When a person dies, it is often necessary to follow formal procedures in settling the estate. The process is called Estate Administration. Both state and federal law establish certain requirements that must be followed.

WHAT IS ESTATE ADMINISTRATION?

Administration of estates involves collection of assets, payment of obligations such as debts and expenses and death tax preparation (federal and state) and filing, and distribution of property to heirs and beneficiaries.

WHAT SHOULD BE DONE FIRST?

If a person dear to you has died, and you know that you have been named their personal representative in their will ("Executor") make sure that their home is secure and nothing is lost, taken, or destroyed. In Pennsylvania, other than a spouse, no one can enter a safe deposit box without arranging with the bank officials for an inventory to be made of the contents for the Pennsylvania Department of Revenue. Shortly after the funeral, an attorney should be contacted by the personal representative or heirs of the deceased to discuss the decedent's (the deceased person) financial matters and estate.

The attorney will provide advice, determine whether it will be necessary to probate the will or open an estate with the local county Register of Wills and explain what procedures will be required. If the decedent left a last will, the person named as executor should protect the original of it and give it to the attorney at the first meeting.

WHEN IS FORMAL ESTATE ADMINISTRATION REQUIRED?

When a person dies solely owning an interest in personal property worth more than $10,000 or real estate, an estate administration usually will be required. In any case, inheritance or income tax matters must be considered.

WHO ADMINSTERS AND ESTATE?

An estate is administered by a personal representative. If there is a will, the personal representative named to serve is called the "executor." If there is no will or if the executor cannot serve, the person who does serve is referred to as the "administrator." The Register of Wills makes the appointment from among family members qualified to serve. If all family members agree, they can each sign renunciations of their right to administer the estate and agree to the appointment of a person as administrator.

The personal representative works with an attorney in complying with necessary legal requirements under the laws of Pennsylvania, to administer the estate, prepare and file the necessary documents, pay and fees or taxes due, and make distributions of the estate assets to the heirs according to the will of the decedent, or if none, in accordance with the laws of Pennsylvania.

WHAT DOES A PERSONAL REPRESENTATIVE DO?

A personal representative is charged with the actual administration of an estate under Pennsylvania and federal law. A personal representative follows the directions of the decedent, if there is a will or follows the intestate distribution requirements if there is no will.

The representative also fathers information about the assets of the estate and the debts, notifies the beneficiaries under the will or the intestate heirs if there is no will, pays all debts and expenses as well as death taxes, and distributes the assets to the beneficiaries or heirs.

Often, a personal representative also becomes involved with final income tax matters or assists in the processing or distributing non-probate assets.

SHOULD I HAVE AN ATTORNEY ASSIST ME?

As a practical matter, it is very difficult for a non-lawyer to adhere to the required procedures in administering an estate without the assistance of an attorney. There are important deadlines which must be met, and each county has different procedures.

Although the personal representative selects the attorney for the estate, often the same attorney who prepared the will assists in post-mortem matters. However, this is not a requirement. Even if the lawyer who wrote the will for the decedent has possession of the original of the will, the personal representation has the right to ask that lawyer to give him or her original of the will, if the personal representative wishes to select a different attorney to work with.

WHAT HAPPENS DURING THE ADMINSTRATION?

At the beginning, all assets of the estate, including personal possessions and real estate, are inventoried and sometimes physically gathered. All of the beneficiaries (if there is a will) or heirs (if there is no will) are located. They are told that they were named in the will or have a legal right to receive an inheritance. Funeral expenses, debts, state and federal taxes are paid, and necessary tax returns files.

Sometimes administration may involve the short-term management of a business of stock in a corporation. There could also be sale of real estate, which was owned by the deceased.

At the conclusion of the administration period, a final accounting of all assets can be presented for approval to the county court or, in appropriate situations, to the beneficiaries for their informal approval and release. After approval, distribution of the balance of assets is accomplished. The majority of estate administrations in Pennsylvania are finalized with an informal agreement among the heirs, and thus the time frame from beginning to end, from offer of the will for probate until a final settlement and distribution of estate assets, may be less than 6 months.

WHAT FEES ARE PAID DURING ADMINISTRATION?

In addition to a probate fee and other filing costs, fees are paid to the attorney and to the personal representative for their work. These fees are paid out of the assets of the estate. Fee arrangements should be discussed during the first visit with the attorney who will be involved in the administration of the estate. There should be a written fee agreement between the lawyer and the personal representative for the estate, which spells out the fee arrangement.

WHAT IF I WANT TO CHANGE LAWYERS AFTER THE ESTATE ADMINISTRATION HAS BEGUN?

As with any legal services, the person who is using the services of the attorney is always entitled to change attorneys, if they are dissatisfied with those services. The personal representative may request that the attorney for the estate withdraw his or her appearance and that another attorney take over the administration of the estate. However, the personal representative should be mindful of the fee agreement he or she has signed, and if there is a fee issue, should discuss it with the new attorney whom he or she has retained.

WHAT IF I AM AN HEIR OF THE DECEASED AND I AM DISSATISFIED WITH THE ESTATE ADMINISTRATION?

Each heir of the deceased person, if they are entitled to a share of the estate under the will or intestate law of Pennsylvania, is entitled to question the administration of the estate by the personal representative or the attorney for the estate. For this purpose, such a dissatisfied heir must separately retain and pay for their own attorney; if they are successful in challenging the manner in which the estate is administered, the court may award them a portion of their fees or costs in doing so.

WHAT IF I WANT TO CHALLENGE THE WILL?

There are procedures for challenging a will which ash been offered for probate; these involve filing timely legal papers asserting the challenge on behalf of an heir or former heir, when they believe that either the signature on the will is not genuine or that the will was the produce of "undue influence" over the deceased, or that another will exists which invalidates the will which has been accepted for probate. Again, for this purpose, such a challenger must separately retain and pay for their own attorney; if they are successful in challenging the will, the court may award them a portion of their fees or costs in doing so.

It is very difficult to successfully challenge a will based solely upon the manner in which the decedent decided to distribute his or her estate, if the deceased was not incapacitated or under the influence of some "designing person." Contrary to popular belief, no relative of the decedent has a "right" to any of the decedent's estate, nor is it necessary for the will to leave $1.00 or another other sum of money to a relative or child the deceased wishes to disinherit. The exception to this rule is if a child of the decedent was born after the will was written, Pennsylvania requires that a provision be made for this "pretermitted" child in the administration and distribution of the estate.