Estate administration is a complicated and lengthy process. The personal representative of an estate has to locate and review estate planning documents. They need to initiate probate proceedings by filing paperwork with the Georgia probate courts. During probate, they have many responsibilities.
They must communicate with beneficiaries and outside parties who may have an interest in an estate. They must handle the financial obligations of the decedent and preserve their resources before distributing them to beneficiaries.
Unfortunately, outside claims against an estate often take priority over the rights of direct family members who may be heirs and beneficiaries named in an estate plan to inherit property. Under current probate statutes, numerous financial obligations take priority over inheritance rights beyond coverage for a single year of living expenses.
Probate expenses
Probate expenses may include the cost of legal representation for the personal representative and the cost of time in probate court. The cost of estate administration is a priority debt during probate proceedings. A personal representative usually needs to cover those probate costs before any other major financial obligations owed by the decedent.
Tax obligations
The personal representative of the estate may need to file a tax return and make a final income tax payment on behalf of the decedent. If the estate is worth millions of dollars, they may also need to handle estate tax obligations. If they liquidate or sell estate resources, the estate itself may have income tax responsibilities. Those taxes typically require payment before the distribution of property to beneficiaries.
Personal debts
Medical expenses from end-of-life care, credit card balances and even the remaining amount due on student loans may require payments using the resources in the estate. Typically, any creditors that make valid claims against estate resources receive payment before the final distribution of assets to beneficiaries of the estate.
Estate administration can lead to liability for a personal representative if they don’t handle obligations in the correct order or distribute property before handling financial obligations. As such, beneficiaries and representatives may benefit from learning more about the financial priorities of an estate during the probate process.