What is Estate Administration?
When a person passes away, the assets and debts he leaves behind are referred to as his estate. Where there is valid Will, the personal representative is referred to as the executor and where there is none, the administrator. The personal representative is responsible for locating and collecting the deceased's assets, paying off the debts and distributing the assets.
Estate administration can be an extremely tedious and difficult process. It is quite another to find out what real properties the deceased has or which private limited company he held shares in. Upon the conclusion of the estate administration, the executor is obliged to prepare a statement accounts to be given to the beneficiaries.
Upon the demise of a person, the family members are immediately faced with significant expenses. These include funeral expenses and testamentary expenses such as lawyers fees and disbursements. These expenses together with any debts of the deceased will be paid out from the assets of the estate which includes of outstanding medical bills, credit card debts, housing loan etc.
Source : SmartInvestor Magazine, June 2006 by Ong Eu Jin of OSK Trustee Bhd
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