The Pitfalls of DIY Estate Administration in Pennsylvania

Losing a loved one is challenging enough without the added stress of navigating the complex world of estate administration. While it might be tempting to handle the process yourself thinking you will save money, attempting to administer an estate without the help of an experienced probate / estate administration attorney in Pennsylvania can lead to numerous complications, which can cost extra time and money than if you had just hired an attorney in the first place. Here's why it's often a bad idea to go it alone:

Pennsylvania's probate process involves intricate legal procedures that can be overwhelming for those unfamiliar with estate law. From probating the Will and obtaining letters to providing proper notice to beneficiaries and creditors, each step must be completed correctly and in the right order. A single misstep could lead to delays, additional costs, or even legal challenges. You could even have to start again – from the beginning. I have had several cases in which executors hired me to assist them to clean up a botched estate administration after they received a Court Order telling them that they might be held in contempt of court for failure to properly administer the estate. In some of those cases, we have had to start the estate administration process all over again, which was a colossal waste of time (and money) and was devastating to the family.

Once you are sworn in as an executor or administrator, you have a fiduciary duty to the estate and its beneficiaries and creditors. This means you are legally obligated to act in the best interests of the estate, even if it conflicts with your personal interests. Without proper legal guidance, you might inadvertently breach this duty, exposing yourself to personal liability.

Estate administration often involves complex tax issues. Pennsylvania has its own inheritance tax, which is separate from the federal estate tax, and which is separate from income tax for the decedent and the estate. Navigating these tax obligations, filing the appropriate returns, and claiming available deductions requires specialized knowledge. Mistakes in this area can result in overpayment of taxes, or penalties for failure to file or for underpayment.

Properly valuing and distributing estate assets can be challenging, especially if the estate includes businesses, real estate, or complex investments. An attorney can help ensure assets are accurately appraised and distributed according to the will or state law, reducing the risk of disputes among beneficiaries.

Dealing with creditor claims against the estate requires careful handling. You need to know how to properly notify creditors, which claims to pay, in what order, and how to handle disputed claims. Mismanaging this process could leave you personally liable for unpaid debts.

Estate administration can sometimes lead to family disagreements or conflicts. An attorney can serve as an objective third party, helping to mediate disputes and ensure that the decedent's wishes are carried out fairly and legally. Administering an estate is time-consuming and can be emotionally draining, especially while you're grieving. An attorney can handle much of the paperwork and legal processes, allowing you to focus on personal matters.

While hiring an attorney involves upfront costs, it can actually save you time and money in the long run. Avoiding mistakes, minimizing tax liabilities, and preventing litigation can ultimately preserve more of the estate's value for beneficiaries. Every estate is unique, and unexpected issues often arise. Whether it's dealing with a missing heir, contested will, or ambiguous asset ownership, an experienced probate attorney will know how to address these complications effectively. Perhaps most importantly, working with a knowledgeable estate administration attorney provides peace of mind. You can rest assured that the estate is being handled properly, legally, and in accordance with the deceased's wishes.

While it is possible to administer an estate without legal help in Pennsylvania, the risks often outweigh any potential savings. The probate process is complex, time-consuming, and fraught with potential pitfalls. By working with an experienced estate administration attorney, you can ensure that the process goes smoothly, minimize your personal liability, and honor your loved one's legacy in the best way possible.

If you would like a consultation on this or any legal matter, do not hesitate to contact Scaringi Law at 717-657-7770.