Top Mistakes Fiduciaries Make (Liability Landmines)

The common (but not small) mistakes:

• Not marshaling all of the assets.
• Not determining all of the debt.
• Not disposing of all of the debt.
• Not paying the expenses on time, including the estate taxes owed by the decedent’s estate.
• Making distributions prior to the seven (7) months.
• Paying the decedent’s creditors without confirming the claim(s).
• Not heeding the concerns or needs of the beneficiary(ies) of the estate.

The subtle mistakes:

• Not investing the assets of the decedent’s estate properly.
• Not continuing or winding down the decedent’s business.
• Taking too long to administer the decedent’s estate.

The BIG mistakes:

• Wasting (or acting negligently with) the assets of the estate.
• Committing fraud.
• Self-dealing with the assets of the estate.
• Embezzling the assets of the estate.

When navigating through estate and trust administration, the good fiduciary must be aware of his or her role, as well as his or her duties to the decedent, the decedent’s estate, and the beneficiaries of the decedent’s estate. Estate, Will, and Trust conflicts will arise even in the best of estate plans. A fiduciary should not compound the problem by creating further conflict, or being the reason for the conflict.

If you would like to discuss your role as fiduciary of the estate, or need assistance in representing an estate, contact us.