What is Estate Administration?
Estate administration refers to how an individual’s estate (e.g., assets and liabilities) are handled after they pass away.
In this post, I’m going to explain what estate administration is, how probate court factors in, and why it’s important to hire a qualified attorney to help you navigate this process.
First, let’s cover the basics.
An Overview of Estate Administration
When someone passes away, all of their assets, debts, and other obligations must be accounted for and settled up. Generally speaking, a person’s last will and testament declare how assets are distributed to their next of kin, or other designees.
The probate court oversees this process to ensure the estate is transferred in accordance with the will (if one exists) and according to the law. Probate also ensures that all financial obligations are met and that estate taxes are paid, if applicable.
So, What is Probate Court?
If you’ve never heard of probate court before, you’re not alone. Many people have never heard of it until a loved one passes away.
In Connecticut, and in most states, probate court oversees how a deceased person’s estate is legally transferred.
Here’s how the probate court process works in Connecticut:
Probate court appoints an executor or administrator to the estate. Usually, the executor or administrator is defined in the deceased person’s will. If a will isn’t available, the court assigns the executor (usually a spouse, or next of kin).
Your attorney can serve as the estate administrator. If you hire an attorney, this is where they would step in and act as the administrator to the estate. Typically, the executor of the estate appoints the attorney of their choice.
Estate administrator files Form CT-706/709. This form is legally required by the Connecticut Department of Revenue. All of the estate’s assets must be accounted for on this form to determine the estate’s value.
Estate tax is calculated. For the year 2020, CT-based estates valued at under $5.1 million are not required to pay estate tax. If the estate is worth over $11.5 million, Federal Form 706 must also be filed.
Probate court oversees estate transfer. When the process runs smoothly, the estate’s assets are transferred to the descendants according to the will or estate plan. If a will isn’t available, the probate court decides how assets are distributed, according to the law.
Probate court oversees disputes. If a family member, spouse, or creditor makes a claim toward the estate, the court will make its best effort to resolve the matter according to the law.
Estate is settled. Once the probate court is satisfied that all assets, debts, and claims are settled, the estate is closed. Keep in mind that if there’s a dispute to the estate, the process can drag on for much longer.
Why You Should Hire an Estate Administration Attorney
With a proper estate administration plan in place, your assets are protected before someone passes away — putting you many steps ahead in the probate process.
Without an estate plan, it’s up to the courts to determine who the executor will be, and how the estate’s assets are passed along to descendants. This might not be in your best interest.
Furthermore, if the deceased person owes a massive medical bill from their end of life or hospice care, this can wipe out your inheritance without proper planning. You may also be personally liable for other debts or obligations if all of the estate’s liabilities aren’t handled properly.
Your Connecticut Estate Administration Attorneys
Nedder & Associates has helped thousands of families navigate the estate administration and probate process.
We’ll ensure that your loved one’s assets and estate are passed along with everyone’s best interests in mind. We’ll also make sure that the estate satisfies any legal, tax, or debt obligations along the way.
Contact us today to learn how we can help your family’s estate planning needs.
Connecticut Estate Administration Resources
Form CT-706/709 — all CT estate executors/administrations must file this form
Federal Form 706 — for estates valued at over $11.5 million in 2020
