear, communication protocols aren’t. distributing assets to beneficiaries in accordance with the will.
determining and paying estate-related debts and taxes.identifying, valuing and safeguarding assets.
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