Coming in a close second (26%) in the survey was; having sufficient legal or financial knowledge to complete the job of executor. Seldom does a first time executor have a good idea of the legal and financial requirements of the job. On traditional executor checklists there are approximately one hundred steps to be taken in the process of closing out an estate of moderate value. If the executor does not follow the protocol established by the Surrogate Court or if a mistake is made in managing the assets it could leave the executor open to a lawsuit.

Third on the survey(25%) is filing tax returns, this partly ties into financial knowledge but is an entirely separate part of the probate process.  If you are an individual who is not familiar with filling out sometimes complex tax forms, fulfilling your fiduciary duty as an executor can be problematic. If an an error is made in determining the value of the estate or the wrong box on an IRS tax form is checked, the executor is liable. Recently one of our affiliated CPAs recently shared a story with us about a current client of hers that was named an executor of an estate with a property and decided that he would prepare the estate tax filing to save money. The CPA wished her client the best and told him to give her a call if he had questions or changed his mind. Fast forward three years later; the CPA received a call from the same client asking her if she could help him deal with a letter he just received from the IRS regarding an estate audit. The IRS was seeking over $65,000 in taxes and penalties because of underpaid taxes. The worst part about it was the estate had been closed and the distributions had been made to the beneficiaries and the money had been spent.

Now the good news! Executor’s can get the professionals they need at reduced rates.

If you add up the top three areas of difficulties that executor experience; 80 % have trouble with the time required to do the job and getting help with legal and tax requirements. Why? Most executors feel the obligation to do as much as possible to keep administrative costs low to preserve the value of the estate. Which is admirable; it is also part of their fiduciary duty and a strategy that should be adopted any time possible. What most executors don’t realize is that there are estate professionals that specialize in assisting executors save time and money.  Would it be a good idea for an individual with limited knowledge of carpentry, home improvement and construction permits take on a project of putting on a new 800 square foot deck on their house by themselves. Likely no.

New Jersey Executor and Probate Center is solely dedicated to assisting executors navigate the probate process. Our mission is to take as much off an executor’s administrative plate while preserving the value of the estate. All of New Jersey Executor and Probate Resource Center estate professionals have decades of experience and operate on pre-negotiated reduced rates ensuring executors are saving money. No matter what stage of the probate process you are in or what service you need; we can help.
Contact New Jersey Executor and Probate Resource Center at (973) 998-5410 or www.njexecutor.com  for a free consultation.